❔100 FAQs We Get All The Time

😀Onboarding New Partner FAQs

Can I use a virtual address for an Amazon Seller Account?

Typically, Amazon requires sellers to provide a valid physical address where they can receive mail and legal notices. Amazon, on some occasions, will request a utility bill to prove that your address is a physical address. This is to prevent drop shippers using shell companies and to ensure transparency and compliance with local regulations. Using a virtual address may not meet these requirements, as virtual addresses might not represent a physical location where the seller can be contacted.

How long does it take to gather the necessary documents?

It typically takes about two hours to collect all the required documents. If you are highly organized in your everyday life, you might be able to complete this process in 30 minutes.

How long does it take to create a new business?

It can take three to four weeks for your corporation to be formed. After that, you'll need additional time to create the new business banking accounts.

Why do you need my personal bank routing number and account number?

Your personal bank routing number and account number are needed to establish your Amazon accounts. We will aid you in uploading these documents straight onto Amazon and we never store this information in our databases. This information is used while waiting for your corporation to be formed, which can take three to four weeks.

What documents are needed if I already have an LLC I want to use?

If your already have an LLC, you'll be asked to provide your full name, a preferred nickname, personal email address, home street address, and your business bank account information, including EIN or TIN, business bank routing number, and business bank account number.

Can I use my existing Business Registration to open an Amazon account and change this later on once I decide to form a new LLC?

Absolutely, you have the flexibility to use your current Business Registration to open an Amazon account. If you decide to transition to a new LLC later on, we can facilitate this process seamlessly. To guide you through this transition, we will arrange a meeting with our resident CPA. During this session, you can discuss various aspects, including the tax implications of different business types (LLC vs. S Corp), the timing and procedure for filing business taxes, foundational practices for record-keeping, and details about the business formation process, including setting up a business bank account and addressing any related questions you may have. This ensures a smooth and informed transition tailored to your business needs.

Why is it important for my business address to match a personal address?

Amazon requires verification of your identification, including your name and EIN. The address must match to ensure you are exactly who you claim to be.

What documents are required for address and identification verification?

You will need to provide a copy of your utility bill matching the address on your driver's license, a copy of your driver's license (front and back), and a business bank account statement.

Why do I need credit card information and authorization for their company?

Credit card authorization is required for your company. You will need to provide details about your business credit card, including card type, full name, card number, expiration date, billing address, and personal email address. This will be used for future billing purposes for inventory and other including monthly recurring charges for Amazon tools like shipping software and Seller Board that we will use for your store.

What is the role of the property managers in this business model?

As property managers, we are responsible for finding, researching, purchasing, and shipping products to Amazon on the your's behalf. We keep the inventory churning to generate profits.

🔁Inventory Churn - Policies and Best Practices

Should I use a credit card or cash to buy my inventory?

There are pros and cons to both approaches. Cash can be paid via ACH and you'll save 3% on every purchase because there is no transaction fee applied by the credit card processing companies. Plus with cash you avoid paying any interest. If you are using a credit card or credit line to build your Amazon store you will be subject to a 3% fee for using credit cards for inventory purchases, but it also allows you to earn points and miles, which you can use to travel. When using the credit approach we highly recommend using 100% of your Amazon payout to pay down your balance to avoid interest and prevent losing profit to interest charges. You will be able to take less profit, but you will also avoid credit card balances and interest. We have many partners that start building with cash and then switch to a credit line as their store grows.

What is meant by "churn" in this business model?

"Churn" refers to the process of purchasing inventory, selling it through Amazon, and then repeating the cycle. It is essential for making money in this business.

How does the product offer system work?

We will send you a product offer via email, and you have 48 hours to opt out of it. If you do not opt-out, we will fulfill on that product and continue to keep your store full and producing for you.

What is the best approach to managing this business?

It's best to think of this business on an annualized basis rather than stressing over it month to month. This approach allows you to enjoy the business more and see better results.

What happens if a product stays in the inventory for an extended period?

While some products may sit longer than 30 days, it's rare to experience a complete loss. It's more cost-effective to allow inventory to sell through gradually rather than prematurely cutting profits.

Why is it called "Churn"?

Churn is our term for inventory turn-over rate. The rate at which you buy and sell inventory taking or reinvesting the profit into the next buy. That's what we call the Churn. Every ecommerce seller and/or retailer deals with inventory turn-over rate as one of the main considerations. You've seen it in every Walmart, Target or Costco. Once inventory is purchased it has a lifecycle. That lifecycle can be based on expiration dates, season, and general inventory aging. Typically inventory is the highest possible sell price when its fresh and new as the store owner wants to hold the price as high as possible to recoup as much profit as possible. As sales velocity slows the store owner will lower the price to recoup their capital and make the next purchase. Sometimes inventory will be priced to move since it's closing in on expiration date, or the season is about to end or it's just been sitting with to low sales velocity. At a typical store this will be a cycle; highest price, regular price, on sale, clearance, bogo and closeout being the lowest price.

🤝Amazon Store Management Hurdles, Challenges and Enforcement Tactics

What are Cease and Desist Letters in the context of Amazon, and why a your might receive it?

Cease and Desist Letters are notices from certain brands or law firms claiming that you are not authorized to sell their products on Amazon. These letters may appear during any part of your journey as one of our partner stores on Amazon. While it might seem concerning, it's important to understand that most of these letters are likely not genuine, and are often a scare tactic to encourage other sellers off profitable listings. Please, send us any and all such communications and we will evaluate their authenticity. If they are authentic we will take the proper actions such as contacting the law firm making the claim directly. We have never had any serious issue arise from these letters even when they were authentic. Most law firms will allow you to sell through your position as long as we agree to avoiding these listings in the future. Rest assured we require all of our distributors to assign chain of custody and selling rights to your store BEFORE we buy the product. So it's very rare to encounter an issue of any consequence in regards to these Cease and Desist letters.

Are these Cease and Desist Letters usually real or fake?

In the vast majority of cases, these letters are not genuine. They are often sent by other sellers who have created a forged letterhead from popular law firms and may be trying to intimidate you attempting to discourage you from listing products.

What do I need to do if I receive a Cease and Desist Letter?

Scan or take a screenshot of it and email it to the back office. Most of the time, we'll detect it first, but if they receive it in the mail it's best to send it to us as we may not have seen it yet.

Can you provide more insight into why brands send these letters when they may not be able to enforce them?

Brands may issue these letters for various reasons. It could be an attempt to protect their brand image, or they might want to discourage other sellers. However, in many cases, they lack the legal means to enforce them.

What has been the experience in dealing with Cease and Desist Letters on Amazon?

Over the past seven years of selling on Amazon, our experience has shown that these letters are most often fraudulent. Most of the time, they can be safely ignored. But out of the abundance of caution we will still investigate each one and make a determination how to proceed. Typically we will lower the price of the item in question and sell through as quickly as possible to avoid escalation.

What is a Section 3 Violation?

Section 3 is a very scary term, but not all Section 3 violations are terminal. Section 3 refers to the Section 3 of Amazon terms you agree to when you sign up for your Amazon Seller Central Account. In general it says that Amazon can deny you the right to sell on their platform for any reason at any time with 72 hours notice. They also have the right to hold your payouts in reserve and hold your inventory if they are suspicious it may be inauthentic. The burden of proof is on the store own to prove that everything is in order. Generally, when we keep very good records and buy from reputable sources we can navigate these Section 3 scares.

I received a notice in my account that says, "Your account is currently under review in accordance with section 3 of the Amazon Business Solutions Agreement." What does this mean?

This is a potential Section 3 violation that we need to address. It can be many things, but it usually is Amazon wanting to dive deeper into a few common areas. Typically it's for a product authenticity check. Something about your shipment flagged their AI compliance bots and they are now requiring further information. These happen all the time especially in the first year of operations as Amazon tries to suss out bad actors. We keep all your shipping documenation and chain of custody documents for this exact occasion. Normally your store will experience a suspension for around a week while Amazon's team reviews the documentation. Often you will need to hop on a video call with Amazon and they will interview you and ask very specific questions only the store operator will know. We will provide you with a primer document to be ready for this interview that contains the specific answer for your store. Sometimes they will ask a question not on our primer document and it's totally okay to answer, "I'm not sure on that, let me get back to you." Not every business owner knows the name of the shipping company they used a month ago, and yes sometimes they ask that.

💡Amazon Seller Concepts and Terms

What is an Amazon storefront, and how does it work?

An Amazon storefront is a digital storefront that you own, allowing you to sell products on the Amazon Marketplace. Stable Storefronts help you discover, source, and sell popular name-brand products on Amazon.

Why is setting up accounts correctly important for Amazon approval?

Amazon is strict about the accuracy of the information provided. A small mistake can lead to approval delays and additional explanations required when re-submitting information.

How often are the policies and requirements from Amazon updated?

Amazon may update its policies from time to time. We stay updated on these changes to ensure your accounts are set up correctly.

Can we use an address that was previously used to open a Seller Central account?

Amazon requires each seller account to have a unique and distinct set of information, including a valid physical address. Reusing an address that was previously associated with another Seller Central account can lead to complications and potential policy violations.

How does the Amazon business ownership model work?

Think of it as a property ownership relationship. You own the Amazon digital storefront, and we act as property managers. We handle finding products, managing inventory, and all the operational aspects. You collect the revenue, and we receive a percentage if we do a good job.

What is the storefront link, and how can I obtain it?

Your Amazon or Walmart storefront link is a unique URL that directs people to the your Amazon store. This can be obtained and supplied by our Partner Success Team.

Can I share the storefront link with friends and family to allow them to purchase products from my store?

Yes, you are allowed to share your storefront link with friends and family, and they can purchase products from your store to support their your business on Amazon.

How does the payout system work on Amazon?

Amazon follows a two-week rolling payout period. This means that two to three days after a your item is shipped to the customer, the funds go into the your available balance, minus the reserve.

What is the reserve balance on Amazon, and how does it affect payouts?

The reserve balance is the portion of your funds held for pending orders that are still in the shipping period. Payouts are calculated as the total balance minus the reserve balance.

How can I get more frequent payouts from Amazon?

As you continue to operate on Amazon, your rolling payout period can reduce from two weeks to daily payouts, occurring almost every 24 hours.

What does FBA stand for, and what does it entail?

FBA stands for "Fulfillment by Amazon." It means that we send products from our warehouses to Amazon's fulfillment centers, and Amazon takes responsibility for delivery to customers, customer service, and returns. Fees for this service are calculated as part of the Amazon product offering.

What is Amazon FBA vs FBM?

Amazon FBA (Fulfillment by Amazon) means Amazon handles shipping, reviews, and customer support for your products. FBM (Fulfillment by Merchant) involves shipping products directly from the your/warehouse to customers. Stable Storefronts primarily use FBA.

What are the advantages of using Amazon FBA for my storefront?

Amazon FBA provides protection against negative reviews, handled by Amazon. It ensures your store remains healthy and can grow. However, Amazon takes a larger percentage of the sales revenue in exchange for these benefits. If you've seen any of the Stable Storefronts projections and proforma sheets all of those calculations are using the Amazon FBA fee structure.

How does the process of preparing products for Amazon FBA work?

Stable Storefronts receive the products in bulk to one of their warehouses, where they prepare the items for shipment to an Amazon Fulfillment Center. This includes inspecting,unwrapping, stickering, and repalletizing the products.

What is Amazon FBA ungating, and why is it important?

Amazon FBA ungating is the process of gaining approval from Amazon to list and sell certain restricted or gated products. It's essential because it expands your product catalog and allows you to sell a more diverse range of items on Amazon.

How many types of ungating are there, and what are they?

There are five different types of ungating on Amazon. The first two are Type 1 and 2, where we answer test questions, pass the test, and then list and sell products. Then there's Type 3, which applies to pesticides and chemicals. We take a course, answer test questions, and pass, allowing your store to sell the products behind these gates. However, for the remaining two types, Grocery and OTC medicines, we require your active participation.

What is required for the two ungating types that require my participation?

Amazon requires an invoice for a specific brand or product to be sent to the registered address on the your Amazon account. For these cases, you'll need to purchase a product from a designated retailer or wholesaler (not us) and have it sent to the your house. We will source and purchase these items for you with your payment method and ship them to your registered Amazon address. Once the packages arrive we will provide a shipping label to ship the products back to our prep center and warehouse. Nothing to worry about we walk you through the process, so there's no confusion.

When initiated, What is my role when an ungating process?

When such an ungating process is initiated, you will receive a box at your registered address, which we'll be tracking. Once the item arrives, you will be provided with a UPS or USPS label. You'll need to attach the label to the box, covering the existing shipping label, and drop it off at their nearest UPS or post office location.

How often do I need to participate in the ungating process?

This process may take 5 to 15 minutes of your time per month. As we continuously work on ungating more products for their store, your participation will help speed up the process and expand their store's product catalog.

Is ungating important for the long-term growth of my Amazon store?

Yes, ungating is crucial for expanding your store's product offerings and ensuring long-term growth. While it may require a small amount of your time, the benefits in terms of product diversity and sales potential are substantial.

What is the significance of sales milestones in the context of ungating?

Sales milestones are critical because they affect your ability to ungate products on Amazon. Achieving certain sales revenue goals, such as $25,000 or $50,000, can allow you to ungate specific brands without needing an invoice immediately. Essentially the more mature your store becomes the more often your store will be automatically ungated on product categories and brands without the hassle of the whole ungating process.

Are there specific numbers or targets set for ungating categories and brands in the initial 60 days?

While specific numerical targets can vary based on factors such as product sourcing and customer cooperation, the initial focus is on un-gating important categories, such as grocery and over-the-counter medicine. Additionally, the aim is to ungate multiple brands during this period.

What types of ungating categories are there, and how do they affect the process?

There are different types of ungating categories, such as type one, type two, type three, and type four. Each type corresponds to different aspects of ungating, including specific brands and product categories. For example, type four involves category ungating.

Why is un-gating grocery and over-the-counter medicine considered essential in the early stages?

Grocery and over-the-counter medicine categories are often prioritized due to their significance and demand. These categories are frequently targeted because they offer substantial opportunities for sales and customer engagement. These categories also offer a more favorable return policy for the seller that’s much better than other categories like electronics.

How quickly can I expect to ungate categories and brands in my store?

The speed of un-gating can vary based on multiple factors, including product sourcing and the promptness of customers in mailing products for photos and documentation. The goal is to streamline the process and provide a timeframe as soon as possible for each ungate.

Are there any updates or targets for the number of brands or categories un-gated during the 60-day period?

The aim is to ungate key categories and several brands within the initial 60 days. The process is very dependent on Amazon’s approval rate which can vacillate.

Please note that these goals and targets may vary based on individual circumstances and factors, so the actual results can differ for each store.

Do the shipping labels that we use for ungating from pirateship.com have an expiry date?

Unused labels are automatically refunded after 28 days. It's important to remember that Pirate Ship will automatically refund you for any USPS or UPS label purchases that don't have tracking updates after 28 days, at that point, you will want to call the back office team to generate another one if it is already past 28 days.

What is the ungating process on Amazon, and why is it important?

The ungating process on Amazon is a set of steps and requirements that all sellers must go through to gain approval to sell certain restricted or gated products. It's important because it allows sellers to expand their product offerings and reach a broader customer base. It also acts as a filter for Amazon to weed out opportunistic sellers who may be peddling counterfeit or stolen goods. By requiring gate approval Amazon can frustrate bad actors by making them jump through these hoops thereby making Amazon an inhospitable place for such sellers. Real sellers have nothing to worry about in the long term and will be patient through the process as they gain trust from Amazon and eventually more favorable ungates.

How many types of ungating processes are there?

There are five types of ungating processes, categorized as Type 1, Type 2, Type 3, Type 4, and Type 5. These types vary in complexity and the requirements sellers need to meet for approval.

What is Type 1 ungating?

Type 1 ungating involves products that are auto-approved once the seller enters the product information into the Amazon platform.

What is Type 2 ungating?

Type 2 ungating requires sellers to answer a series of questions related to the product. Once these questions are successfully answered, sellers are approved to list and sell the product.

What happens if a product falls into Type 3, Type 4, or Type 5 ungating?

Products that fall into Type 3, Type 4, or Type 5 ungating have more complex requirements. Type 3 typically involves compliance tests and courses, while Type 4 and Type 5 require proof of purchase through invoices and shipment arrangements.

How do sellers prove they have purchased products for Type 4 and Type 5 ungating?

Sellers must provide invoices for at least 10 of the products, which are ordered from a different retailer that Amazon recognizes as trustworthy. The invoice stands as proof that you actually purchased the products and have possession of them. This thwarts both dropshippers and bad actors selling stolen or counterfeit items.

Can sellers list their products on Amazon before getting approval for Type 4 ungating?

No, sellers can only list their products on Amazon once they have proof of purchase, i.e., the products have gone to your address and you’ve provided an invoice that matches the delivery address. Approval from Amazon is required before arranging the shipment to Amazon.

Is the ungating process specific to product types or categories?

The ungating process can be applied either per brand or per category. Once a category or brand is ungated, you no longer have to go through the ungating process for those specific items.

How many products or categories will my store be able to ungate in the first 60 days?

The specific goals for ungating in the first 60 days may vary based on the seller's experience and current practices. Typically, sellers aim to ungate as many Type 1, Type 2, and Type 4 categories as possible.

What is Type 4 ungating, and which categories does it focus on?

Type 4 ungating specifically targets categories such as grocery and over-the-counter medicine. Sellers aim to get through at least one or two of the most important categories within these areas.

What is the focus of Type 3 ungating?

Type 3 ungating focuses on different brands rather than specific categories. The goal is to ungate as many brands as possible, but there may not be a specific number set for the first 60 days.

Can you compare the ungating process with and without the assistance of a service like ours?

With professional assistance, the ungating process is streamlined, and errors are minimized. Sellers are guided through the process, and it's estimated that they can open up two to three times as many products or categories in the same amount of time compared to doing it on their own.

Is the ungating process a one-time task, or does it happen throughout a cycle?

The ungating process is not a one-time task but occurs throughout lifecycle of your store. It involves multiple steps and dependencies, which we need to manage continuously for different products and categories. That being said it gets easier as the store matures and has more history with Amazon.

What is the recommended budget for my Amazon store un-gating process within the first 90 days?

On average, you should budget between $500 and $800 dollars for the first 90 days. The cost per un-gate order typically ranges from $50 to $100.

What should I expect in terms of spending before their store is un-gated?

We encourage you not to buy products on your own, but rather let our team order the necessary products for un-gating purposes. Therefore, the spending is focused on un-gating efforts, and it's expected to be $800 or less for each store of the first three months.

What is the primary purpose of this initial spending for un-gating?

The primary purpose of this initial spending is to get the store ungated on Amazon. The money is spent buying 10 units of the product and/or brand we intend to apply for. It is not intended to generate profit for your Amazon store. In most cases, our partners either keep the product, and in some cases the inventory may be returned. Please expect that in some instances there might be a slight financial loss, particularly for items in categories like grocery, where returns are challenging.

Can you clarify the significance of selling in the grocery category for un-gating?

Selling in the grocery category is beneficial for un-gating because Amazon typically doesn't accept grocery item returns. Therefore, our approach is to prioritize selling in that category to ensure inventory is kept from being stranded due to return limitations.

Have you had any successful experiences with un-gating where the store becomes profitable?

Yes, in some cases, out of five to ten different brands that we've worked with for un-gating, one or two of them have turned out to be profitable. However, the primary focus of the initial spending is on getting the store ungated, and profit generation is a secondary goal.

Please keep in mind that the budget for un-gating is primarily a required investment to ensure access to a broader range of products, and profitability often comes after the initial un-gating process. Other companies charge $1,500 to $3,000 per ungated category/brand and we include it for the life of the account. The cost for purchasing the ungating items are handled by you the partner. The strategy, labor, and outcome is handled by us.

In what step does ungating fall on in the process?

In months 2-3, right after your Amazon Seller Account is approved, we’ll begin to apply for category and brand ungating, complete necessary steps, and await Amazon's approval for category and/or brand ungating.

What is Q4, and why is it significant for Amazon sellers?

Q4, or the fourth quarter, is the final three months of the year, including October, November, and December. It's a crucial period for Amazon sellers due to increased consumer spending during the holiday season, which includes Black Friday, Christmas, and other holidays.

What are some common misconceptions about Q4 and Q1 for new Amazon sellers?

One common misconception is that Q4 is the busiest and most profitable time for Amazon sellers. While this is true for mature Amazon stores, it may not be the case for new sellers who've recently joined the platform. Amazon tends to impose tighter restrictions and storage limits for new sellers during Q4 to avoid issues due to their inexperience on the platform.

Why does Amazon impose stricter storage limits and restrictions for new sellers during Q4?

Amazon limits storage and inventory allowances for new sellers during Q4 to prevent excess inventory from overwhelming their fulfillment centers. The holiday season is exceptionally busy, and they want to ensure smooth operations.

What can new Amazon sellers expect in terms of storage limits during Q4?

New sellers typically start with around 100 cubic feet of storage. However, these limits may shrink or remain the same after October 1st. This is particularly challenging for new sellers who may want to increase their inventory during Q4 but face restrictions.

How does Q1 differ from Q4 for Amazon sellers, and what can they expect?

Amazon typically allows new sellers to send in more inventory after January 15th. There is less competition during this time, making it an excellent opportunity for new sellers to grow their sales.

Can you explain what Peak Season Fulfillment rates are on Amazon during Q4?

Peak Season Fulfillment rates refer to the FBA (Fulfillment by Amazon) fees for shipping products from Amazon's fulfillment centers to customers. These fees increase significantly from October 15th through January 15th during the holiday season due to the transfer centers and shipping centers being near capacity.

How does the Peak Season Fulfillment fee impact Amazon sellers' inventory strategy during Q4 and Q1?

Due to the peak season fulfillment fee and storage limits, it often makes sense for Amazon sellers to send in less inventory during Q4. In contrast, Q1 provides an opportunity to send in more inventory with lower fees.

Why is Q1 expected to be more profitable for new Amazon sellers compared to Q4?

Q1 offers a more favorable environment for new sellers. With the ability to send in more inventory, reduced competition, and a better understanding of Amazon's selling platform, Q1 can result in higher sales and profits compared to the constraints faced during Q4.

What can new Amazon sellers anticipate for their second Q4 in 2024 after having more experience and history on the platform?

After 12 or more months of consistent operation and with increased trust from Amazon due to additional history and positive reviews your second Q4 will be much better. This trust from Amazon will allow you to take full advantage of the holiday sales season, including Black Friday and Christmas.

Can I buy products from my own store?

Ordering products from your own storefront to your registered Amazon address can raise a red flag with Amazon. Amazon's terms of service permit only one seller account per address. To avoid potential issues or account suspension, it's crucial not to order products using your own seller account's information.

Can my friends or family members leave reviews for products on my store if they have purchased them?

No, having friends or family members of partner stores leave reviews on your storefronts is not advisable. Amazon strictly prohibits review manipulation, which includes having friends or family members leave reviews on your store. This practice poses a risk of account termination which is not covered in the Bulletproof Guarantee.

How does Amazon detect review manipulation or friends and family leaving reviews?

Amazon utilizes advanced AI and tracking systems to detect unusual review patterns, including those from friends and family members. Attempting to manipulate reviews is against Amazon's terms of service and can and often will lead to permanent account suspension.

Is there a risk involved in having friends or family leave reviews on yours’ stores, even if it will help my business?

Yes, there is a significant risk involved in having friends or family members leave reviews on your stores. This practice violates Amazon's terms of service and can result in account termination, which is not worth the potential short-term benefits.

How can I grow my Amazon business while ensuring its safety and compliance with Amazon's rules?

To grow your Amazon business safely and in compliance with Amazon's rules, it's best to follow these key principles:

You should never order products from your own storefront using information associated with your seller account.

Avoid having friends or family members leave reviews on your store. Focus on selling products and building trust with Amazon through ethical practices.

How can I make sales when my product is listed at a higher price than the lowest FBA price on Amazon?

While it may seem challenging, being patient and holding the price will lead to higher profits. We aim to make more money per sale, and this approach pays off over the long term as Amazon’s share of the sale price is also larger. A healthy churn cycle is 60-75 days per sku/asin.

Can I be competitive and make sales when my price is higher than the buy box price on Amazon?

Yes, it is very possible to make sales even when your products price is higher than the buy box. While you may not achieve the highest sales volume, the strategy of selling at a higher price can yield more profit per sale in the long run. Amazon’s algo is not based only on the lowest price. It actually serves up the highest price it believes the customer will click “buy now” on. Amazon is one of the world’s most effective companies at leveraging customer shopping data.

What should I consider when deciding whether to price products higher or lower than the competition?

We will always price your items based on Amazon’s recommended pricing. In some instances we may go a few percentage points higher than the suggest price. Should you want to adjust the price you’ll be able to cover that in your monthly Partner Success Meetings. The choice between pricing high for long-term profit or competing for sales with lower prices depends on your preferences and business goals. We are partners and want to align our strategies with your vision.

Is there a risk involved in continually dropping prices to compete with others on Amazon?

Constantly dropping prices can lead to lower profitability and competing with low-margin sellers. Many sellers on Amazon use AI repricing tools and will instantly adjust to beat your new lowest price. It’s often a race to the bottom. We aim to maintain profitability and grow your store for long-term success.

How should I evaluate my Amazon business when it comes to pricing strategy and profitability?

You should always consider your Amazon business on an annual basis and work with us to find the best strategies that align with your goals. Long-term success is the ultimate aim. Some partners prefer to run their Amazon using the Break Even Strategy for the first two years to ensure more sales volume and a greater volume of transactions just to get through the ramp up period as fast as possible. Amazon rewards the churn. They love to see a high volume of transactions. Other partners are very comfortable growing their store slow and steady taking profits on every churn. The store will see fewer transactions per year since the inventory will be priced a bit higher and therefore the store will get through the ramp up more slowly. The strategy is completely up to you the store owner. Both strategies are valid and effective.

Is it possible to have a balance between maximizing profits and clearing inventory efficiently?

Yes, we aim to strike a balance between maximizing profits and efficiently clearing inventory. It’s our primary aim. The churn cycle will most often be 60 - 75 days. As the store matures and it wins the buy box more, these cycles will shorten. Holding the price higher and patiently waiting for our turn in the buy box is our advised approach. Amazon selling ins’t a get rich quick scheme. This approach ensures the best outcome for your Amazon store.

What does FC Transfer stand for, and what does it entail?

FC transfer stands for "Fulfillment Center Transfer." It refers to the process of redistributing inventory from one Amazon Fulfillment Center to another within Amazon's network. This transfer occurs based on factors like customer demand, location, and inventory optimization. Essentially, FC transfers help ensure that products are strategically placed in various fulfillment centers to enhance fulfillment efficiency, meet customer demand, and provide quicker deliveries. This process is managed by Amazon to make inventory available in regions where there is demand, improving the overall customer experience and the customers shipping times.

What are FC transfers in the context of Amazon fulfillment?

FC transfers refer to the process where Amazon redistributes your inventory from one fulfillment center to another based on factors such as demand and location. Amazon's vast network of fulfillment centers specializes in different aspects, and FC transfers help in optimizing inventory distribution. Amazon has so many trucks on the road at a given time they are able to use them like rolling warehouses expanding their maximum storage capacity as they move the inventory throughout the country. It’s the same cost for Amazon to roll a truck across the country so it prefers to roll them full circulating the inventory regularly.

What happens during FC transfers?

When the your product arrives at an Amazon fulfillment center, it will undergo an FC transfer, which means Amazon will redistribute it to various fulfillment centers across the country. This process is designed to meet customer demand efficiently and move the inventory across the country landing it where Amazon thinks the demand will be.

How does Amazon determine the distribution of products during FC transfers?

Amazon, as a marketplace facilitator, uses data on customer locations and product demand to determine where products should be sent. This ensures products are available in regions where they are in demand.

Why might a product go in and out of being available for sale during FC transfers?

During the FC transfer process, your product may not immediately qualify for the buy box. This could result in it not being available for sale, especially if Amazon promises a two-day Prime delivery but can't fulfill that promise due to ongoing transfers. The term Amazon uses is Prime Eligibility. Once your product is Prime Eligible it typically means its now sitting in a distribution center ready for delivery within 2 days of the intended market. Prime Eligible items win the buy box more often.

What can I do if my product is going through FC transfer, and I can't make it available for sale right away?

The best approach during FC transfers is to be patient. As partners, we're here to assist you, but this is a natural part of the process that might take some time.

How long does an FC transfer typically take, and what's the cost during this process?

FC transfers can take up to 30 days or more. The good news is that there is no additional cost during this process; your fees are calculated based on the final stage when the product is ready for sale, and every seller is experiencing the exact same thing.

Can sending inventory more frequently help expedite FC transfers?

Sort of, sending inventory to Amazon more frequently, such as on a weekly basis, will ensure you have inventory at every stage of the selling process. You want inventory in the distribution center ready to be sold as Prime Eligible, inventory in FC transfer on its way to the distribution center, and inventory being prepped at our facility getting ready to get on a truck. This strategy ensures a steady flow of products into Amazon's fulfillment centers.

Are there any changes expected in Amazon's FC transfer policy, and how will I be informed about them?

Any updates or changes to Amazon's policies will be communicated to yours as soon as they occur. We are committed to keeping you informed about any developments that may affect your business.

Is there a specific strategy to combat FC transfers, and how can I ensure a smooth inventory distribution process?

While FC transfers are a standard part of the business, we aim to ensure a continuous flow of inventory by sending shipments regularly. A well-managed inventory process helps mitigate the impact of FC transfers.

Is there any cost associated with FC transfers, and what can I expect during the process?

There are no additional costs associated with FC transfers. During the process, you may experience periods when your product is not available for sale, but this is part of the standard procedure, and we aim to minimize any disruptions.

What is the benefit of using (FBA) over (FBM) in terms of feedback management and handling negative customer reviews?

With FBA, you can easily remove about 95-96% of negative feedback with a simple click, which doesn't negatively impact your buy box score, and often Amazon automatically removes them. In contrast, with FBM, it's more challenging to get negative feedback removed, and it can lead to a significant reduction in buy box share.

What is the storage limit for New Seller Accounts in Amazon?

New sellers typically start with around 100 cubic feet of storage.

What are the capacity limits with Amazon FBA?

Capacity limits, or storage limits, with Amazon FBA refer to the amount of inventory storage space Amazon allows sellers to send into their fulfillment centers. These limits are usually calculated based on cubic feet of storage and can vary depending on your seller accounts history and performance.

Why are capacity limits important for Amazon sellers?

Capacity limits are crucial because they determine how much inventory you can store in Amazons fulfillment centers. The more inventory you can send in, the more opportunities you have to sell products and generate revenue. It's a critical factor for scaling your business on Amazon.

How often are capacity limits calculated?

Amazon recalculates capacity limits approximately once a month. You will typically receive the next months capacity limits two to three days before the current month ends. These limits can change based on your stores performance, inventory management, and other factors.

How can I maximize my capacity limits?

To maximize capacity limits, it's essential to keep your shelves full by regularly sending inventory to Amazon's fulfillment centers. As you approach your capacity limits and continue to send products, Amazon is more likely to grant you higher storage limits in the future.

Why is it essential to balance sending in inventory and selling through it?

During certain times, like Q4, Amazon may limit the amount of inventory you can send in to prevent storage overloads. Balancing your inventory management by gradually sending in products and selling through them helps you maintain a consistent presence in Amazon's fulfillment centers.

How does keeping my shelves full benefit my long-term success on Amazon?

By consistently filling your storage limits and gradually increasing them over time, you create opportunities to expand your product catalog and generate more sales. Amazon rewards active sellers with higher capacity limits, a higher share in the buy box, and more ungates paving the way for your business to grow and thrive.

What's the significance of the Inventory Performance Index (IPI)?

The Inventory Performance Index (IPI) is a metric Amazon uses to assess your inventory management. It’s essential a ranking metric that numerically ranks the performance of any particular item in your inventory. Maintaining a high IPI score is essential because it directly impacts your capacity limits. Amazon doesn’t favor “dead stick” inventory that sits for periods longer than 90 days. A higher IPI score usually leads to more storage space, allowing you to send more inventory to Amazon.

How can I improve my IPI score?

To improve your stores IPI score, we focus on reducing excess inventory, avoiding long-term storage fees, ensuring inventory accuracy, and managing your restock strategies effectively. Keeping popular and fast-selling products in stock can help maintain a good IPI score.

Are there additional fees if a product is removed from Amazon's inventory?

Amazon attaches fees to the removal of inventory. It's often more cost-effective to let inventory sell through rather than removing it.

Can you explain the concept of the "buy box"?

The "buy box" is the goal of ever seller. It’s the primary focus of all of our efforts on Amazon. It's the box that appears on the product detail page, allowing customers to quickly add an item to their cart and make a purchase. Winning the buy box is the most important factor when it comes to selling through your inventory quickly. The quickest way to win the buy box is through ppc ads, but the best long term strategy is growing a mature store that doesn’t need to buy ppc ads to win the box.

How does the "buy box" tie into store health and Amazon's recommendations?

The "buy box" is influenced by your store's health score, which is determined by various factors, including the number of products you sell and customer feedback. Amazon automatically recommends a seller to customers in the buy box. Sellers with a higher store health score have a better chance of winning the buy box.

How can I improve my store's health score to win the buy box more often?

To improve your store's health score, we focus on increasing your store's activity, such as listing more products and getting positive customer feedback. Additionally, promptly addressing negative feedback can help maintain a high store health score.

💙Stable Storefront Information for Prospects and Partners

What is Stable Storefronts?

Stable Storefronts is a company that offers done-for-you Amazon FBA stores.

What is a done-for-you digital storefront?

A "done-for-you" digital storefront is a proper business that is filed and structure from scratch built for ecommerce. That business will then be fully set up on ecommerce marketplace platform that is ready for immediate use by business owners. The done-for-you term refers to all the steps, processes and labor required to both setup the business and associated marketplace accounts; it also encompasses the routine maintenance, hygiene and management required to grow the storefront on a daily, weekly, monthly and yearly basis.

What is the main focus of Stable Storefronts business model?

The primary focus of Stable Storefronts is to create businesses that generate passive income for you by selling products on large ecommerce marketplaces like Amazon and Walmart. You act as the capital partner, while Stable Storefronts will be the operations partner.

Who is USA Wholesale Suppliers?

USA Wholesale Suppliers is a Stable Storefronts Partner responsible for sourcing and purchasing the products available in our storefronts. They play a pivotal role in ensuring the quality and variety of products we offer. They focus on bringing in sellable inventory from distributors as well as inspecting and prepping the inventory for shipping into Amazon or Walmart.

What is the difference between Stable Storefronts and USA Wholesale Suppliers?

Stable Storefronts primarily manages the operational aspects of the ecommerce stores. On the other hand, USA Wholesale focuses on the procurement and shipping logistics of the products available in our storefronts.

What information do I need to provide if I want Stable Storefronts to create a company for me?

To initiate the company creation process with Stable Storefronts, you will be furnishing the following personal details: your full legal name (matching your ID), a nickname which is a casual preferred name, personal email address, a preferred contact number, and home street address. Additionally, you'll need to provide essential bank details for Amazon when the time comes. For documentation, we require your Social Security Number (SSN), the desired business name (to confirm availability), a business email address, and the business mailing address. This personally protected info will be given directly to the accounting firm. Ensuring accuracy in the submission of these details streamlines the company formation process.

Why can't Stable Store Fronts handle the shipping directly to Amazon for ungating?

Amazon requires the invoice used for ungating to have the your address on it, which is why we can't send the product to ourselves. It's an Amazon policy that we must adhere to.

What is the Break-Even Strategy for Amazon sellers?

The Break-Even Strategy is a long-term approach aimed at maximizing profits by initially running an Amazon storefront as close to break-even as possible. This strategy involves prioritizing volume and transactions over immediate profitability. It works because lower priced items sell faster.

How does the Break-Even Strategy benefit Amazon sellers and their partners at Stable Storefronts?

The strategy aligns the interests of both Amazon sellers and Stable Storefronts as partners. In the short term Stable Storefronts doesn't benefit as there are no splits until the capital partner is totally paid back. But this strategy shortens the window of time to be as fast as possible and moves the store through the Amazon restrictions more quickly due to the increase in transactions. The strategy allows for long-term profit growth by focusing on volume and growth opportunities.

Is the Break-Even Strategy a permanent approach to selling on Amazon?

No, the Break-Even Strategy is not a permanent approach. It is recommended for the initial three to twelve months of selling on Amazon. It's a strategic move to build a strong foundation and create long-term profit potential.

How does the Break-Even Strategy help with gating and increasing category access on Amazon?

Running the Break-Even Strategy enables Amazon sellers to build volume and trust with Amazon at a faster pace. This volume contributes to achieving access to more categories and brands that may be gated for new sellers.

Can you explain how this strategy affects product selection and profitability in the short term?

With the Break-Even Strategy, the focus is not on making a significant profit on each product in the short term. Instead, products are selected to be sold at break-even or close to it, aiming to build trust and volume on the platform. This approach allows us to buy a wider variety of product during the building of trust phase with Amazon.

What are the potential benefits for Amazon sellers who implement the Break-Even Strategy?

Implementing the Break-Even Strategy can potentially lead to faster long-term profit growth. By forgoing immediate profits and building volume, sellers can unlock higher profitability products once they pass the initial "incubation period." Once the store is considered mature in Amazons eyes we will adjust the strategy to focus on profit over sales velocity.

How can I determine if the Break-Even Strategy is the right approach for me as an Amazon seller?

The Break-Even Strategy may not be suitable for all partners. If you are willing to forgo taking profits early and prioritize long-term growth, it might be a good fit for you. It's the method that Joe prefers for his own store and used to grow his Amazon store.

What should I expect during the initial months of implementing the Break-Even Strategy on Amazon?

During the first few months, you may notice that profitability isn't the primary focus. Therefore your payouts will only be covering the cost of the inventory and shipping. The strategy emphasizes building volume, trust with Amazon, and gaining access to more product categories and brands.

How can I ensure that my Amazon store remains safe and in good standing while being managed by Stable Storefronts?

We do that for you by adhering to Amazon's rules and guidelines very strictly, following ethical practices, and seeking guidance from outside consulting service like Riverbend. The entire company ethos is focused on building stable long term ecommerce assets.

Why does Stable Storefronts sometimes list products at higher prices than the lowest FBA price on Amazon?

Our standard playbook, if you're not opting in for the Break-Even Strategy, is to try and yield the highest price when the inventory is placed into Amazon. As the inventory ages we lower the price to liquidate the position and buy the next item. That time period is usually 60 - 75 days once the product is Prime Eligible.

Does Stable Storefronts follow a specific pricing strategy for products in my store?

Yes, our pricing strategy evolves based on the age of the inventory. In the first 30 days of Prime Eligibility, we aim to maximize profits by setting prices at the level we want to sell. Days 31 - 60, we may adjust pricing depending on performance. After 60 days, we may become more competitive in clearing inventory, and by the 75-day mark, we may reach the lowest competitive price to liquidate inventory. Our goal is to sell through all the inventory before the 90th day after the product becomes Prime Eligible after it's FC Transfers are complete.

Can I communicate my pricing preferences or strategy to Stable Storefronts?

Yes, you can communicate your pricing preferences and strategy with us. We want to work together to determine the best approach for making money together long term. The best place to do this is at your monthly Partner Success Meeting. However, if your desire is to sell your inventory at a loss we will advise you to only lower it to break even. Any inventory you desire to sell below the level we call "the floor" may not count toward your Bulletproof Guarantee volume.

What is the Law of Averages in the context of Stable Storefronts?

The Law of Averages is a fundamental principle in our business model at Stable Storefronts. It refers to the recognition that individual product performances can and will vary, and our overall success is based on the collective average performance of our product portfolio on an annual basis.

How does the Law of Averages influence product selection and performance?

The Law of Averages guides our product selection strategy by acknowledging that some products may outperform while others may fall short of our targets. We ensure that, on average, our portfolio maintains a minimum 10% Return on Investment (ROI), as per our guarantee.

Why is there an emphasis on considering a full years time frame for inventory performance?

We encourage partners to look at the performance of their inventory on an annual basis to mitigate the impact of short-term fluctuations and seasonal volatility. Averaging performance over a more extended period provides a more accurate representation of the overall store success.

How does Stable Storefronts ensure a minimum 10% ROI based on the Law of Averages?

Our sourcing strategy involves a meticulous process where we avoid acquiring products with less than a 15% ROI at the time of purchase. This commitment aligns with our guarantee and contributes to the overall average ROI meeting or exceeding 10%. Keep in mind not every product will generate 10% ROI - some will be more and a few will be less, but over the course of the Bulletproof Guarantee Period you will see a minimum of 10% profit total or we will make you whole.

Can you provide examples of how the Law of Averages works in product performances?

Certainly. The Law of Averages means that while individual products may have varying ROIs (e.g., 3%, 7%, 9%, 17%, 20% ROI on individual products nets out to an avg of 11.2% ROI), our focus is on the collective average. For instance, even if one product has a lower ROI in a particular month, others may compensate with higher ROIs over that same period of time.

How does the Law of Averages relate to the overall business strategy at Stable Storefronts?

The Law of Averages is a cornerstone of our overall business strategy. It allows us to diversify our product portfolio, balancing lower ROI faster-moving products with higher ROI slower-moving products. This approach aims for stability and sustained profitability.

Is the Law of Averages impacted by category restrictions and ungating efforts?

Yes, initially, as we focus on ungating in certain categories, some products may have lower ROIs due to increased competition. However, our long-term strategy involves accessing more lucrative categories, contributing to an improved overall average ROI.

How does Stable Storefronts adapt its strategy to the Law of Averages over time?

As partners progress and gain reviews, our ability to access higher ROI categories increases. Our commitment to understanding the Law of Averages remains constant, adapting our sourcing strategy to optimize product performances and overall profitability.

What should partners keep in mind when considering the Law of Averages?

It's crucial for partners not to get fixated on the performance of individual products. The Law of Averages encourages a broader perspective, focusing on the collective success of the entire product portfolio over an extended period.

What is the estimated timeline for achieving profitability on my Amazon store?

The estimated timeline for profitability spans the first 12 months of your account. Please note that these timelines are estimates and may be subject to slight changes based on the availability of requirements, your responsiveness, supply chain condition and Amazon's response times.

Amazon's third-party seller revenue was $140.05 billion in 2023, up 19% from previous year. About 94% of Amazon sellers use the Fulfillment by Amazon service (FBA). 76% of Amazon sellers become profitable, with 63% seeing profitability within their first year. 55% of Amazon sellers report monthly sales of over $5,000.

What is the estimated timeline for getting my initial investment back (Initial Operating Capital) - Bulletproof Guarantee.

We try to be very clear in the contract that the timeline for recoupment of the initial operating capital is variable. We provide inventory targets and goals. We make recommendations you make decisions. There are other factors we cannot predict; what will Amazon allow your account to sell and carry and at what rate will those gates open up, how much product you are allowed to sell is available at any given time in the market for us to purchase on your behalf, and how regularly is the store capitalized with inventory and at what velocity. Since those factors are out of our control and impossible to predict, we've instead promised our Capital Partners a full recoupment of their initial operating capital once they purchase and we ship in 10x their initial operating capital worth of inventory. For example if you started your journey with us at $35,000 USD then by the time you purchase and we ship in $350,000 USD worth of inventory you should have recouped the full amount of your initial operating capital or IOC. We call this the Bulletproof Guarantee at Stable Storefronts. The data gives us confidence that it's a promise we can make, and we've put our money where our mouth is. That recoupment rate will be assessed 60 days after that last inventory shipment becomes prime eligible.

What is the Bulletproof Guarantee?

The Bulletproof Guarantee at Stable Storefronts refers to a store performance guarantee that Co-Founder Daniel Hunt designed. Many of Stable Storefronts competitors offer time based guarantees of 3 years. But Daniel and Joe believe it can be achieved faster than that based on the store owners shipping inventory regularly and consistently. So instead of writing a time based guarantee the owners at Stable Storefronts developed a volume based guarantee, based on inventory churn. A healthy store keeps shipping and Amazon rewards the sellers who continually ship great product. Time based guarantees by their nature also must include volume and purchase requirements any way. Example - if a store carried no inventory for 3 years then it's impossible for it to make money. A time based guarantee also incentivize the management company to ship inventory in regardless of the profitability in order to try and hit their time goals. Stable Storefronts opted for a volume based guarantee to allow for flexibility of unknown factors like supply chain challenges, Amazon policy changes, and product availability in the marketplace. The data output from running hundreds of storefronts using this method gives us confidence that it's a promise we can make, and we've put our money where our mouth is. That recoupment rate will be assessed 60 days after that last inventory shipment becomes prime eligible.

What activities are involved in the first month of onboarding?

During the first two months, onboarding activities include completing necessary requirements, setting up your LLC, and registering your Amazon account.

How is the budget for inventory allocated during the product allocation phase in month 4-7

In month 4, 10% of the monthly budget is allocated for initial product purchases, gradually increasing to 50% as fast as we can through month 7 to meet growing demand. This includes activities like product selection, optimization, and expanding the product catalog. For example if you set a budget of $10k in month 4 there is a very good chance we will only ship in $1k - $5k of product. The reason for this is month 4 is very early in the process and we want to distribute your shipments to be smaller and more regular as we train Amazon.

What happens in months 8-12 of continuous improvement?

During months 8-12, a dynamic approach to product selection and inventory management is maintained. The monthly budget allocation gradually increases for sustained growth until reaching 100% of your inventory budget.

What factors influence the profitability of the store within the 12-month period?

Profitability is influenced by constant optimization, increased product allocation, the monthly inventory budget. The most important factor shipping inventory on a regular cadence as to fill up the store, and keep it full, with sellable inventory.

How can I ensure the profitability of my Amazon store?

You can contribute to the profitability by actively engaging with the process, providing timely responses, and collaborating on strategic decisions. We are dedicated to maximizing your investment and ensuring a profitable trajectory for your Amazon store. If profitability quickly is your primary concern consider running the standard playbook strategy and allowing us to price the inventory a bit higher. This will slow down sales velocity a bit, but each sell will yield more profit.

Can the timelines for each phase be adjusted?

Timelines are estimates and may be subject to slight changes based on various factors such as the availability of requirements, your responsiveness, and Amazon's response times. We will communicate any adjustments promptly.

What support can I expect during the continuous improvement phase?

Our support includes regular monthly Partner Success Meetings and we monitor the store every other day by logging into the Seller Board app. We are committed to ensuring your Amazon store's sustained growth and profitability. When you win, we win.

How can I stay informed about the progress of my Amazon store?

Regular updates and communication will be provided throughout the process, but the best way to stay informed is through the monthly Partner Success Meetings. They are mandatory for all partners, but can be scheduled at the most convenient time for you, and they usually only take 15 - 30 minutes at most. Additionally, you can and should be checking your Seller Board app whenever your curious about how your store is performing. Seller Board is updated every couple of hours directly from Amazon's api.

How is the profit distribution structured for the Amazon FBA stores created by Stable Store Fronts?

You, as the store owner, keep 70% of all profits after deducting Amazon's fees and product costs. Stable Store Fronts receive the remaining 30% for store management at the entry level management package. If you decided on the Platinum Management plan then you have a more preferencial split at 80/20. 80% to you the capital partner and store owner and 20% to us the management company and prep center.

What's the role of Stable Storefronts in helping me manage my inventory and capacity limits?

Stable Storefronts is committed to helping you make the most of your Amazon FBA experience. We provide guidance on inventory management, capacity limit optimization, and other aspects of selling on Amazon, aiming to maximize your long-term profitability.

How do I handle customer returns and refunds on Amazon?

Good news. We handle them for you. The return will be shipped to our prep center by the customer. We use Amazon's automated refund system in Seller Central. Returned items are inspected promptly and restocked, resold through another channel if possible, donated or disposed according to the condition. We follow Amazon's recommended customer-friendly return policy to preserve your seller rating.

⚖️15 Amazon Policies worth understanding and adhering to.

What is Amazon's policy on product authenticity?

Amazon has a zero-tolerance policy for counterfeit products. Sellers must provide authentic products and may be required to submit invoices, purchase orders, or letters of authorization from the brand owner to verify authenticity. In order to achieve this we only buy our inventory through reputable distributors who are willing to provide their proof of authenticity in writing. We then take one extra step that most management companies don't take; we contact the brands directly to ensure the distributor is authorized to pass on those permissions. The brands don't always respond. In the event they do not respond we will proceed with shipping the inventory into Amazon as typically the distributors written authorization is enough.

How does Amazon handle intellectual property infringement claims?

Amazon takes intellectual property rights seriously. Rights owners can submit infringement claims through the Brand Registry or Report Infringement form. Amazon may remove listings, suspend selling privileges, or withhold payments if infringement is confirmed. Since we sell on existing listings with history we typically avoid these infringements, but from time to time they may pop up. We handle them swiftly. The usual course of action is to remove that product from your store. In some cases the brand may give us a sell-through agreement.

What is Amazon's policy on pricing and fair competition?

Amazon prohibits price fixing, predatory pricing, and other anticompetitive practices. Sellers must set their own prices independently and are not allowed to manipulate prices or customer reviews to gain an unfair advantage. Low quality sellers engage in this behavior and Amazon is constantly battling it. We typically focus on holding the MAP pricing as long as possible and only lowering the price as the inventory ages.

How does Amazon's product safety policy work?

All products sold on Amazon must comply with applicable laws and Amazon's own safety requirements. We must promptly report any potential product defects or safety concerns and may be required to provide safety documentation for certain product categories when we become aware of them.

What is Amazon's policy on customer data privacy?

Sellers are prohibited from using customer data for any purpose other than completing the specific transaction or providing customer service. Amazon strictly enforces data protection regulations and expects sellers to comply with all applicable privacy laws. Since we sell 90% through Amazon FBA we rarely if ever have the customer data. A complete list can be found here

How does Amazon handle prohibited product listings?

Amazon maintains a list of prohibited products that cannot be sold on its platform. Listing such items can result in immediate suspension of selling privileges. Sellers are responsible for ensuring their products comply with Amazon's policies and all applicable laws.

What is Amazon's policy on product condition misrepresentation?

Sellers must accurately represent the condition of their products. Misrepresenting a product's condition (e.g., selling used items as new) can lead to account suspension. Amazon encourages buyers to report any discrepancies in product condition. We only ship in product that is accurately listed.

How does Amazon's policy on multiple seller accounts work?

Generally, Amazon allows only one seller account per business entity. Operating multiple accounts without Amazon's approval can lead to account suspension. Sellers must request permission and provide a legitimate business reason to operate additional accounts.

What is Amazon's policy on drop shipping?

Amazon allows drop shipping, but the seller must be the seller of record, identify themselves as the seller on packing slips and invoices, and be responsible for accepting and processing returns. Drop shipping from other online retailers is prohibited. Most of the time when you've heard of "dropshipping" it falls outside of this very specific definition and is not permitted. A common occasion for drop shipping is when a brand manufactures a product over seas and boxes it up for sell exclusively on Amazon and freights it directly to an Amazon inbound recieving center using Amazon Global Logistics.

How does Amazon handle seller identity verification?

Amazon requires sellers to provide accurate business and personal information during account registration. This may include providing government-issued ID, business registration documents, and bank account information. False information can result in account termination.

What is Amazon's policy on product bundling?

Sellers can create product bundles, but each bundle must have its own unique ASIN. Bundles must consist of complementary items, be listed as a single unit, and not be separated by the buyer. Creating bundles to bypass listing restrictions is prohibited, and we nver do it. However we use bundles all the time to provide more sales channels for each SKU.

How does Amazon's restricted products policy work?

Certain product categories require approval before listing. Sellers must submit an application and meet specific requirements to sell in these categories. Listing in restricted categories without approval can lead to account suspension. This is what is called ungating in the seller community, and we focus on ungating heavily throughout the life of the storefront.

What is Amazon's policy on customer communication?

Amazon restricts the types of messages sellers can send to customers. Communication must be related to specific orders, and sellers are prohibited from marketing or promotional messages. Using buyer-seller messaging for off-Amazon sales is strictly forbidden. We only use the messaging system to respond to inbound requests and we adviser our partners to do the same.

How does Amazon handle tax collection and remittance for sellers?

Amazon calculates, collects, and remits sales tax in states where it has agreed to do so. In other jurisdictions, sellers are responsible for tax compliance. Amazon provides tools and reports to help sellers manage their tax obligations but recommends consulting with tax professionals.

What is Amazon's policy on product reviews?

Amazon prohibits any attempt to manipulate customer reviews, including offering incentives for positive reviews or using services that generate false reviews. Violating this policy can result in account suspension, removal of reviews, and withholding of funds. This includes asking freinds and family to make purchases from your storefront and leaving favorable reviews.

📄Miscellaneous Amazon Questions that come up commonly.

What is Amazon's A+ Content, and how can it benefit my listings?

A+ Content allows brand-registered sellers to enhance product descriptions with rich media. It can increase conversion rates by up to 10% by providing more detailed product information. Currently, we do not offer this as a service, because we sell on existing listings that are created and maintained by the brand.

What is Amazon's Brand Registry, and should I enroll?

Brand Registry is a program that helps protect your intellectual property and create enhanced listings. Brands enroll when they have a registered trademark, so they can access additional marketing tools and better brand protection. As resellers we do not have need of the brand registry.

How can I improve my Amazon SEO to increase visibility?

Since we sell on existing listings there is no need to optimize product titles, bullet points, and descriptions with relevant keywords. We try to use listings that contain backend search terms, obtain quality reviews, and maintain competitive pricing to improve search rankings.

What are Amazon Lightning Deals, and how can I participate?

Lightning Deals are time-limited promotions featured on Amazon's Deal page. To participate, you must be eligible and submit deals through Seller Central, typically requiring a significant discount and sufficient inventory. Typically, we avoid lightniing deals unless it's a closeout situation.

How can I protect my products from counterfeiters on Amazon?

Brands will enroll in Brand Registry, use Amazon's Transparency program, and consider joining Project Zero. We regularly monitor your listings on our monthly Partner Success meetings. Sometimes our inventory may be flagged as suspected counterfeits, which they are not, and we deal with Amazons resolution team on your behalf immediately to rectify that. This is the reason the chain of custody when purchasing inventory is so vital.

What is Amazon's Subscribe & Save program?

Subscribe & Save allows customers to receive regular shipments of products at a discounted price. We like to stock inventory that's eligible for this program, potentially increasing customer loyalty and consistent sales.

How do I handle product recalls on Amazon?

We handle that for you. We immediately remove the affected product from your listings. Contact Amazon and provide details of the recall. If needed we reach out to customers who purchased the product and offer refunds or replacements as appropriate.

What is Amazon's Transparency program?

Transparency is a product serialization service that helps prevent counterfeits. Enrolled products receive unique codes that customers can scan to verify authenticity. Transparency codes are usually found on electronics and apparel, but can be found on other types of inventory as well.

How do I manage seasonal inventory fluctuations?

We use Amazon's sales history and forecasting tools to predict demand. We try to increase inventory before peak seasons and during high-demand periods.

What is Amazon's Renewed program for refurbished products?

Renewed allows the sale of high-quality refurbished products. Sellers must apply and meet strict quality standards. It's an opportunity to sell restored items with the "Amazon Renewed" guarantee. Not all of our sellers will qualify, and it's impossible for immature accounts to qualify. When the time is right we will apply for this program for your storefront. If accepted we can use this as a channel to resell returned items. This program is highly restrictive and is only open to partners who qualify based on valume and history on the platform.

How do I handle international sales and currency conversions?

Amazon Global Selling allows store owners to expand to international marketplaces. There are separate listings for each country, considering local languages and currencies. Amazon handles currency conversions for payouts. At current we do not offer this service.

What is Amazon Handmade, and how is it different from regular FBA?

Amazon Handmade is a separate marketplace for artisans selling handcrafted goods. It has different fees and policies compared to regular FBA, focusing on unique, handmade items. It's a direct competitor with Etsy.

How can I use Amazon's Request a Review button effectively?

The Request a Review button allows you to ask for reviews within 4-30 days after an order. It must be used strategically, especially for products with low review counts or high customer satisfaction. Since we sell on listings that already have reviews we rarely need to use it.

How can I optimize my Amazon storefront for mobile shoppers?

Your storefront is already optimized for mobile. The listings we target use mobile-friendly images and concise text.

What is Amazon's Climate Pledge Friendly program?

Climate Pledge Friendly highlights products that meet sustainability certifications. Some, but not all of our listings contain these relevant certifications and badge and appeal to eco-conscious shoppers. We cannot guarantee Climate Pledge Listings for all your inventory as we do not control the listings themselves.

How do I handle tax collection and remittance for Amazon sales?

We recommend you work with your CPA and use Amazon's tax reporting documentation downloaded from your Seller Central Account. You may also consider using Amazon's tax remittance service as well. But always consult with a tax professional to ensure compliance with state and local tax laws.

What is Amazon's Small and Light program?

Small and Light offers reduced fulfillment fees for small, light items priced under $7. Eligible products must meet specific size and weight requirements. It can help improve profitability on low-priced items. We already use this program whenever available to maximize profits.

What is Amazon Business, and should I consider selling B2B?

Amazon Business is a marketplace for business customers. Some of our inventory is suited for B2B selling. It can provide access to a different customer base and potentially larger order volumes. From time to time you may see a business listing in your Amazon Seller Central Account.

How do I handle MAP (Minimum Advertised Price) policies on Amazon?

This is very important for our distributors and their brands. We consistently remind our partners of the MAP policy. We maintain healthy relationships with our distributors by honoring the MAP price and it's important for the long term success of your store and the continued access to inventory.

What is Amazon's Project Zero, and how does it combat counterfeits?

Project Zero is an invitation-only program that gives brands advanced tools to protect against counterfeits. It includes automated protections, a self-service counterfeit removal tool, and product serialization. It helps keep the platform healthy, but as legitimate sellers we have to navigate it with care. Our team is well versed in the policies and take every possible precaution to keep your account in compliance.

What is Amazon's Voice of the Customer program?

Voice of the Customer provides feedback on product and listing issues that may lead to poor customer experiences. We monitor these alerts in Seller Central and address any respond promptly to maintain account health.

What is Amazon's Born to Run program for new products?

Born to Run is an invitation-only program that allows sellers to send larger quantities of new products to FBA centers without sales history. It's designed to help launch new products with sufficient inventory to meet potential demand. As we move into white labeled products for our partners we will utilize this program. More info to come in the future.