Selling limits on Amazon?


#1

Have any of you experience a situation as this, or are you currently experiencing it now?

I have learned that Amazon has limits on how much you can sell or make with in a months time. My understanding is that it starts at 10,000 a month, now whether this is gross or after their fees, I do not know. It seems that 10,000 would be lot, which it is, if you are selling high value items with a high profitability. Yet if selling only penny books, you could be at a profit of only 1-2000 a month.

So here is my story, and hope none criticize me for “looking” greedy. This is a home family business and so my families lively hood depends upon it

With that said, I have been on Amazon for over 7 years, progressively getting better at the game of buying and selling. We recently have transitioned away from media as a whole, due to over priced merchant fees associated with such items.

Recently our sales have sky rocketed as much as 90 items a day for a few days straight. Our items as most could see are typical household and toy items. Nothing manufactured by us or some overseas giant drop and ship company. Just basic items we find in town and from local distributors.

At the end of August, our account was put on review for no reason specified. I contacted Amazon and they could only tell me the obvious, my account was in review and no funds could be withdrawn for up to 30 days as the process takes place. As with all others whom have received the generic emails from Amazon with a list of things to do, I gave them the required info which was asked, took the associates recommendation as to send a letter and an email statement to said different departments in Amazon, describing my business practices, inventory tracking and so forth. There reason is to see how well a merchant I am and if my practices meet their “standards”. So after submitting this information, about an hour later and email came to me. stating that my account review process was over and I was allowed to continue selling as normal and no restrictions were put on the account.

Now before this review, we were averaging 290-300 sales a week and 75-90 a day for almost a month straight. This spike in sales was due to much new inventory we had listed and was a huge shock to us as the sales grew. We have continued to have the same inventory on hand, still best price on those items and have continued to list more items. Yet EVER SINCE that review process ended, our sales from that day to now have dropped to may 40-50 a day and sometimes 190-230 a week. Which was our average around Christmas time.

I have checked and double checked all the metrics and prices and listings etc to give me some reason for this HUGE drop over night. Nothing comes to me. The only thing is that Amazon sets limitations for sales. It was brought to my attention that it is because of the high spike in sales that triggered the review. We have not missed one item from being delivered in over a thousand items and have maintained above the average metrics they use for our ratings.

Now I am curious to know if there are limitations on our account since this review. I have contacted 3 different departments in Amazon inquiring about this limitation, and all have responded that our account is in excellent standing with NO limitations what so ever. (except we can not sell clothing, that is all).

Yet I have done a private investigation on my part with some help, and have found their answers to be misleading and perhaps false.

over a hundred of my items , have not come up for sale on amazon even though they show active listing. Some say in a persons checkout cart that the item is no longer available from us, a certain times of the day. All these items we have investigated on have continued to sell on and off, and are full of inventory. So I know they are active listings with much inventory. I am drafting a reply to Amazon with information and hope to get a straight answer from them.

So my question is to those who have hung on with me till now… is…

Have you ever been in this type of a situation with Amazon?

Thanks for your help.


#2

The more you sell the more Amazon makes. They don’t cap the amount you can sell.

The review is standard for Amazon. The fluctuation in sales is also standard. It seems the more you sell the more extreme the fluctuations are. I can have a record setting day followed by a slow day or slow week. I have studied it and can not come up with a solid reason. The fluctuations are more extreme than what I have experienced in real world retail or in the service industry.

The review are Amazon’s way of making sure you are on the up and up. They will have real human eyes look at your account. With the increase in sales, you got Amazon’s attention and they want to allow some time to make sure your not doing something that will hurt Amazon’s business.
You will go through reviews from time to time.

The level of sales that triggers a review seems to vary from category to category. If you sold items in categories that attract more fraud, you would have gone through this review a long time ago. We have read post where people have gone through the review after only making a few sales.
Now I’m going to check out what you sell so I can sell it too… (just kidding)

Congratulations on your success.


#3

No, I haven’t experienced what you are currently going through. But, then I haven’t
suddenly dropped out of media and gone into something radically new (product
category) either. That might have something to do with it. That, and the fact that
you may have grown too fast. It does sound as though you are "out of the woods"
at this point though. I think you’ll be alright as long as you pace yourself and don’t
have any more spikes in your sales volume.


#4

That seems to be common sense, I suppose since we have no other explanation as to why sales would drop almost by half since the review process, that we were to think Amazon had something to do with it.

We have looked at other possibilities as any other business would. We have experienced down times and obviously up times, yet if it is not Amazon’s tinkering, than it could only be that summer is over and routines are back in place. If that be the reason, and no limitations are on the account, than we look forward to an extremely busy Christmas season.

Hopefully your regards are correct.

Thank you Realdeals4every1 for your comments.


#5

We have always done quite well and have had very few hiccups along the road, however, as anyone would be concerned when sales go high and suddenly drop for a month straight following a review. We have no problem keeping up with the orders and keeping it going. Although funny thing… the associate at amazon even recommended that we raise our prices to be more competitive. You know… it is good thing he is where he is and I am where I am. We lower our prices to stay competitive and we always have done better with lower prices, not higher ones.

I can also say, I have had more issues with buying FBA products for personal use, than I have no issues.

I am just saying.


#6

Amazon is not withholding your listings. They do not do that. Their goal is the same as yours: offer as much as possible to the customers so they can buy as much as they want.

There is a possibility that there is a glitch in the system. It is an extremely low possibility. You can spot check your products to see if they are listed. Keep in mind that your pending orders are considered sold and not available for sale.

I just went through a velocity limit myself earlier in the week. It took 14 hours for them to increase my limit and was approved without Amazon contacting me. Sales went back to normal after that. I have been selling for a number of years and have been increasing sales, just like you, but with higher numbers.

Likely what happened in your case is you have either people are not interested in your product now or your items that people were interested in are now sold. It is normal for there to be ups and downs in sales.


#7

There is no limitation on how much you can sell a month. As you experienced a review, that was only a velocity limit, which has to do with money, and they approved you to move on. Normal check to make sure everything is ok.

If you list items, they should be for sale, Amazon does not prevent any of that. I understand you are wanting to know why your sales have dropped. But you sold quite a bit, now things are slowing down.

Thats part of business. You will not always sale as much as you did everyday. If you continue to have just as much or more inventory, you should be able to average what you have been, but there really is not
answer as to why people arent buying your items as fast as they were before.

Some days will be good, some days will be average, some days will not be so good. There is no answer for that.

If you items are not being shown in your inventory after you have listed them, then you need to contact support.


#8

I wanted to thank everyone who took the time to read and post a reply to me. I am really amazed by the responses I received from you all. I can tell that Amazon must have some of the best merchants in the world on their site. Much better customer service than Walmart could ever hope for, from the sounds of things. So again, thank you for your feedback to my question. I am not sure as to which one of you had the best answer for me, yet perhaps a combination of answers.

Thanks again.
Dan


#9

If you had tracked your sales over 7 years, you would probably see that Sept traditionally is a big slow down from August. It will pick up again mid-October.


closed #10