Remember when opening an Amazon store was as simple as presenting an ID card? That era has officially ended. Amazon has implemented a significant policy change: the platform will no longer accept new seller account registrations from individual business operators across all global marketplaces. This unexpected move has sent shockwaves through the e-commerce community, particularly affecting sellers planning to expand their operations.
Policy Change: Individual Seller Registrations Halted
Multiple seller reports and confirmation from Amazon's recruitment managers reveal that the platform has globally suspended new account registrations for individual business operators. Existing unactivated accounts from individual registrants will also be blocked from activation. This policy tightening represents Amazon's latest effort to raise its marketplace entry barriers.
Analyzing the Policy Shift
Several factors likely contributed to Amazon's decision:
- Platform Standardization: With explosive growth in cross-border e-commerce, Amazon faces increasing challenges in managing sellers of varying qualifications. Higher registration thresholds help filter out potentially non-compliant operators.
- Brand Development Focus: Amazon has consistently encouraged brand-oriented operations. Corporate-registered accounts offer advantages in brand registration and trademark protection, aligning with Amazon's strategic direction.
- Tax Compliance: As global tax regulations for e-commerce tighten, corporate accounts demonstrate clearer financial structures and compliance capabilities compared to individual operations.
Market Impact
The policy change carries multiple implications:
- New sellers must now establish corporate entities before registering, increasing initial costs and administrative complexity.
- Existing individual sellers face potential future scrutiny and possible mandatory conversion to corporate accounts.
- Sellers operating multiple individual accounts risk platform audits and potential account termination.
- The competitive landscape may shift toward established brands and corporate sellers, potentially reducing marketplace fragmentation.
Strategic Responses for Sellers
Sellers should consider these adaptive measures:
For existing individual account holders:
- Maintain strict compliance with Amazon's operating guidelines
- Monitor policy updates for potential requirement changes
- Evaluate transitioning to corporate registration when feasible
For prospective new sellers:
- Complete corporate registration before application
- Prepare comprehensive, authentic documentation for verification
- Thoroughly review Amazon's operating policies before registration
Brand development strategies:
- Secure trademarks to establish brand identity
- Develop quality products with strong differentiation
- Implement coordinated brand promotion across channels
Key Considerations for Amazon Sellers
Initial investment requirements: Startup costs vary by product category and operational approach, typically including registration fees, inventory procurement, logistics, marketing, and overhead expenses.
Profitability outlook: Success depends on product selection, operational execution, and market conditions. While competitive, the marketplace continues to offer substantial earning potential for well-positioned sellers.
Account type selection: Individual selling plans suit low-volume sellers (pay-per-sale), while professional plans (monthly subscription) benefit higher-volume operations through reduced per-transaction fees.
Registration process: Current procedures involve document preparation, information submission, identity verification, and platform review stages requiring accurate, complete information.
Application rejection: Failed initial reviews require careful analysis of rejection reasons, documentation adjustments, and potentially professional consultation before resubmission.
Amazon's policy evolution reflects the platform's maturation and increasing regulatory complexity. Sellers must adapt to these heightened requirements through strategic planning, operational excellence, and continuous compliance monitoring to maintain competitive positioning in this dynamic marketplace.