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A Seller’s Guide To Avoiding Amazon Penalties

In the past few years, Amazon has been the answer and solution to the financial problems of many individuals looking for diverse ways to make money on their terms. It is not uncommon to see many online today benefitting from Amazon’s extensive marketing privileges as retailers.

Amazon has laid down clear policies to guide the activities of its retailers and ensure that things run smoothly for everyone. Failure to follow these guidelines often results in penalties like account suspension or having the right to sell on Amazon revoked. It’s important to know the implications that come with breaking the rules, not only to protect you but also to ensure continuity in your venture with Amazon.

As a committed seller and retailer, you must keep up-to-date with all these policies to avoid bearing Amazon’s harsh list of penalties. This seller’s guide, therefore, shall give you insights into the gray areas to avoid falling on Amazon’s bad side. So, let’s begin.

1. Amazon Account Setup Mistakes

As the marker of your presence on Amazon, any mistake with your account can lead to serious penalties. Here are some of the most common errors many sellers make that you must avoid.

  • Choosing the Wrong Seller Account Type: Amazon features a variety of seller account types, be sure to make proper research on the type you fall into to avoid doing business under the wrong name and getting a strike for it.
  • Registering Multiple Seller Accounts: The rule on Amazon is one account per seller. No matter how varied your niche of products might be, all selling activities must be done under one account.
  • Copying Another Seller’s Setup: Apart from the fact that this is stealing, there is also the issue of not knowing the standing of that account to Amazon rules. Therefore, it is best to stick to doing your unique setup rather than copying that of others, just to be safe.
  • Incorporating Website URL: Adding your website URL in product descriptions or seller information to drive more traffic to your page is a policy violation that you must avoid.

Amazon’s rules can be overwhelming for beginners, so don’t hesitate to turn to software like Bindwise for help. They offer solutions on properly managing your Amazon account for optimum performance and to avoid penalties.

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2. Amazon Product Listing Fails

Product listing information is a vital aspect of Amazon selling. As a seller, you must know the right format, content, and pattern to post and list your products, and failure to comply with the rules can lead to account suspension. Here are some of these costly errors:

  • Incorrect Product Information: Amazon is established based on transparency, and to that end, all product information must be accurate. Any form of misleading promises or inaccurate statements will be flagged as breaking the law.
  • Using Colored Background For Main Images: There is a strict white background policy for all main images for practicality and better viewing. Anything other than white background is discouraged and penalized.
  • Using Non-Amazon Categories For Products: Products must be categorized based on the existing Amazon categorization.
  • Including Coupons or Sales In Product Title: No matter how tempted you are to add a little extra incentive to increase your presence and boost your Amazon sales, you shouldn’t do it. Adding such information as “Slashed sales” or “20% off” can lead to penalties or even cost you your account.

3. Amazon Customer Service Fails

To Amazon, its shoppers are the topmost priority, and any seller flagged by shoppers as inefficient or unable to comply with the policies is dealt with immediately. To know how to keep Amazon’s shoppers satisfied, it is best to stay away from the following mistakes and fails:

  • Paying For Positive Reviews: The system relies on authentic and sincere feedback, going out of your way to incentivize shoppers to give you positive reviews is against the rules and is not one of the ways to increase product sales.
  • Late Shipping: Amazon is known for its fast and reliable shipping policies. If you prove to do otherwise without proper communication, you will not only lose shoppers but also get flagged for it.
  • Expensive Delivery: No matter how profitable they may seem, avoid overpricing your shipping bills. Amazon regularly tracks your progress and reviews, so being modest with shipping costs pays much more.
  • Poor Customer Interaction: Keeping a good status in terms of customer interaction matters. You should avoid being labeled as a seller that argues with shoppers or one that has poor customer interaction. Remember—good customer care equals good business.


With everything mentioned above, the truth is you can never be too careful when it comes to dealing with the rules with Amazon. There are so many errors that can be made unintentionally and cost you a lot in the long run. Always refer back to the rules whenever you want to take major steps to be sure that you are doing the right thing at all times and to keep the business moving smoothly.

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