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Multiple Amazon Seller Accounts? Good or Bad Idea?

By Aryan Amid
Multiple Amazon Seller Accounts?  Good or Bad Idea?

Operating multiple Amazon seller accounts without Amazon’s approval violates its policies and can put both accounts at risk of suspension, so sellers generally should only do this after meeting Amazon’s stated criteria and receiving approval. If accounts are linked and one is suspended, the other is typically restricted as well, which can also freeze associated funds.

Its a reality that Amazon Sellers, as a whole, often face violations, suspensions, or account closures where they are banned from selling on Amazon.  As a prior Amazon seller, I have been through the trials and tributes of dealing with these issues first hand, and can attest that it is not a process that any seller would speak positively about.

It’s ironic that similarly its against Amazon policy for a seller to have multiple seller accounts and its a policy that is enforced leading to seller suspensions frequently.

Sellers should know that although Amazon does permit second account when certain criteria is met, once you create and link a second account to your first account, both accounts are connected meaning if one of them is shut down, both will be restricted.

If a seller is considering opening a second seller account, a first point of guidance is the Amazon help page as follows:

https://sellercentral.amazon.com/gp/help/external/200386250?language=en-US&ref=mpbc_200414320_cont_200386250

Bear in mind that in order to quality, there must be a “legitimate” business need and you have to meet certain guidelines:

  • Your seller account must be good standing with excellent Customer Metrics
  • Separate login, and financial information for new account 
  • The products being sold on both accounts cannot be the same and there can be no overlap. 
  • The accounts must be focused on different categories.

Once you apply, You’ll receive a response to your request generally within 2 to 3 business days.

It is important to keep in mind however that if one account is suspended, both will be suspended and both will be in jeopardy.  This can lead to a holding of your funds and restriction on your ability to sell.

Can I create multiple accounts without Amazon approval?

Yes, however this is against Amazon policy and can lead to you having your account suspended and funds on hold .  Tip:  Treat the accounts as separate businesses, keeping in mind to keep all information distinct.  Important factors Amazon looks at are:

  • IP addresses
  • Computers
  • Phones
  • Points of contact
  • Staff members (with limited access to accounts)
  • Entities (LLC, etc.)
  • Phone numbers
  • Email addresses
  • Physical locations
  • Warehouse addresses

PLEASE KEEP IN MIND THIS LIST IS NOT ALL THE FACTORS AS WE DO NOT KNOW ALL THE FACTS.

Amazon has an automatic system which scans and can find matches between these and other factors to identify related accounts.

It’s important to note that multiple accounts are not uncommon and there are many sellers who obtain multiple accounts without permission.  If you are suspended for having a second account and Amazon refuses to release your money, there still are viable methods to get your funds released.  The Amazon seller terms and conditions provide that you can take Amazon to binding arbitration and have an arbitrator decide the matter as necessary to release your funds.  Additionally, if you win Amazon will have to pay your costs!  If your dispute is less than $75,000, you can utilize the expedited arbitration program  which will reduce your costs and help obtain a resolution.

At LA Law, we help Amazon sellers in all types of situations, whether from multiple accounts, or other issues leading to suspension, we are well versed and knowledgeable on everything Amazon.

Frequently asked

Can I ask Amazon for permission to open a second seller account?

Yes, Amazon allows a second account when there is a legitimate business need and requirements like separate login and financial information, non-overlapping products, and good account standing are met. Requests are generally reviewed within a few business days, according to Amazon's help documentation.

What happens if Amazon discovers an unauthorized second account?

Amazon can suspend both linked accounts and place a hold on associated funds, since its systems are designed to detect connections through factors like IP addresses, devices, and contact information. This is a policy violation, not a guaranteed outcome, but it is a recognized risk sellers face.

If Amazon suspends my account and holds my funds, do I have options?

Amazon's seller terms include an arbitration provision that allows sellers to pursue binding arbitration to resolve fund disputes, including an expedited process for claims under $75,000. An attorney familiar with Amazon seller disputes can help evaluate whether arbitration is a reasonable path in a particular situation.

Attorney Advertising. This article is general information, not legal advice, and does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.