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For over two decades, Amazon has been a critical platform for independent sellers worldwide. However, recent accounts from long-time sellers reveal a troubling narrative of diminishing support, increasingly punitive policies, and opaque decision-making processes. For many, the very platform that once provided unparalleled access to customers has now become an adversarial environment.

A System Stacked Against Sellers

A recurring theme from sellers is that policies meant to ensure compliance or improve customer experience are often implemented haphazardly, with little regard for the unique challenges sellers face. One seller lamented, “Amazon’s demands for testing compliance have derailed my fashion jewelry business after 15 years. Despite my products never being marketed to children, the platform insists they meet regulations for children’s jewelry. My appeals are being rejected without explanation.”

For some, this is a pattern. Many sellers claim Amazon disproportionately targets smaller businesses with strict enforcement while allowing mass-market overseas sellers to operate unchecked. Others describe arbitrary account suspensions, often accompanied by vague or contradictory messages. Even when sellers supply requested documentation, their cases frequently stall or end in bot-generated denials.

Amazon’s Arbitrary Policies

Amazon has completely arbitrary policies that they themselves don’t follow and that seem to boil down to the person who is enforcing them and their understanding. They will accept or reject or issue violations at any time for any reason and can close your account with no warning. Sellers frequently express frustration at this unpredictability, as even long-standing accounts in good standing can find themselves suddenly deactivated without explanation.

Punished for the Uncontrollable

The introduction of new metrics like the On-Time Delivery Rate (OTDR) has added another layer of stress for sellers. As one frustrated seller pointed out, “Natural disasters, carrier delays—things entirely out of our control—can now result in account deactivation.” This change, they argue, incentivizes sellers to move toward Amazon’s Fulfilled By Amazon (FBA) service, where Amazon handles logistics but charges steep fees.

A handmade goods seller voiced similar frustrations. “I’m penalized for not shipping faster, even when I meet the promised timeline. Amazon’s automation doesn’t consider the human aspect of handmade goods.”

Customer Service: A Black Hole

Sellers repeatedly describe Amazon’s customer service as virtually unreachable. “You submit a case, and it feels like it goes into a void,” one seller explained. Many recount experiences of receiving only generic, automated responses or having their cases escalated endlessly without resolution. Even when sellers manage to reach a representative, they’re often met with contradictory instructions, further delaying solutions. “It’s like talking to a wall,” another seller said. “Amazon wants your money but refuses to offer real support when issues arise.”

The Importance of Building an Email List

Given Amazon’s unpredictability and lack of support, savvy sellers are encouraging others to build their own email lists. By capturing customer information and cultivating relationships outside of Amazon, sellers can create a safety net. “You need to take control of your business,” one seller advised. “Amazon may have the traffic, but your email list is the only thing you truly own. It’s your direct line to customers when things go south.”

This approach allows sellers to stay connected to their audience, promote new products, and pivot their strategies without being entirely reliant on Amazon’s platform.

Cash Flow Nightmares

One of the most significant complaints centers on the platform’s handling of seller funds. Numerous accounts detail Amazon holding thousands—or even millions—of dollars in reserves for extended periods. Sellers unable to access their funds face cascading issues, from paying employees to purchasing inventory. One business shared, “Our funds have been held for six months without explanation, despite maintaining a healthy account. Reaching support is futile; every case gets transferred endlessly.”

Another seller emphasized the devastating consequences of fund freezes during peak seasons. “Amazon’s reserve policies forced us to halt operations during the holiday season. They hold all the power, and we’re left scrambling.”

Opaque Processes Breed Distrust

Sellers also report confusion and despair over Amazon’s lack of transparency. For instance, some claim their listings are arbitrarily flagged as counterfeit or incorrectly classified, with little recourse to challenge such decisions. One seller shared, “Our branded product was suddenly hijacked by another brand. Amazon demands we prove ownership of the listing we created years ago, yet the fraudulent party doesn’t need to prove anything.”

In another case, a seller’s product was incorrectly labeled as a “meltable item,” blocking them from shipping to FBA. Despite providing proof otherwise, the issue remained unresolved for weeks, costing the seller thousands of dollars.

Is Amazon Pushing Sellers Out?

Increasingly, sellers are questioning whether Amazon is intentionally marginalizing third-party sellers. Many cite rising fees, stricter enforcement, and growing competition from Amazon’s private-label brands. “It feels like death by a thousand cuts,” said one seller. “The changes seem designed to make it harder for independent businesses to survive.”

What Needs to Change

Sellers are calling for Amazon to implement several reforms, including:

1. Improved Communication: A streamlined and transparent process for resolving disputes.
2. Balanced Enforcement: Equal application of policies to all sellers, regardless of size or location.
3. Fair Metrics: Adjustments to metrics like OTDR to account for external factors.
4. Access to Funds: A consistent and fair approach to fund disbursement.

Conclusion

Amazon’s marketplace remains a powerful tool for connecting sellers and buyers. Yet, these testimonials reveal cracks in its foundation, leaving independent sellers struggling to navigate an increasingly hostile system. If these issues go unaddressed, the platform risks losing the very community that helped build its empire.