Amazon Sellers Given Deadline to Provide Identification Documents
In an effort to combat counterfeit products and scammy merchants, Amazon has informed third-party sellers on its marketplace that they must complete an identity verification process within a few days or risk not being paid. The verification process, which was created to comply with the INFORM Consumers Act, requires sellers to verify details such as their business address, phone number, bank account, and tax information. The new law aims to provide transparency to shoppers and deter the sale of counterfeit, stolen, or harmful products online.
However, some sellers have encountered issues with Amazon’s verification process. Problems range from not receiving text messages containing verification codes to delayed or missing postcards with confirmation numbers. Shlomo Greenblatt, president of Albert Scott Ecommerce Management, explained that some brands have outdated contact details that no longer match their Amazon accounts, while others had to track down the original owners of the accounts due to recent acquisitions.
Failure to provide the necessary information after a warning can result in sellers being suspended. Mohamed Aden, director of operations at Amazon marketing operations agency Seller Interactive, expressed sympathy for sellers facing difficulties during the verification process. He noted that around 40% of Seller Interactive’s partner brands encountered issues at some point. For many sellers, Amazon is their primary selling channel, making the situation nerve-racking.
Amazon has acknowledged the problems faced by sellers and has made improvements to its verification processes based on feedback. The company is actively supporting sellers in meeting the new compliance obligations and has dedicated resources to assist them. Sellers are encouraged to check their Account Health Dashboard for verification status and requirements. If technical issues arise, sellers should reach out to Seller Support for assistance.
While complaints from sellers on eBay and Etsy have been less frequent, Juozas Kaziukėnas, CEO of e-commerce intelligence firm Marketplace Pulse, believes that having detailed information about each seller on Amazon will benefit both shoppers and the company in the long run.
If you are an Amazon seller with a tip or concern, you can contact the reporter at mstone@insider.com, mlstone@protonmail.com, or via the secure messaging app Signal at (646) 889-2143 using a non-work phone.