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. Failure to do so will result in the e-commerce giant suspending payments to these sellers. 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. Marketplaces like Amazon, Etsy, and eBay could face fines of $50,120 per violation for failing to collect necessary information about their sellers.
However, some sellers have encountered difficulties during the verification process. Issues include not receiving text messages containing verification codes and delays or non-arrival of postcards with confirmation numbers. Shlomo Greenblatt, president of Albert Scott Ecommerce Management, explained that some brands’ contact details no longer match their accounts due to setting them up many years ago, while others had to track down the original owners of the Amazon account after being acquired. Despite these challenges, Amazon has assured sellers that improvements have been made based on their feedback and that a dedicated team is available to provide assistance.
Mohamed Aden, director of operations at Amazon marketing operations agency Seller Interactive, expressed sympathy for sellers facing difficulties and noted that around 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 nerve-racking. However, Amazon spokespersons have emphasized their commitment to supporting sellers and minimizing the burden on small businesses. They encourage sellers to regularly check their Account Health Dashboard for verification status and reach out to Seller Support for technical issues.
While complaints from sellers on eBay and Etsy have been relatively low, Juozas Kaziukėnas, CEO of e-commerce intelligence firm Marketplace Pulse, believes that having detailed information about each seller on Amazon will ultimately benefit both shoppers and the company. The deadline for completing the verification process is fast approaching, and sellers are urged to take prompt action to avoid any disruptions to their accounts.
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