Amazon is a great platform selling products online. But Amazon has high standards. As such, occasionally, Amazon automatically cancels or suspends an order or orders. Generally, the reasons fall into three broad categories:
- Listing violates Amazon’s rules — Amazon is strict on compliance
- Poor seller performance — Amazon is focused on good customer service
- And, rarely, if there are indications of fraud — usually buyer-related fraud like a reported stolen credit card
If you have an order (or orders) auto-canceled by Amazon, this is a cause for concern. Generally, auto-canceled orders will count against a seller’s sales and performance metrics. For example, sellers are generally required to keep seller-canceled orders to less than 2.5%. So, if an order is auto-canceled, immediately look at your metrics and evaluate whether the canceled order is putting your seller account at risk.
If your seller account is suspended or terminated, it is probably wise to seek the counsel from experienced Amazon reinstatement attorneys like the ones at Revision Legal. Your seller account is your business and it is worth the time and expense to ensure that you are not permanently banned from selling on the platform. Here is a quick rundown on the first two categories.
Violating Amazon’s rules
As an online sales platform, Amazon has many rules that are intended to legally protect Amazon and consumers. For example, Amazon requires all sellers to comply with copyright and trademark laws. Thus, one common reason for an auto-cancellation is that Amazon has received a notice of infringement. Maybe the listing is alleged to contain a copyrighted photo or product description. Or maybe the notice claims that there is a trademark infringement. Sellers must be careful about infringement issues. Sellers should write their own descriptions and not just copy and paste from descriptions found online. Likewise, sellers should only use photos that they have permission to use or that are found in the public domain.
Other examples of why an order might be auto-canceled include:
- Listing illegal or prohibited products
- Listing counterfeit or pirated products
- Listing products where the seller is not an authorized seller of the products
- Listing poor quality products
- Listing products that violate Amazon’s community standards
- “Piggybacking” on or highjacking other listings
- And more
Seller Performance Issues
As noted, Amazon has built a reputation for excellent customer service. For example, Amazon requires fast and friendly shipping. Further, all sellers must provide an estimated shipping date for each listing. In 2020, Amazon notified all of its sellers that it would automatically cancel any order which was not shipped and confirmed within seven business days after the “ship-by” date detailed in the listing. This is another common reason for auto-cancellations.
Other examples of why an order might be auto-canceled for seller performance reasons include:
- Inaccurate listings
- Absent, inaccurate or invalid tracking information
- Excessive customer returns related to the product
- Excessive defect rate related to the product
- Excessive customer complaints and/or dissatisfaction related to the product
- And more
Note that some of these product-related deficiencies can cause Amazon to suspend or terminate the entire seller account (not just a particular listing). Again, sellers must be careful to ensure good customer service and that they are selling high-quality products.
For more information about how we can help with Amazon-related issues, or if you have other questions related to internet law, contact the trusted internet lawyers at Revision Legal at 231-714-0100.