Thursday, January 12, 2012

Amazon Holding on to their Seller's Funds For 90 Days

The purpose of this article is to raise awareness on how Amazon manages their sellers account. After being a seller with Amazon for almost a year, I've come to the conclusion that Amazon is operating a Ponzi scheme behind an "online marketing business". A week before Christmas I received a shocking email from Amazon:

Hello from Amazon.
We are writing to let you know we have removed your selling privileges, cancelled your listings, and placed a temporary hold on any funds in your seller account. Any new selling accounts you open will be closed.We took this action because your seller account failed our seller account review process.Per the terms of the selling agreement you entered into with Amazon Services, we reserve the right to limit or remove selling privileges as we deem appropriate.

We encourage you to take appropriate steps to resolve any pending orders. Note that any amounts paid as a result of A-to-z Guarantee claims and charge backs may be deducted from your sellers account.After 90 days, the hold will be removed and any remaining funds will be available per you settlement schedule. In addition, balance and settlement information will be available in the Payments section of your seller account. If you have questions about the funds, please write to While we appreciate your interest in selling on, the removal of your selling privileges is a permanent action.


Seller Performance Team

Knowing that I have never received any notifications from Amazon regarding the performance of my seller's account. I decided to send Amazon an email to inquire more information- which was a waste of my time. Amazon sent me an automated email that refused to answer any of my questions.

Hello from Amazon.Thank you for writing about your seller account. We regret that your account failed our review process. Your account has been closed and you are no longer eligible to sell on our site.Please note that we will be unable to correspond further about this situation.The blocking of your account is a permanent action. We take such step in the interest of maintaining a free and fair venue for all participants.

After going back and forth with Amazon, it dawned on me that it was not going to solve or change the status of my account. After doing numerous researches online, I found out that I was not alone in this predicament. There are a lot of sellers on Amazon who are single/stay at home parents, has been laid off, disabled veterans, college students and business owners. Most of these sellers have used their earnings as a supplement income and for others the earnings are their only source of income.

Holding a seller's funds for 90 days for no apparent reason is uncalled for and unprofessional, especially when the seller was not given a specific reason as to why his or her account was suspended/blocked. This has caused a lot of damage among families and business owners because they are left in debt, unable to pay their vendors, provide for their families and pay their staff members.

Sending out an automated email in form of a reply to a seller shows no form of professionalism on Amazon side. I have requested several disbursements from Amazon which was less than $400 and I never encountered a problem but the moment the amount was above $700 my account was automatically suspended with no explanation. My seller's account was in good standard until recently after receiving a negative feedback because I cancelled the last set of orders; due to the fact that I refused to ship off any packages when my Amazon froze my funds. Really? How could a company hold on someones funds and have the nerves to ask them to fulfill any pending orders.

Yes, as a seller I agree that it's my responsibility to adhere to Amazon's rules and regulation but at the same time I am entitled to an explanation on why my account was suspended/blocked. Please feel free to leave a comment or a brief story if your seller's account has been affected by Amazon.


James Rumrell said...

This exact same thing happened to with them. However the only differance with me, is that I did send off two orders even after they froze my account. But even though I did, they did not add the total these sales to the funds owed to me. And they still have yet to release my the fund that they claim is owned. And it has been 88 days since I shipped the 2 order after they suppended/deleted my account. Any advise would be awesome.

Thank you,

AJ said...

Hi James I'm sorry I'm just seeing your comment. I actually received my funds within the time frame. I didn't bother them much I just waited patiently for my funds to be deposited in my account. How long were you told that your funds will be held for?

袁正春 said...

Good riddance, AMAZON thief behavior - permanent possession of Seller's funds is an irresponsible company because closes our selling accounts without valid proof.

Most importantly, this is the absolutely illegal acts of thieves that does not release my sellers' funds(about $11552.78 dollar) on the date specified. (My seller account: amtopsellers )

When people ask me what exactly I have against AMAZON, I say the same thing every single time:

Amazon have all the power of a bank and yet none of the responsibility.

Amazon have been sued before for withholding my sellers’ money and I’ll take them to court if I have to.

From my experience and that of others who’ve suffered the same, it’s clear that Amazon are interested in buyers, not sellers. Amazon hold money amounting to thousands — literally thousands and thousands and thousands — from sellers without any valid reason, when not even your bank is legally allowed do that? (I’ve expanded on this point in this comment.)

AMAZON, you are the scourge of the internet.

Please find my post as following:

Someones could help us foward my post to AMAZON HQ or its CEO Jeff Bezos. If I could access all the funds in my Amazon seller account, I’m grateful for that.

AJ said...

I'm sorry to hear that. When did this happen? Did they give you a date when to expect your funds?

Anonymous said...

Just happened to us a week ago. I've already shipped one of the items so hopefully we'll at least get that money back in 90 days (I highly doubt it). We had to cancel about $1000 worth of orders because of this. Terrible business practice on their part. Really bitter about big online companies right now. Ebay did the same thing. Nobody is looking out for the smaller sellers it seems. It's definitely been an eye-opener.

AJ said...

I'm sorry to heat that. I wish you the best and hope that you do receive your funds in 90 days. This can be some very devasting news for some of us, especially the sellers who rely from the funds they earn online. It is also a long process with cancelling orders, communicating with the buyers and trying to get a refund from the shipping and handling company.

Angelle Lewis said...

I have had this EXACT thing happen to me this week. Word for word down to the date of the week. I am sick with Amazon right now. I can't believe they are doing this a week before Christmas. No one will return an email or get on the phone. They are holding $1200 of MINE! :(

AJ said...

This is wrong time and the worst thing Amazon could have done to their sellers. I hope all goes well with you Angelle. :-)

Anonymous said...

they held my $3400 for 127 days then i contacted the bbb

and in days i had my money

AJ said...

Oh wow, I'm glad that you were able to get all of your funds back. Great job!!! Kudos to the guys at Better Business Bureau for taking action in helping the sellers retrieve their funds back.

Blog Design by A Mommy's Blog Design ©