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Tell HN: Amazon has deactivated my seller account

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Re: Tell HN: Amazon has deactivated my seller account

#71
post #46
post #40

Earlier quoted context omitted.

I sell on both platforms. >Would Walmart take a lower fee? No, it would be the same as Amazon. Walmart charges less in two ways: * No monthly membership fee. * Seemingly random fee discounts, up to and including 0%. More than once I've sold an item early in a day, then sold it again later that day with a different fee percentage. >Would Walmart give back its fee if the customer sent the product back for a refund? Whe…

This was 3-4 years ago, so it's possible that they've improved since then or that the rep I was speaking to was misinformed, but at the time, he told me there was no fee advantage on Walmart Marketplace, and I tried to be polite in my reaction of, "Then, why would you be an attractive alternative?"

Some reasons for switching are in the OP and in other comments in this subthread. What about those?

Re: Tell HN: Amazon has deactivated my seller account

#72
post #54

Earlier quoted context omitted.

>We've got ours since 2018 and when we balked on the price they just waived the fees You must be in the seven figures revenuewise or higher. I am not, and can't imagine getting the fee waved. That said, what I've heard about having an Amazon account manager: It's just another layer of the same of the usual awful seller support. Since the "manager" can't actually do anything, having one is worse than not having one.

Yeah, low 8s on Amazon. They already take ~50% of our revenue for all expenses, the SASCore person is a drop in the bucket for them. We also do B&M and website sales which have way less hassle or much lower expenses, but get nowhere near the traffic of Amazon, so that's why we deal with 'em...

>They already take 50%+ of our revenue for all expenses

As mentioned my revenue is far smaller, so I need larger margins. My total marketplace fees plus shipping spend in 2025 was 26% of revenue. My net margin was 28%, but the metric I focus on is margin on COGS; that was 60% in 2025 and 54% lifetime.

Hearing your account and that of another seller with close to seven figures revenue makes me think I should aim for smaller margins. Not as small as yours, but maybe 10% smaller.

>We also do B&M and website sales which have way less hassle or much lower expenses, but get nowhere near the traffic of Amazon, so that's why we deal with 'em...

My Walmart revenue equaled Amazon's in 2025.

I've thought about opening my own website. On the one hand my multichannel software already supports such, so it would be from that perspective just another marketplace. On the other hand, besides the additional cost and hassle, I keep coming back to how difficult it is to match the Amazons and Walmarts of the world in terms of customer reach.

Re: Tell HN: Amazon has deactivated my seller account

#73

Good luck. Amazon banned my seller account 7 years ago because my wife, who was also an amazon seller, used our shared CC (which has my name on it, although she's an authorized user) to pay her $45/month seller fee. The account had $48,000 in it at the time I was banned, and I was never able to get the money back; after an endless number of hours of pleads with their teams, mails to jeff@amazon, working on it from th…

I feel this is def solvable these days -- but the 7 years thing is gonna be tough to overcome at this point.

What I've done on some of these "need to escalate to a human" issues is to buy a ticket to Amazon Accelerate (in Seattle every September), book a Seller Cafe appointment to talk to a leadership team person (I think recently got moved to the captive escalations department), and get someone to talk to face to face.

I know it sounds dumb but I've solved issues that were costing my company 7fig/year sales like this.

Re: Tell HN: Amazon has deactivated my seller account

#74
post #72

Earlier quoted context omitted.

Yeah, low 8s on Amazon. They already take ~50% of our revenue for all expenses, the SASCore person is a drop in the bucket for them. We also do B&M and website sales which have way less hassle or much lower expenses, but get nowhere near the traffic of Amazon, so that's why we deal with 'em...

>They already take 50%+ of our revenue for all expenses As mentioned my revenue is far smaller, so I need larger margins. My total marketplace fees plus shipping spend in 2025 was 26% of revenue. My net margin was 28%, but the metric I focus on is margin on COGS; that was 60% in 2025 and 54% lifetime. Hearing your account and that of another seller with close to seven figures revenue makes me think I should aim for s…

My fees are high but my COGS are low -- they're typically We make ~30% before labor and net 10-20% after everything so it works OK. Most bigger sellers I know live in the 10-30% net range.

Our Walmart store is pretty sad, cross product lines we sell between 1-10% of our rev on Amazon :( ... but that's also because our products (home and kitchen) have lower cost competitors on Walmart itself. We're the mid-premium product, which is a much better position on Amazon and the right marketplace fit.

Re: Tell HN: Amazon has deactivated my seller account

#75
post #72

Earlier quoted context omitted.

>They already take 50%+ of our revenue for all expenses As mentioned my revenue is far smaller, so I need larger margins. My total marketplace fees plus shipping spend in 2025 was 26% of revenue. My net margin was 28%, but the metric I focus on is margin on COGS; that was 60% in 2025 and 54% lifetime. Hearing your account and that of another seller with close to seven figures revenue makes me think I should aim for s…

My fees are high but my COGS are low -- they're typically We make ~30% before labor and net 10-20% after everything so it works OK. Most bigger sellers I know live in the 10-30% net range. Our Walmart store is pretty sad, cross product lines we sell between 1-10% of our rev on Amazon :( ... but that's also because our products (home and kitchen) have lower cost competitors on Walmart itself. We're the mid-premium pro…

> My fees are high but my COGS are low -- they're typically 45% for me in 2025.

>but our typical unit pricing is $59 ASP in 2025 ($63 average revenue per sale).

>Most bigger sellers I know live in the 10-30% net range.

Yes, that's the impression I've gotten of the marketplace megasellers, of 10% margins being the norm. Not quite the old dotcom joke of losing money on every sale but making it up on volume, but you know what I mean.

>but that's also because our products (home and kitchen) have lower cost competitors on Walmart itself. We're the mid-premium product, which is a much better position on Amazon and the right marketplace fit

That's interesting; I would have thought that Amazon would have more sellers across price points. Walmart has more Chinese sellers with gibberish brand names than before thanks to a noticeable loosening of application criteria, but still fewer than Amazon. Are competitors at your price point not present on Amazon but are present on Walmart? Or they are present on both, but for whatever reason (advertising, FBA/FBM differential) your listings get relatively more visibility on Amazon?

Re: Tell HN: Amazon has deactivated my seller account

#77

I think people would be surprised what is on the internal seller forums. There is really like a huge amount of issues that Amazon fails to help with. Literally everything from onboarding to protecting sellers from refund scams. I suspect big sellers must have dedicated account managers

When you look at a forum like that you have to realize that the actual scammers also post convincing complaints (omitting incriminating details). They likely outnumber the legitimate cases. It's all part of gaming the system.

This seems pretty unlikely. Running scams on Amazon requires quite a bit more effort than on Ebay, so the scams tend to be more professional.

Professional scammers are not likely to waste their time complaining on forums.

Re: Tell HN: Amazon has deactivated my seller account

#78
post #19

Earlier quoted context omitted.

I used to work for a large Amazon Seller (>$100m per year revenue) who got automatically deactivated with no warning and it took them a week to get re-activated. We are talking a very minor infraction - It was something like one of their marketing copywriters putting 'refills can be purchased on our website' on one of their thousands of listings, and Amazon delisting their entire account on the basis that this was mo…

> We are talking a very minor infraction - It was something like one of their marketing copywriters putting 'refills can be purchased on our website' on one of their thousands of listings, and Amazon delisting their entire account on the basis that this was moving customers off their platform. No warning - permenant ban that took over a week to remove - c$2m revenue loss (I've changed the details here significantly t…

>Amazon right now feels to me like a large landlord seeking rent kicking people for no reason because they didn't like that some person spilled some water.

At Amazon scale they have people firehosing water and complaining about it, people punching holes in the roof causing water leaks, people messing with the pipes causing water leak, it's a lot, so they just wrote "ban water on floor bot" which clears 95% of the scammers and 5% of the innocents who had a small spill. Which sounds innocuous but, again, at scale, 5% of the innocents is a damn lot of people

Re: Tell HN: Amazon has deactivated my seller account

#79
post #75

Earlier quoted context omitted.

My fees are high but my COGS are low -- they're typically We make ~30% before labor and net 10-20% after everything so it works OK. Most bigger sellers I know live in the 10-30% net range. Our Walmart store is pretty sad, cross product lines we sell between 1-10% of our rev on Amazon :( ... but that's also because our products (home and kitchen) have lower cost competitors on Walmart itself. We're the mid-premium pro…

> My fees are high but my COGS are low -- they're typically 45% for me in 2025. >but our typical unit pricing is $59 ASP in 2025 ($63 average revenue per sale). >Most bigger sellers I know live in the 10-30% net range. Yes, that's the impression I've gotten of the marketplace megasellers, of 10% margins being the norm. Not quite the old dotcom joke of losing money on every sale but making it up on volume, but you kno…

For my product niche, Amazon has (many) more buyers at my pricepoint and value prop (moderately well-designed kitchen gadgets at a price point between your run-on-the-mill gadget and OXO).

Maybe I also know how to SEO better on Amazon vs Walmart, but not sure! ¯\(°_o)/¯

Re: Tell HN: Amazon has deactivated my seller account

#80
post #75

Earlier quoted context omitted.

> My fees are high but my COGS are low -- they're typically 45% for me in 2025. >but our typical unit pricing is $59 ASP in 2025 ($63 average revenue per sale). >Most bigger sellers I know live in the 10-30% net range. Yes, that's the impression I've gotten of the marketplace megasellers, of 10% margins being the norm. Not quite the old dotcom joke of losing money on every sale but making it up on volume, but you kno…

For my product niche, Amazon has (many) more buyers at my pricepoint and value prop (moderately well-designed kitchen gadgets at a price point between your run-on-the-mill gadget and OXO). Maybe I also know how to SEO better on Amazon vs Walmart, but not sure! ¯\(°_o)/¯

> For my product niche, Amazon has (many) more buyers at my pricepoint and value prop

I see. Thank you for the comparative rundown; very interesting.

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