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Amazon Drop Shipping Violations

Over the past few months we have seen a flurry of Amazon Drop Shipping violations. Most of the clients have drop shipped items from Walmart. Despite what you may have read in an Amazon course or somewhere online, drop shipping from Walmart does violate the Seller Code of Conduct.

Technically, an Amazon seller can drop ship products. Some even drop ship products directly from China. Amazon cannot legally ban this type of transaction. However, the drop shipping policy is quite clear that you cannot drop ship from a retailer like Walmart.

I will go over the reasons why you cannot drop ship from Walmart and what to do if you have been suspended from Amazon for drop shipping.

  1. If you drop ship from Walmart, your package will be sent in a Walmart box. Amazon does not want to promote a competitor such as Walmart. Thus, they do not allow products to be sent with Walmart packaging.
Walmart Drop Shipping to Amazon

2. Amazon wants your store name, company name or individual name on the packing slips or invoices. This identifies you as the Seller of record. Again, this is part of the branding strategy for Amazon.

Walmart Packing Slip is an Amazon Drop Shipping Violation

3. The other problem with drop shipping from a company like Walmart is they handle all of the returns. Amazon wants the vendor to handle all of the returns. This is to monitor customer satisfaction levels.

Amazon Drop Shipping Violation Appeal

Now that you know why drop shipping from Walmart is an Amazon Drop Shipping Violation, what can you do to get your account reactivated?

We will go through some of the common mistakes in Seller Appeals.

  1. You lack evidence that you have a new business model. Often times you have to show that you are going to sell via Amazon FBA or Amazon FBM. In order to do that, you need to have a way to source products from legitimate wholesalers. After your Amazon Drop Shipping Violation, the onus is on you to prove that you have a way to source products other than drop shipping. If you can show invoices from your new wholesaler, receipts for rented storage space, letters of authorization etc. Any evidence helps.

Of course this creates a chicken vs. the egg scenario. Many sellers do not want to invest in inventory without having their Amazon account reactivated first. However, I think Amazon treats this as a way to weed out serious sellers. If you do not want to buy $1000 of inventory from a legitimate wholesaler, what are the chances that you will become a million dollar/mo. seller that actually moves the needle for Amazon?

2. You need a lot of detail for these Appeals. You need to outline your new business step by step. I find the newly hired Amazon reps want more detail than ever before. Usually, you are going to provide Amazon with an assurance that you are no longer going to sell via Drop Shipping. Since you are radically altering your business model you will need to provide a lot of information about your sourcing procedure. How do you ensure products are of a high quality? How do you ensure that products are not violating any intellectual property rights? Where are you going to store your inventory and how will you ensure that is in a new and sellable condition?

3. Finally, if you have more than one drop shipping violation, it is extremely difficult to have those accounts reactivated. The first Amazon Drop Shipping Violation Appeal may take several attempts. However, if you have been reactivated and then you go right back to Drop shipping from Walmart or another retailer, it is very difficult to convince Amazon that you are not a bad actor. The first mistake can be an honest mistake as most sellers do not read the entire Seller policy. However, a second violation after you have given great detail why you will no longer drop ship is difficult to explain. You have to actually change your business model. Do not go straight back to drop shipping as your account will be permanently banned.

If you need anymore help with a Amazon Drop Shipping violation or an Appeal, please contact us to discuss your case.

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