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Price gouging

Coming shortages could make price gouging tempting again

November 24, 2020 Leave a Comment

3P sellers should avoid the urge to raise prices on necessities

By: Lesley Hensell

Don’t be that seller.

The warning signs are everywhere. Manufacturers and retailers who sell grocery, medical and personal care items expect new runs on necessities in the coming weeks. Already, plans are being made to institute new buying limits on customers at retail stores.

This could easily kick off a new cycle for Amazon sellers eager to profit off of shortages in brick-and-mortar stores. We saw it last spring. Retail arbitrage sellers – and even those with wholesale relationships – increased prices for items in short supply. Once again, shortages could make price gouging tempting.

Amazon sees this as price gouging. And Amazon shuts down accounts for price gouging.

Price gouging

What is price gouging?

It’s difficult to find a dictionary definition of price gouging that includes practical terms, like percentages. Legally speaking, different states have different standards. Like a Supreme Court justice once said about a different hard-to-define topic, “I know it when I see it.”

Most folks can agree that doubling a price during a time of scarcity looks and feels like price gouging, especially for essential items. But on Amazon, the standard it much stricter.

Prior to Covid, when natural disasters hit, Amazon would sometimes punish sellers who raised prices more than 10 percent. During the Covid shutdowns last spring, even a nominal price increase on necessities could land a seller in hot water and result in their ASIN being shut down, their account receiving a warning, or worst of all their account being suspended. In April, we discussed enforcement issues such as gouging and warned sellers about linked accounts here. Once again, both seem to be on the rise.

What should sellers expect?

In coming days, weeks – and heaven forbid, months – there will be shortages. Of course, these shortages could make price gouging tempting for third-party Amazon sellers to buy in quantity when they can and sell for a huge profit.

Just don’t do it. Your account depends on it. Don’t be that seller.

Above all, if you have questions about keeping your account in good standing or getting reinstated? Give us a call at Riverbend 877-289-1017


Lesley Hensell

Lesley is co-founder and co-owner of Riverbend Consulting, where she oversees the firm’s client services team. She has personally helped hundreds of third-party sellers get their accounts and ASINs back up and running. Lesley leverages two decades as a small business consultant to advise clients on profitability and operational performance. She has been an Amazon seller for almost a decade, thanks to her boys (18 and 13) who do most of the heavy lifting.

Filed Under: 3P, Account Health, Amazon, Amazon Appeal, Amazon seller, Amazon Seller Central, General, Inventory Sourcing, Toys and Games Tagged With: 3P, Amazon, Amazon account, Amazon appeal, Amazon seller, Amazon Seller Central, Covid, Necessities, Price gouging, Price increase, Seller Support, Shortage

Amazon taking up to 30 days to review price gouging appeals

May 8, 2020 Leave a Comment

Both preemptive and suspension appeals are lagging for weeks

By: Lesley Hensell

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.

price gouging appeal to amazon

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.

If you’ve been hit with a price gouging appeal, call on Riverbend Consulting. We can help. Let’s talk 877-289-1017 or visit our website.


Lesley HensellLesley is co-founder and co-owner of Riverbend Consulting, where she oversees the firm’s client services team. She leverages two decades as a small business consultant to advise clients on profitability and operational performance. She has been an Amazon seller for almost a decade.

Filed Under: Account Appeal, Account Health, Amazon, Customer Serivce, FBA, General, POA, Price Gouging, Seller Central, Seller Performance, USA Tagged With: 3P, 3P seller, Amazon, Amazon FBA, Amazon seller, Appeal, Copyright, Deactivated, Documents, Inventory, POA, Price gouging, Reactivated, Suspended, Suspension

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