Selling on Amazon isn’t just about good products and smart advertising — it’s about compliance. One listing mistake can cost you your entire account. Many sellers underestimate Amazon’s restrictions until they face a suspension notice and thousands of dollars in frozen payments.
Let’s make sure that never happens to you.
1. Understand the Three Levels of Amazon Restrictions
Amazon classifies product limitations into prohibited, restricted (gated), and brand-gated categories.
- Prohibited products are completely banned. Think explosives, weapons, tobacco, counterfeit goods, or offensive materials. Listing them can lead to immediate account termination.
- Restricted (gated) products are allowed only with prior approval. This includes medical devices, supplements, cosmetics, and baby products. You’ll need documentation, regulatory compliance, and often invoices from approved suppliers.
- Brand-gated products require authorization to sell. Major brands like Apple, Lego, or Nike demand proof of distribution rights and authentic purchase invoices.
✅ Pro Tip: Before sourcing, always search your product in Seller Central’s “Add a Product” tool. If it shows a “Requires Approval” badge, don’t list it until you’ve completed the ungating process.
2. Real Case: The $8,000 Mistake
A seller I worked with sourced fitness supplements from a domestic wholesaler. The products were genuine — but not from an authorized distributor.
Within two weeks of listing, the account was suspended under “Restricted Product Policy Violation.”
Amazon destroyed the FBA inventory, withheld funds, and demanded proof of regulatory compliance.
After weeks of appeals and documentation, the account was reinstated — but the losses were permanent.
The lesson?
Authorization matters as much as authenticity.
Even if a product is real, selling it without proper approval can trigger the same penalties as selling counterfeit goods.
3. Navigating Compliance in European Markets
Expanding to Europe adds another layer of complexity.
Amazon operates unified accounts across six main marketplaces — Germany, UK, France, Italy, Spain, and the Netherlands.
But each has unique product and tax regulations.
Here’s what you need to cover before listing:
- VAT registration: If you store or sell products within an EU country, you must register for VAT in that country.
- Importer of Record (IOR): Someone must be responsible for customs declarations and import taxes.
- Language and returns: If you fulfill orders yourself (FBM), you must provide local-language support and a local return address.
- FBA advantage: Using Fulfillment by Amazon (FBA) covers customer service, local compliance, and returns — a massive relief when selling across borders.
⚙️ Pro Tip: Always verify if your product meets EU safety and labeling standards (like CE marking or cosmetic registration) before shipping inventory to Europe.
4. What to Do if You Get Suspended
If Amazon suspends your account, don’t panic — but don’t rush, either.
Every appeal must include a Plan of Action (POA) with three clear parts:
- Root Cause – What went wrong.
- Corrective Actions – What you fixed.
- Preventive Measures – How you’ll avoid it in the future.
Be factual, concise, and humble. Avoid emotional language or blaming Amazon.
If your case involves restricted products, remove them immediately and gather all documentation (invoices, compliance certificates, brand authorizations).
A solid POA can get you reinstated in 7–14 days.
5. Build a Compliance Routine
Think of compliance like a pre-flight checklist.
Before each product launch:
- Verify if it’s prohibited, restricted, or brand-gated.
- Confirm supplier legitimacy and documentation.
- Check country-specific import and labeling laws.
- Review category requirements inside Seller Central.
Skipping this process is like flying blind — and Amazon doesn’t offer second chances lightly.
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