Your High Sales on Amazon Could Backfire: Law Firm Aids Small Businesses that Face Scrutiny for Increased Sales Volume

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Due to the pandemic, many small businesses selling on Amazon have faced a surge in sales, which have triggered sales velocity review notifications.

LONG BEACH, NEW YORK, UNITED STATES, February 2, 2021 / — When a small business selling on Amazon has a rapid increase in sales, maybe due to popular demand, or in 2020, based on the insurgence of online shoppers, many shops have had what are called sales velocity review notifications. A seller receives this notification if their current sales volume is not supported by buyer feedback or their past established sales history. Amid the pandemic, many consumers have opted to shop online rather than in-person to lower their risk of contracting the coronavirus, which is understandable. This is a solid reason as to why a small business’s online sales volumes might be increasing, which is a great argument, should their account be suspended for suspected wrongdoing.

Sometimes, high sales can be purely circumstantial. For example, the winter months have arrived, and some products simply sell more during the colder season – like winter clothing, scarves, gloves, hats, etc. If an account is suspended because they saw an influx in seasonal sales, which the lawyers at Rosenbaum, Famularo & Segall, P.C. have seen happen, then reaching out to your seller platform, like Amazon, and explaining the seasonal nature of your products, can help get your account reinstated.

A sales velocity review notification indicates that your seller platform wants to see why there’s been an uptick in sales within the past few months or past year. Sometimes, sellers get this when they’re brand new. When you pass the limit of how many items Amazon believes you can reasonably sell in a certain timeframe (your “velocity limit“) it triggers a review of your entire business and sales history. During the velocity review, your account is suspended and you cannot resume sales until the review is complete.

According to Kerry McDonald, Senior Managing Paralegal at Rosenbaum, Famularo & Segall, P.C., “One reason Amazon freezes sales is to prevent sellers from receiving more orders than they can fulfill properly. Amazon looks for customer feedback as evidence that the orders were accurate and successful. So, it is prudent for sellers to request feedback from buyers for more reasons than just getting the buy box.”

Once a seller receives a sales velocity review notification, they will need to supply sourcing information about the Amazon Standard Identification Number (ASIN) recently sold, tracking information for recent orders, their business address, a little history about their business, and several other details of that nature. The business under review must provide this information to Amazon, along with the reason for any unusual sales activity, to lift the suspension. If the information provided is satisfactory, it will usually resolve the issue. However, the process can take up to a week or even longer.

A final note from McDonald is that “providing the right information the first time is vital if you want to get back to selling as soon as possible.”

Melissa Pelletier
Rosenbaum, Famularo & Segall, P.C.
+1 212-321-5176
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