Amazon taking up to 30 days to review price gouging appeals

 

Both preemptive and suspension appeals are lagging for weeks

Price gouging appeals to Amazon are lagging. Therefore, Amazon sellers under fire for price gouging could be waiting up to a month for a response from Seller Performance.

This shocking development comes after Amazon suspended or threatened to suspend thousands of accounts for alleged price gouging violations. Riverbend Consulting can confirm that one of our clients received approval of their Plan of Action yesterday – after almost 30 days of waiting.

Since mid-March, a growing number of Amazon third-party sellers have been warned for price gouging. In some cases, their individual ASINs have been blocked from the platform. After a few ASIN-level warnings, sellers then receive requests for a Plan of Action within 72 hours. The plan is to address violations of the Amazon Fair Market Pricing Policy. 

In some cases, Amazon skips all the second chances. They then take the seller straight to a suspension or block of their selling privileges.

 

Why is this happening?

Since Amazon is under pressure from the public and government regulators to stop price gouging during the current health crisis. Some state and local jurisdictions make it illegal to raise prices on essential items more than 10 percent during times of disaster.

Unfortunately, Amazon’s enforcement of its Fair Market Pricing Policy has been an unmitigated disaster in its own right. Many sellers have been warned or suspended for ASINs where they did not raise their prices or raised prices commensurate with their increased inputs for COGS, labor, transportation and more.

At Riverbend, we’ve seen several appeals for price gouging that have received answers after two to four weeks. In addition, for some suspended sellers, Amazon Seller Performance is sometimes rejecting the POA but not emailing the seller to let them know. So if you’ve had a price gouging appeal lingering, contact Account Health Services and ask for a status. You might just find out that you need to submit an updated POA.