The Amazon Prime Day sale is fast approaching, but every year, just before the peak season, there’s a wave of account suspensions.
Recently, some sellers have reported that their shipping privileges were suspended due to warehouse locking by service providers, resulting not only in held-up shipments but also in fines of up to $6,000! According to the emails received, this penalty was triggered by an audit of “inbound defect fees” due to warehouse locking.
With the “big battle” approaching, sellers must pay close attention to inbound defect issues!
There are two main factors that can lead to inbound defects according to Amazon’s policies:
Shipping to the wrong location:
This is self-explanatory. Goods allocated to ONT9 in a confirmed inbound plan cannot be sent to ONT8.
Deleted and discarded shipments:
If shipments that have been deleted or discarded are sent to FBA warehouses and Amazon reluctantly accepts them, sellers will have to pay an inbound defect fee. So, what causes shipments to be deleted?
Remember these two “time periods”:
– 45 days and 75 days: Domestic shipments that do not arrive within 45 days of creating the shipment and international shipments that do not arrive within 75 days of creating the shipment will be automatically closed.
– 30 days: For multiple destination inbound plans, shipments that do not arrive at our operations center within 30 days after the first shipment arrives will be automatically closed.
Note：When creating shipments using Amazon API or third-party ERP, only confirming part of the shipments in the inbound plan can also lead to the problem of shipments being abandoned, resulting in inbound defect fees and recalculating the inbound configuration service fee based on the actual number and location of received shipments.
For example, if you create an Amazon-optimized inbound plan (5 shipments) but only confirm and complete one of them, Amazon will charge you a single-point inbound fee. You will have to pay an inbound defect fee for the other 4 shipments that you abandon.In addition, there is one situation that needs special attention: Suppose you create an international shipment and Amazon divides it into 3 warehouses. That means each of the 3 warehouses originally has 75 days to receive the goods, but if one of the warehouses on the US West Coast receives the goods particularly quickly, within 30 days, it means that the other 2 warehouses only have 30+30=60 days left to receive the goods. If they don’t receive the goods on the 61st day, they will be closed.
Here are some tips to avoid inbound defects:
– Choosing a stable and reliable cross-border logistics provider is key! Amazon recommends using the Amazon cross-border carrier partner program (Amazon SEND) to ship to FBA operation centers during peak season, which ensures stable fulfillment and helps achieve inbound performance.
– How to avoid shipments being delivered to the wrong location
To avoid shipping to the wrong location, carefully check the shipment labels and the operation center and address in the system before shipping to avoid shipping to the wrong address due to incorrect labels.
If you use a third-party logistics company, be sure to confirm and track the operation center where the shipment is expected to be sent. This can prevent the shipment from being sent to the wrong location due to the logistics company mixing up shipments.
Here’s the information you need to prepare for registration:
1. Business License (It must be real, ongoing, and searchable in the business bureau’s database for a limited liability company. Individual businesses are currently not accepted.)
2. Legal person’s ID card (It must be real and within the validity period.)
3. Foreign currency credit card (Any bank’s VISA/Master credit card that supports foreign currency deductions is acceptable.)
4. Overseas bank account for receiving payments (Choose either Amazon’s official payment service or a third-party payment company’s receiving account.)
5. Factory sellers are advised to prepare factory certification or product certification or factory inspection reports. Brand sellers are advised to prepare overseas trademark R mark or TM mark receipts.
Preparation of KYC information for Europe:
European sellers will definitely go through KYC verification, so prepare the information before registration.
1. Business License
2. Legal person and shareholder’s ID card and household registration book
3. Personal bills of the legal person and shareholders (such as credit card bills)
4. Proof of bank account ownership (bank’s public account or payment service provider’s receiving account statement)
5. Company charter (provided as needed)
6. Legal person authorization letter (provided when the primary contact person is not the legal person)
Preparation of second review information:
This might be triggered for different sites, so it’s advised to prepare the information in advance.
1. Business License
2. Public utility bills under the name of the company or legal person (Water, electricity, gas, or any broadband bill)
Tips:
1. Encourage the use of one set of information to register for multiple country sites: Currently, there is a $39.99 monthly rental discount for registering multiple country sites. The more sites you register, the more cost-effective it is. It’s recommended to use one set of information to register for multiple sites. Europe, America, Japan, and Australia can be opened simultaneously with one email, while Middle East, Singapore, and India need separate new emails.
2. Use the “Simulated Registration Platform” tool for pre-rehearsal registration: This software realistically reproduces the registration process and the required information. Familiarize yourself with Amazon’s registration process in advance. The website will provide a set of virtual information for sellers to register. Do not use real information.
3. Keep up with the pace of Amazon’s official manager: Register as soon as you receive the registration link, and get your products online and send FBA as soon as you pass the review. Don’t delay, don’t let your shop idle.
14 May, 2024
