Velocity Limits for Amazon Sellers
Amazon’s velocity limits are automated flags triggered when an item or account shows a sudden, disproportional spike in sales, often resulting in withheld disbursements, ASIN suspension, or account suspension. Sellers can typically address this by providing documentation explaining the sales increase and proof of adequate inventory sourcing.
Alert: Amazon Sellers:
Seller Suspensions on the rise.
Amazon has a number of reasons why they suspend sellers. One new issue we saw trending are “Velocity Limits”. This is generally triggered due to Amazon’s “bots” who detect disproportional sales at an item or account level and flag the account for “Velocity Limits”. In such circumstances Amazon either withholds your disbursements, suspends the ASIN, or suspends the account.
In Q4, most of our Amazon Seller clients experience growth in sales and some are affected by the “Velocity Limits” issue.
We are familiar with how to handle velocity limits and have helped many sellers navigate through this. Initially, you as the seller will need to demonstrate to Amazon why the product(s) had an increase in sales, whether it be due to the holiday or seasonal demand for the products, advertising, or other efforts that you have taken to drive traffic and sales to the item.
Amazon will often as well want to review your purchase receipts to ensure you have purchased adequate inventory to supply the increased demand. Lastly, Amazon will monitor the performance to make sure the item(s) are timely shipped and delivered to buyers without buyer complaints.
Velocity Limits are one of the many issues we face daily at LA Law Group. We continue to fight for our clients and for Amazon sellers to ensure that they continue their success in selling on Amazon.
If you have any specific questions which you’d like us to write about, or need a free consultation regarding an issue you are having with Amazon, please feel free to contact us.
866-62-LALAW
Frequently asked
What triggers a velocity limit flag on Amazon?
Amazon's automated systems detect a sudden, disproportional increase in sales at the item or account level compared to historical patterns. This is common during Q4 or seasonal demand spikes, but can also result from advertising or promotional efforts.
What does Amazon ask for when a velocity limit is applied?
Amazon generally wants an explanation for the sales increase along with purchase receipts or invoices showing you sourced enough inventory to meet the demand. They may also monitor shipping times and buyer complaints during this period.
Can a velocity limit lead to a full account suspension?
Yes, depending on the severity, Amazon may withhold disbursements, suspend the specific ASIN, or suspend the entire seller account. Responding promptly with clear documentation may help address the issue, though outcomes depend on Amazon's review.
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.