What is "Section 3 of the Business Solutions Agreement"?

What is "Section 3 of the Business Solutions Agreement"?

Understanding Amazon Seller Account Deactivation & “Section 3 of the Business Solutions Agreement”

The First Sentence of Amazon’s Deactivation Notices

If Amazon deactivates your seller account, the notification almost always starts with:

"Your Amazon seller account has been deactivated in accordance with section 3 of Amazon's Business Solutions Agreement. Your listings have been removed."

OR

"We are writing to inform you that your account is at risk of being deactivated in accordance with Section 3 of the Business Solutions Agreement."

This wording confuses many sellers. However, to understand what this means, we must break down Section 3 of Amazon’s Amazon Services Business Solutions Agreement (ASBSA).

 

 

What Section 3 Says

Section 3, titled “Term and Termination,” states that Amazon can suspend or terminate your account for several reasons, including:

  • Violating Amazon’s policies (such as listing prohibited products or engaging in review manipulation).

  • Operating multiple accounts improperly (Amazon may link you to another seller account that is banned or restricted).

  • Engaging in fraudulent or deceptive activity (Amazon’s system may flag suspicious behavior in your account activity).

  • Harming other sellers, customers, or Amazon’s interests (such as excessive claims, chargebacks, or customer complaints).

  • Falling below Amazon’s performance metrics (such as order defect rate, late shipment rate, or valid tracking rate).

****At the end of Section 3, Amazon states:

"...(g) Sections 2, 3, 4, 5, 6, 7, 8, 9, 11, 14, 15, and 18 of these General Terms and Section P-4 of the Transaction Processing Service Terms survive and the Fulfillment by Amazon Service Terms survive as set forth in Section F-13 of such terms."

What Does This Mean?

Essentially, even after Amazon deactivates your account, much of the Business Solutions Agreement still applies. This means:

  1. Your obligations to Amazon do not disappear. Amazon may still hold your funds or require action from you.

  2. Amazon still has control over certain aspects of your account, such as inventory stored in FBA.

  3. Policies like dispute resolution, tax obligations, and transaction processing rules remain in effect.

In simple terms, Amazon may have deactivated your account, but they still hold the power over important aspects of your business under the agreement you agreed to.

 

Why Was Your Account Deactivated?

Amazon usually states the specific reason in the deactivation notice. For example:

Example Notification:

"We took this measure due to your violation of Amazon’s Seller Policies and Seller Code of Conduct: https://sellercentral.amazon.com/gp/help/G1801, and your violation of the Amazon Drop Shipping Policy: https://sellercentral.amazon.com/gp/help/G201808410."

How to Interpret This^

This tells us that Amazon detected unauthorized dropshipping activity. To understand why the account was flagged, the seller must analyze their business operations:

  • Did customers report receiving products in third-party packaging (instead of Amazon-branded boxes)?

  • Were orders fulfilled by a retailer instead of the seller?

  • Were tracking numbers mismatched or delayed?

*By carefully reading the deactivation notice, you can pinpoint the violation and determine the best appeal strategy.

 

 

Common Reasons for Account Deactivation
(SECTION 3)

Amazon can deactivate accounts for many reasons, including:

  • Policy Violations

    • Selling restricted products

    • Review manipulation

    • Drop-shipping policy violations

    • Violating Amazon’s Fair Pricing Policy

    • Using misleading ASIN variations

  • Performance Issues

    • High order defect rate (ODR) (target: under 1%)

    • High cancellation rate (CR) (target: under 2.5%)

    • High late shipment rate (LSR) (target: under 4%)

    • Low valid tracking rate (VTR) (target: 95%+)

    • Low on-time delivery rate (OTDR) (target: 97%+ for seller-fulfilled orders)

  • Intellectual Property Claims

    • Trademark infringement

    • Copyright violations

    • Selling counterfeit goods

    • Authenticity complaints from customers

  • Account Linkage Issues

    • Linked to a previously banned account

    • Linked to an account owned by a friend, relative, or employee

    • Selling an account to another seller

    • Operating multiple accounts without permission

*Amazon will always specify the violation somewhere in the notice. Your job is to read carefully and investigate what triggered the deactivation.

 

 

-What To Do Next?

  1. Read the notification carefully. Identify the exact policy Amazon is citing.

  2. Investigate your business operations. Check customer complaints, order fulfillment processes, and any potential red flags.

  3. Gather evidence. If you believe Amazon made an error, prepare invoices, tracking details, and proof of compliance.

  4. Write a clear and factual appeal. Avoid emotions—focus on what went wrong and how you have fixed the issue.

If you need help crafting a strong appeal, our team specializes in getting Amazon seller accounts reinstated. Contact us today for expert guidance.

 

 

 

***The Biggest Advice We Can Give

  1. Review and understand what Amazon is saying. Use all the information to your advantage.
     

  2. Find the policy, understand it, and learn from it.

  3. Take time to review your accounts, feedback, complaints, comments, and messages to identify where the complaint or issue originated. This helps you understand what you did wrong—which is what Amazon noticed.
    For example, if a customer stated that the shipment was late, analyze how many shipments were late and why. The reason for the delay is the ROOT CAUSE, which is what you must explain in your appeal.

  4. If Amazon requests documents or a Plan of Action (POA), read and understand what they are asking for. Then, reflect on why they are asking for it and respond accordingly.

 

 

Need Help? Reach out to us for a personalized consultation. 
We’ll review your case and help you submit a solid appeal to Amazon.
Call or message us via WhatsApp at 1-800-491-9519




PART 2:
How Long Does Amazon Hold Your Funds After Deactivation?

When Amazon deactivates your seller account, they usually freeze your disbursements for a period of time. The standard timeframe for fund holds is 90 days, but this can vary based on your situation.

Key Factors Affecting Fund Holds:

  1. Amazon’s Final Review:

    • Amazon holds your balance to cover potential chargebacks, refunds, or claims.

    • After the review, they will release funds if no outstanding issues remain.

  2. Policy Violation Severity:

    • If deactivation is due to serious fraud or counterfeit claims, Amazon may hold funds indefinitely.

    • If it’s a minor policy violation, funds are often released after the standard 90-day hold.

  3. Chargebacks & Returns:

    • Amazon waits to ensure customers don’t file excessive claims before releasing your balance.

  4. Successful Appeal:

    • If you win your appeal and get reinstated, Amazon will resume normal disbursements.

 

 

How to Retrieve Your Held Funds

If Amazon does not reinstate your account but you want to recover your balance, follow these steps:

  1. Wait for the 90-Day Period to Pass

    • If your funds are still on hold after this period, you’ll need to take action.

  2. Contact Amazon Support

    • Open a case in Seller Central under Account Health & Payments.

    • Politely request an update on your final disbursement.

  3. Provide Required Documents

    • Amazon may ask for identity verification, invoices, or banking details to process payment.

  4. File a Formal Dispute

    • If Amazon refuses to release funds, you may escalate through:

      • Better Business Bureau (BBB) complaint

      • Amazon’s legal department

      • Small claims court (if applicable in your country)

If you need assistance recovering your funds, our team can help navigate the process. Contact us today for expert guidance.

Message us to see if we can help you; FREE CONSULTATION.

 

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