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Tips for Protecting Your Business BEFORE an Amazon Seller-Account Suspension

By John DiGiacomo

For those operating online sales businesses, there are few things more devastating than trying to access your account in the morning and discovering that your seller account has been suspended. There are immediate emotional impacts — like panic — and, as time passes, potentially, there will be devastating financial impacts. This is true for those with Amazon seller accounts. But the impacts can be equally as devastating and disheartening when a seller account is suspended by other online sales platforms.

There are many strategies and tactics that can be used to avoid having an online seller account suspended. But there are also a number of tactics and strategies that should be used to protect your business and livelihood BEFORE an account suspension. There are many reasons that a seller account can be suspended. Some problems leading to deactivation can be resolved relatively easily. But, even with an “easy” problem, it may take weeks to have a suspension revoked. With more complex problems, resolution may take several weeks or months. In the meantime, your business and livelihood are suffering. Taking precautions NOW is essential. Here are a few tips for protecting your business BEFORE one of your seller accounts is suspended.

Diversify

If 100% of your business is tied to only one online sales platform, your business and finances are at severe risk if there is an account suspension. This risk is magnified by the fact that account suspensions can occur because of mistakes and because of events beyond your control. Of course, there are downsides and costs associated with establishing your business on a second, third or fourth online sales platform. But those downsides and costs are worth accepting to lower the risk of having your business destroyed by one account suspension. Starting slow is probably best since this prevents lack of focus from negatively impacting your current customer service obligations. Once you have other online sales platforms, even at rudimentary levels of operation, business can be shifted to those other platforms if there is an account suspension on your most profitable sales platform.

Investigate the Feasibility of Insurance Products

The main target of investigation here is business interruption insurance. Such insurance can be expensive and may be difficult to purchase for an online retail business. However, if the cost is reasonable enough, having insurance of this type can prevent a seller account suspension from destroying your business entirely. You should also investigate other types of insurance products that might help.

Build a Financial Emergency-Use Reserve

Along the same lines, the potential for financial devastation from an account suspension can be mitigated by building a financial emergency-use reserve. This is probably a good strategy for any business and is useful for any sort of emergency that might result in unexpected business stoppage. As a good “rule of thumb,” the emergency-use reserve should be large enough to cover at least six months of fixed costs, like salaries, rent, utilities, etc. You should also plan on adding $5,000-$10,000 to the reserve for legal costs. You will need an experienced business and internet attorney to help you overturn any account suspension.

Build an Attorney-Client Relationship BEFORE an Account Suspension

Hiring an experienced business and internet attorney is one key to successfully appealing an account suspension. An attorney can ensure the appeal paperwork is properly completed and is persuasive. At minimum, hiring an attorney to prosecute an account suspension appeal sends a powerful signal to your online sales platform that you are serious about your business and your obligations. Building an attorney-client relationship BEFORE an account suspension is also important. With a preexisting relationship, the appeal can begin immediately with no lost time for the attorney search.

Contact Revision Legal

For more information about how we can help with seller-account suspension and other related issues, or if you have other questions related to internet law, contact the trusted internet lawyers and seller account restoration attorneys at Revision Legal at 231-714-0100.

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