Amazon is holding over 4.2 million dollars during a pandemic, suffocating our business!


#1

Can someone please help us here?! My partner and I have been selling on Amazon since 2013 with outstanding metrics. Our average net sales are over $1 million/month and we are by no means new or small sellers.

We started shipping a lot more than usual Merchant Fulfilled orders because of the situation with FBA, so the system flagged our account for a “velocity review” and they are now holding all of our funds — over $4.2 million dollars. We’ve sent Amazon multiple emails to multiple departments, pleading for help, including a spreadsheet of 200k+ orders with the associated tracking, all delivered on time with no issues.

They are refusing to disburse my funds while encouraging me to continue to sell and ship all of our orders on time. We cannot stay in business with all of our funds tied up suddenly and having to front everything. I sent emails to every department that I know of and have not had any success at all.

Why would Amazon, in the middle of a pandemic squeeze a business such as ours so hard that we cannot get ANY of our funds for goods sold or to pay our people. I understand risk mitigation, but this is over the top. Please mods, help us!


Am I under Velocity Review? 90%+ Held
Amazon SAS Account Management
#2

With those kind of numbers have you thought about a paid account rep??

Not sure if they can help, if not cancel.


#3

We have a SAM that we pay nearly $5,000 every month. We have been in contact with our SAM and his Manager as well, who have made some efforts to help, but have not made any progress with their internal escalations either.


#4

Amazon now has so many teams & divisions and it appears they can’t even talk to each other let alone us lowly sellers trying to get in contact with them.


#5

With this kind of money, why isn’t a lawyer involved?


#6

Wow, that is crazy… I cannot fathom how they can hold that amount of money without a personal contact. Unbelievable. Keep us posted. This is good for all of us to know. I hope it gets resolved quickly.


#7

Get rid of that rep.

Hire a lawyer ASAP. Get one that specializes dealing with Amazon.

The sooner the better.


#8

It is very sad and unfortunate. Small businesses like our own don’t have the capital to float 4M + dollars when we are paying for the product and shipping for our customers and getting nothing back. We are days away from being crippled by Amazon.


#9

We have also retained an attorney who has written to Amazon legal for help expediting but we have not heard back.


#10

@SEAmod can you look into this?
Not a good look when your $5000 a month Amazon Rep can’t help you.


#11

Thank you! It has been beyond stressful. We are now 15 days into this hold and we continue to fill orders for our customers in good faith that Amazon will resolve this for us. This can’t go on much longer though.


#12

A good laugh is always needed in high stress times like this.


#13

They are! Just have not heard anything back from them either.


#14

I am having the same issues with AMAZON.

I AM SICK OF AMAZON SUSPENDING ACCOUNTS THAN TAKING WEEKS FOR A RESPONSE.

HOW ABOUT AMAZON SELLER SUPPORT IS HELD TO THE SAME METRICS AS SELLERS PROVIDE TO CUSTOMERS ? 24 HOUR RESPONSE TIMES.

Customer <- Seller (1 DAY REPONSE TIME) <- seller support (haha minimum 4 weeks if we even decide to respond LOL).


#15

I understand we are in unprecedented times but sellers are suffering at an alarming rate. Small businesses like ourselves have placed our business and personal credit on the line in good faith that Amazon will resolve this quickly.


#16

That hold was likely triggered due to the velocity increase. The Amabots will kick in no matter what. TBH the timescale for resolution would be unknown, so make sure you don’t hit a cash flow crunch. If you ship orders for inventory purchased on credit from suppliers, there is no guarantee Amazon will have disbursed by the time payment is due. Honestly these days after the fake account attacks affected Amazon, running a business full time on normal business conventions isn’t that sustainable.

Personally I’d take a step back and think of long term. Probably you’ve been enjoying the higher sales volume, but if you have a cash flow crunch it could all be over. So maybe set account on vacation and wait for the disbursement. Just my .02


#17

I am just flabbergasted at the amount of amazon sellers making 12 million plus a year. Every month there is atleast 5 saying there is issues with amazon and they rake in millions upon millions a month. I thought our business was well off with the size of our operation but obviously we are doing something wrong…flip side to that is somehow all these sellers that are making trillions a month, keep getting in hot water with amazon and the rest skate by :thinking:
Not high jacking OP just an observation.


#18

It was a velocity spike, you are correct. Trust me this has crossed our mind but at this point, with everything we have invested personally, financially and a business, its hard to throw in the towel when we know we haven’t done anything wrong. It makes more sense to bring on investors and keep doing what we are doing. This isn’t a viable long term solution either as our burn rate to supply and front these products for customers is upwards of $200,000 per day sometimes.


#19

COVID is a large part of our business taking off so rapidly. We chose to invest in ourselves and go all in hoping that Amazon would be by our side and support us in the cause. We adapted to the huge influx in orders but are not getting the support we need clearly.


#20

Points taken. But going on vacation isn’t throwing in the towel. As soon as the funds hit your bank account, you can go back to selling again. Don’t forget that Amazon can decide not to disburse your funds if they so choose. Then you have to go to arbitration. Could get worse and worse.

My own view is the fake account attack pretty much finished off selling on Amazon (at least for us here). They are now too paranoid and basically the rule is don’t trust anyone. How can a seller run a small business like that.