Amazon Sellers Given Deadline to Provide Identification Documents
In an effort to combat counterfeit products and unscrupulous merchants, Amazon has informed third-party sellers on its marketplace that they must complete an identity verification process within a few days or risk having their payments suspended. The verification process, which has faced some challenges, was created by Amazon to comply with the INFORM Consumers Act, a new law that requires online marketplaces to verify and disclose the identity of high-volume third-party sellers. The law aims to provide transparency to shoppers and deter the sale of counterfeit, stolen, or harmful products online. Failure to comply with the law could result in fines for marketplaces like Amazon.
Some sellers have encountered difficulties with Amazon’s verification process since its launch in mid-May. Issues include not receiving text messages containing verification codes and delays or non-delivery of postcards with confirmation numbers. Shlomo Greenblatt, president of Albert Scott Ecommerce Management, explained that some brands’ contact details no longer match their accounts, while others had to track down the original owners of their Amazon accounts due to recent acquisitions. Despite these challenges, many sellers have managed to resolve their issues before the deadline.
Failure to provide the necessary information after a warning could lead to the suspension of sellers’ accounts, which has caused anxiety for many merchants who heavily rely on Amazon as their main selling channel. Mohamed Aden, director of operations at Amazon marketing operations agency Seller Interactive, revealed that approximately 40% of their partner brands encountered issues during the verification process. A yellow badge threatening account deactivation appeared on these brands’ seller dashboards until the outstanding issues were resolved.
Amazon appears to be aware of the difficulties faced by sellers during the process. The company has made improvements based on feedback and is actively supporting sellers in meeting the new compliance obligations. They have provided instructions and resources, as well as a dedicated team to assist sellers and address any questions or technical issues. Amazon encourages sellers to regularly check their Account Health Dashboard for verification status and requirements. If sellers encounter technical problems, they should contact Seller Support to resolve the issue without affecting their disbursements.
While some sellers have experienced challenges, Amazon’s decision to publish detailed information about each independent seller on its marketplace since 2020 is likely to benefit both shoppers and the company. Despite the volume of complaints from sellers being higher on Amazon compared to eBay and Etsy, the transparency provided by this information is expected to be advantageous in ensuring up-to-date and reliable deals.
Amazon sellers who have tips or concerns 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.