Amazon Sellers Given Deadline to Provide Identification Documents
In an effort to combat counterfeit products and fraudulent merchants, Amazon has informed third-party sellers on its marketplace that they must complete an identity verification process within a few days. Failure to do so will result in the e-commerce giant withholding payments. The verification process was introduced to comply with the INFORM Consumers Act, which requires online marketplaces to verify and disclose the identity of high-volume third-party sellers. The law aims to increase transparency for shoppers and deter the sale of counterfeit, stolen, or harmful products. Marketplaces that fail to collect necessary information about their sellers could face fines of $50,120 per violation, according to the FTC.
However, some sellers have encountered difficulties with Amazon’s verification process. Issues have ranged from not receiving verification codes via text message to delays or non-delivery of postcards containing confirmation numbers. Shlomo Greenblatt, president of Albert Scott Ecommerce Management, explained that contact details for some brands no longer match due to account setup many years ago, while others had to track down the original owners of Amazon accounts following recent acquisitions. Despite these challenges, Greenblatt confirmed that all his clients’ issues were resolved before the deadline.
Nonetheless, the consequences for non-compliance are significant. Amazon and other marketplaces are required to suspend sellers who fail to provide the necessary information after receiving a warning. Mohamed Aden, director of operations at Amazon marketing operations agency Seller Interactive, expressed sympathy for sellers facing difficulties, noting that approximately 40% of Seller Interactive’s partner brands encountered issues during the verification process. For many sellers, Amazon is their primary selling channel, making the situation particularly 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 a large team to assist with the process and answer questions. Sellers are encouraged to check their Account Health Dashboard for verification status and requirements. In the event of technical issues, sellers should contact Seller Support to create a case. Amazon will review and confirm the issue and will not withhold disbursements due to specific technical problems.
Since 2020, Amazon has published the business name and address of each independent seller on its marketplace. Juozas Kaziukėnas, CEO of e-commerce intelligence firm Marketplace Pulse, noted that while complaints from sellers on eBay and Etsy have been relatively low, having detailed information about each seller on Amazon is likely to benefit both shoppers and the company.
If you are an Amazon seller with a tip or information to share, please contact this reporter at mstone@insider.com, mlstone@protonmail.com, or via the secure messaging app Signal at (646) 889-2143 using a non-work phone.