Amazon Seller Disbursement Hold

RFW

I know there are a few Amazon sellers on here. It appears that a lot of us have been hit with a check on whether we are UK based/VAT registered and having all funds held while this process takes place. Many of us had our accounts checked and verified within the last couple of months.

I'm currently in touch with someone in the media looking into this and they want to get in touch with other sellers. I've been selling on Amazon, Ebay and elsewhere for 20 years or more and post on here regularly.

Hoenir

Amazon's terms and conditions of trade requires all sellers to be compliant with all laws including VAT compliance.  HMRC can request seller information from Amazon. VAT compliance is a hot topic at the moment. 

RFW

Hoenir said:

Amazon's terms and conditions of trade requires all sellers to be compliant with all laws including VAT compliance.  HMRC can request seller information from Amazon. VAT compliance is a hot topic at the moment. 

That's not really relevant to this. This is a wholesale thing on multiple sellers, many of us were checked and verified within the last couple of months and have been regularly for years. Some within the last couple of weeks.

RFW

I'm told the Small Business Commissioner is speaking to Amazon about this on Tuesday. Hopefully we should start seeing something in the media about it this coming week.
Some sellers are really running into severe problems having had funds held for several weeks at an already tricky trading period.

Testaliger

There are literally hundreds, if not thousands of people caught up in this. Apparently HMRC have said that Amazon have been extremely heavy handed over this, and are not happy. Whether anything will get done is another matter, we all know Amazon are a law unto themselves

Testaliger

Hoenir said:

Amazon's terms and conditions of trade requires all sellers to be compliant with all laws including VAT compliance.  HMRC can request seller information from Amazon. VAT compliance is a hot topic at the moment.

I have no issue with the need for information re; VAT, but to cut off sellers cash flow, with zero warning is way over the top. I personally have over £2k tied up, but I know of others who have 5 and six figure sums frozen. It's killings small sellers (or maybe that's amazon's point - just re-affirming who's boss!)

RFW

Testaliger said:

Hoenir said:

Amazon's terms and conditions of trade requires all sellers to be compliant with all laws including VAT compliance.  HMRC can request seller information from Amazon. VAT compliance is a hot topic at the moment.

I have no issue with the need for information re; VAT, but to cut off sellers cash flow, with zero warning is way over the top. I personally have over £2k tied up, but I know of others who have 5 and six figure sums frozen. It's killings small sellers (or maybe that's amazon's point - just re-affirming who's boss!)

I'm about the same. I'm quite seasonal so I don't expect that much right now, although if it plays out to Easter then it could be disastrous. It's actually given me an opportunity to work on a new project which, if it takes off will see me mostly parting ways with Amazon.
I think Amazon probably are showing who's boss but more to HMRC than sellers, we're just getting caught in the net. Either that or, as I've seen a few suggest, they have cashflow issues and this is the quickest way to hold onto some, however unlikely that seems.
I've never had a compliance check where they hold funds, I've had the occasional hold to check for a new bank account or change of address but that was a day or two. This is them asking for an excessive amount of information and then asking for more when you send it.
Also worth noting that much the same thing happened in Germany in November and they later apologised.

RFW

Latest news story on this in The Telegraph. https://www.telegraph.co.uk/business/2024/02/04/amazon-told-government-unfreeze-funds-hundreds-sellers/

RFW

I've been hearing back from the Small Business Commissioner and my MP who had taken this up on my behalf. Despite being informed by someone in authority at Amazon that my account is fully verified and I can now disburse funds, 3 weeks on and they're still not available.

It's not a case of me having ever done anything wrong, there are hundreds and more likely thousands, of UK sellers in similar situations.

Over the last couple of years, as a seller, Amazon have become increasingly difficult to deal with. Up until last summer, when they announced quite a hefty (FBA) fee increase at short notice, I would have said they were the best platform for sellers. The stress of dealing with them of late is just not worth it.

the_lunatic_is_in_my_head

Haven't sold on Amazon for a few years but do remember the headache of dealing with CS as a seller, very much a case of computer says no and that's that.

These kind of decisions come from much higher up and the way they act in some cases simply demonstrates how much of hold they have over the market. 

Good for you for standing up for your yourself  

With the rise of Temu and things like Tiktok shopping I do wonder if they will manage to make a dent in Amazon, I think Amazon are lucky Facebook never set up a proper marketplace, or indeed that eBay failed so miserably with their marketplace over the years. 

Interesting they hiked the FBA fees, I guess the days of incentive pricing are long gone. 

soolin

I echo what @the_lunatic_is_in_my_head says, well done RFW for actually taking an active stance with this. It's the same for any site, they just expect sellers to put up with whatever changes, new rules, difficulties they have without recourse to any real assistance.

My own Amazon story is well known to the regulars on here. I sold on there successfully for years, then a good few years back they went through a new verification system. I have no issue at all with verification , I'd already done it with them a few times but this time the computer just kept saying no to me. The issue was that I am a sole trader so I trade in my own name , ie Soolin Smith so all my bank details, passport etc are obviously in my real name. My user name for selling purposes was different, lets say 'pink fluffy bunnies' and they asked me to prove that was me. They asked for official paperwork showing that was my name, I questioned that and they told me not to worry it was a glitch, I then got restricted as I failed verification. I contacted them again and was again told I needed a bank statement or official document showing pink fluffy bunnies- and again failed verification. I then uploaded a copy of my tax return showing a note that I traded on Amazon as Pink fluffy bunnies- they accepted that- then restricted me 2 weeks later as failing verification. I spoke to them and they were pleasant and always reassured me that this was a glitch and not to worry- but after a couple of months I just stopped trying and gave up selling .