Permanently withheld funds (£7,986.05) after 90 days – Our story, the "Arbitrage Trap," and the final rejection
Hello everyone,
I wanted to share our story, warn other sellers about a major compliance trap, and ask for any final advice from veteran sellers or Community Managers regarding the permanent withholding of our funds (£7,986.05).
Our Background & Quick Growth
Although our company has only been selling on Amazon for less than a year, we are not newcomers. We spent years managing Amazon accounts for other established sellers. When we launched our own store, everything went smoothly, and we did incredibly well right out of the gate.
The Post-Christmas Suspension
Suddenly, right after the peak Christmas season—exactly when our account held a large amount of reserve funds—Amazon suspended us. The notification claimed we were engaging in "deceptive, fraudulent, or illegal activity."The trigger was our sourcing model. While we use legitimate wholesalers, we also occasionally purchase special, official, big-name calendars from large online retail shops to resell. Because these are official, licensed products, they are absolutely not counterfeit. However, Amazon's stance is that because we do not have direct brand authorization letters to sell them on Amazon, it triggers an automatic policy violation.
The Invoices and the Reality
We complied with every single request Amazon made. We submitted official invoices, supplier details, bank statements, and full supply chain tracking. Sadly, our inventory is now sitting in our warehouse as expensive paper rubbish, and we have been forced to give up on ever selling on Amazon again. We are moving our business entirely to other platforms.
The 90-Day Funds Denied Email
We waited out the mandatory 90 days and formally requested the release of our earned funds. A few days later, Amazon sent us this final, generic refusal:
"After completing our investigation and reviewing the information you provided, we have determined that you are using your account to engage in deceptive, fraudulent, or illegal activity... due to the violation of the 'Amazon Anti-Counterfeiting Policy'."
In English law, withholding earned funds indefinitely without a court judgment based on unproven, automated policy assertions is considered unlawful conversion (civil theft). Amazon is acting as judge, jury, and executioner with small business capital.
My Questions to the Forum:
1: For Sellers:
Have any of you successfully fought this specific "Anti-Counterfeiting Policy" funds block on retail-sourced / arbitrage items after the 90-day mark?
2: For Community Managers:
Can an actual human review this case history? We have provided legitimate proof of purchase for official items. Forcing a permanent financial forfeiture without detailing a single fake item is incredibly unjust.
Thank you for reading, and be very careful with online or retail sourcing on this platform.
Permanently withheld funds (£7,986.05) after 90 days – Our story, the "Arbitrage Trap," and the final rejection
Hello everyone,
I wanted to share our story, warn other sellers about a major compliance trap, and ask for any final advice from veteran sellers or Community Managers regarding the permanent withholding of our funds (£7,986.05).
Our Background & Quick Growth
Although our company has only been selling on Amazon for less than a year, we are not newcomers. We spent years managing Amazon accounts for other established sellers. When we launched our own store, everything went smoothly, and we did incredibly well right out of the gate.
The Post-Christmas Suspension
Suddenly, right after the peak Christmas season—exactly when our account held a large amount of reserve funds—Amazon suspended us. The notification claimed we were engaging in "deceptive, fraudulent, or illegal activity."The trigger was our sourcing model. While we use legitimate wholesalers, we also occasionally purchase special, official, big-name calendars from large online retail shops to resell. Because these are official, licensed products, they are absolutely not counterfeit. However, Amazon's stance is that because we do not have direct brand authorization letters to sell them on Amazon, it triggers an automatic policy violation.
The Invoices and the Reality
We complied with every single request Amazon made. We submitted official invoices, supplier details, bank statements, and full supply chain tracking. Sadly, our inventory is now sitting in our warehouse as expensive paper rubbish, and we have been forced to give up on ever selling on Amazon again. We are moving our business entirely to other platforms.
The 90-Day Funds Denied Email
We waited out the mandatory 90 days and formally requested the release of our earned funds. A few days later, Amazon sent us this final, generic refusal:
"After completing our investigation and reviewing the information you provided, we have determined that you are using your account to engage in deceptive, fraudulent, or illegal activity... due to the violation of the 'Amazon Anti-Counterfeiting Policy'."
In English law, withholding earned funds indefinitely without a court judgment based on unproven, automated policy assertions is considered unlawful conversion (civil theft). Amazon is acting as judge, jury, and executioner with small business capital.
My Questions to the Forum:
1: For Sellers:
Have any of you successfully fought this specific "Anti-Counterfeiting Policy" funds block on retail-sourced / arbitrage items after the 90-day mark?
2: For Community Managers:
Can an actual human review this case history? We have provided legitimate proof of purchase for official items. Forcing a permanent financial forfeiture without detailing a single fake item is incredibly unjust.
Thank you for reading, and be very careful with online or retail sourcing on this platform.
11 replies
Seller_0XWc3TbYeT9US
This is horrendous (and, as I'm sure you're aware, not untypical). So sorry.
I have no history of getting this overturned, regretfully, I can only suggest sending Amazon a letter of intent, instigating court action, and taking the time to report the matter to the Competition & Markets Authority as Amazon's retention of third-party funds without right or cause.
Seller_d8YGbIjNqwFxn
Is there more to it than this. Amazon wouldn't have known that you were sourcing the calendars via a retail store. Was there a complaint from the brand owner or from a customer which triggered the violation?
Despite an Amazon Mod saying Retail Arbitrage is okay it comes with risks if you do not have the correct invoices.
Licensed products are even more problematic as you sometimes need a licensing agreement from the manufacturer to show they are allowed to use the license. An invoice on its own is not always enough,
You can look at mediation to resolve this, this is for challenging decisions made by Amazon. You can also look at legal action to recover the money.
Seller_MFpzSIm72KtOH
Hello Amazon Team,
We request a manual review and release of £7,986.05 currently withheld.
Our account was suspended for alleged “deceptive/fraudulent/illegal activity” referencing Anti-Counterfeiting Policy. We have never been provided any ASIN, complaint ID, test buy, or customer claim identifying counterfeit goods.
We submitted complete supply-chain documentation for the licensed calendars sold. No rights owner has contacted us via Amazon, and we received no authenticity-related A-to-z claims or chargebacks.
We accept Amazon may require brand-authorized invoices for selling privileges. However, indefinite withholding of earned funds requires specific findings of counterfeit or customer harm. None have been presented.
Please either:
Provide the ASIN(s), complaint ID(s), and evidence underpinning a counterfeit determination; or
Release the undisputed funds (net of refunds/chargebacks) within 7 days.
Attached is a single indexed PDF with our timeline, ASIN list, invoices/receipts, bank proofs, supplier credentials, and product photos.
Thank you.
Seller_soBD2wwhsVOww
The only option is to take Amazon to the Small Claims Court,I have no doubt you would win & recover your funds plus all expenses.
First step is a Letter Before Action (templates online) to:
The Legal Department
Amazon UK
1 Principal Place
Worship Street
London EC2A 2FA
Seller_KlbXZHzQGSDZv
Is it £7000 worth of calenders bought through retailers presumably after xmas when they are knocking them out to clear shelves or does include other sales for which you have "genuine" invoice from Wholesalers.
If its all retail purchases then you have broken Amazons rules (despite what 1 mod was posting this year about retail arbitrage (which was why so many on here queried him and were told oh no its ok) Its ok until its not and then you have broken Amazons rules and are there fore in a very sticky position.
One possible outcome may be the eating of the Humble pie acknowledge you had erred(sp) and ask for forgiveness and your monies back.
Other than that is a letter before action BUT as many of the calenders were liscensed you might not suceed even there as amazon are/will be claiming they are protecting their customers (funny how its their customers when they want it to be) from either grey/fake/unliscenced sales
Seller_uknxc5WZTdWPX
Not sure if any of the below will help!
1. The Golden Rule: Invoices vs. Receipts
Amazon will not accept retail receipts, pro-forma invoices, or order confirmations from regular online stores if your account faces a authenticity check. To sell branded items, you must have a legitimate commercial invoice from an authorized distributor or the manufacturer.
A valid invoice must meet the following criteria:
Dated within the last 180 days.
Include your business name and address, which must exactly match the details on your Amazon Seller Central account.
Include the supplier’s name, phone number, address, and website (Amazon will often call them to verify you actually bought the stock).
Show a purchase quantity of at least 10 units of the item you want to sell.
2. Overcoming "Brand Gating" (Ungating)
Many established brands (like Nike, Lego, Samsung, etc.) are "gated" on Amazon to prevent counterfeiters. When you try to add the product to your catalog, Amazon will tell you that you need approval.
To get "ungated," you will need to submit the commercial invoice mentioned above. Once Amazon verifies the invoice with your wholesaler, they will unlock the brand for you to sell.
3. The "IP Claim" Trap (Intellectual Property)
This is where many new wholesale sellers get caught out. Just because Amazon approves you to sell a brand does not mean the brand itself wants you selling it.
If a brand has enrolled in Amazon's Brand Registry, they have the power to file Intellectual Property (IP) complaints against unauthorized sellers. If you get hit with an "Inauthentic" or "Trademark Infringement" claim, Amazon will immediately suppress your listing and freeze your funds until you provide proof of authorization.
Authorized Wholesalers: If your wholesaler is an officially licensed distributor for the brand, their invoices are usually enough to beat an IP claim.
Liquidators/Gray Market Wholesalers: If the wholesaler bought closeout or surplus stock from a third party, the brand may not recognize the supply chain, and Amazon may reject the invoices, leaving you stuck with unsellable inventory.
4. A UK-Specific Warning: Parallel Importing
If you are selling on Amazon UK, you must ensure your wholesale stock was sourced from within the UK or the European Economic Area (EEA). If you buy genuine branded goods from a wholesaler in the US or China and try to import them to sell in the UK, the brand owner can legally sue you or shut down your Amazon listing for parallel importing (cross-border trademark infringement).
Summary Checklist Before You Buy Stock:
Is the wholesaler an officially recognized distributor for that brand?
Will they provide a proper commercial invoice that matches your Amazon account details?
Check the ASIN on Amazon Seller Central to see if the brand is gated and requires a 10-unit minimum invoice to unlock.
Seller_A7wI1SGeyIqHF
PLEASE CONTACT UK AMAZON MANAGING DIRECTORS OFFICE FOR QUICK RESOLUTION, IF U GOOGLE IT U CAN GET MANAGING DIRECTORS EMAIL ADDRESS
Seller_IQo80d99W2DzP
AMAZON recommended Retail Arbitage, so screenshot and copy the details in a Court Case.
https://sellercentral-europe.amazon.com/seller-forums/discussions/t/3ac46588-f4c1-4a51-ac42-f6d8515c0679?postId=5408013f-1b05-4fc9-950d-5feabd16b698
In the end, the Amazon person admits there is a risk, but does not say that in the beginning.
Seller_VScpr4VvAADxF
I had a similar, if less serious, issue solved recently by using the new "Challenge" option.
Another seller "brand hijacked" a generic product I have been selling - claiming it's their IP by connecting it to their brand in Amazon Brand Registry, then accusing me of selling counterfeit goods. Amazon held the goods (not cash) worth £400.
Normal channels got me nowhere, as as far as Amazon bods could see, the scammer was the IP owner. In the end each one agreed I was right but were powerless to fix it. One phone call from the US and it was fixed the next day.
I was lucky that the scammer had given up on that product so was helpful. Still, see if you can try a "challenge".
