The cross-border e-commerce community is on high alert as Amazon sellers anxiously await potential account verifications. This apprehension stems from Amazon's recent large-scale seller verification initiative, directly tied to the implementation of the new U.S. INFORM Consumers Act. The platform now has legal obligations to collect and verify seller information while making certain disclosures as required by law.
The INFORM Act: A Regulatory Sword Hanging Over Amazon Sellers
The INFORM Consumers Act aims to increase transparency in online marketplaces and combat the sale of counterfeit goods. It mandates e-commerce platforms to collect, verify, and disclose identity information for high-volume sellers, enabling consumers to better identify sellers and reduce fraud risks. For Amazon, this translates to stricter seller verification processes to ensure compliance.
Amazon's official announcement confirmed the verification process. Sellers who previously completed verification without information changes will be exempt, while others will receive verification emails with strict deadlines. Failure to comply may result in account suspension.
Who Faces Verification? Amazon's Compliance Thresholds
The verification primarily targets third-party sellers meeting both of these criteria:
- Sold 200 or more new items within any continuous 12-month period over the past 24 months
- Generated over $5,000 in total transactions
While sellers of high-priced, low-volume items might temporarily avoid scrutiny, industry estimates suggest over 90% of sellers will be affected. This move significantly raises marketplace entry barriers and accelerates industry consolidation.
Required Documentation: What Sellers Need to Prepare
The verification requires documents consistent with previous Amazon audits:
- Seller's legal name
- Government-issued identification
- Business address (with utility bill verification)
- Bank account information (with statement verification)
- Valid email address
- Active phone number and tax identification (business license)
Preparing these documents requires significant time investment, with accuracy being paramount. Submitting false information may lead to severe penalties, including permanent account termination.
Challenges and Opportunities: A Potential Market Reset
This verification presents both hurdles and prospects. While the process is cumbersome and risks temporary suspensions, it will eliminate non-compliant sellers, reduce malicious competition, and create a fairer marketplace for legitimate businesses.
Post-verification, Amazon's seller population will likely shrink, easing competitive pressures. With fewer fraudulent sellers, the platform environment should become more orderly, offering compliant sellers greater growth opportunities.
Proactive Compliance: Recommended Seller Strategies
Sellers should approach verification proactively:
- Prepare documentation in advance, ensuring all information is accurate and current
- Conduct comprehensive self-audits to address any compliance gaps
- Monitor Amazon's official communications for updates and deadlines
- Seek assistance from Amazon support or experienced sellers when needed
This verification represents an inevitable evolution in cross-border e-commerce. Only through compliance can sellers maintain competitive advantage. Rather than resisting the changes, successful sellers will view this as an opportunity to strengthen their market position while non-compliant operators face elimination.