Scale Insights Team
You must understand the rules if you want to be successful on Amazon, especially if you're handling multiple accounts. Amazon allows you to have more than one account for good reasons, like selling different products or managing various brands, but they're strict to keep the marketplace fair.
To avoid any trouble, ensure each of your Amazon accounts has its own bank account, credit card, and email. Keep everything separate to make Amazon happy and keep your business growing smoothly.
Want to learn more about managing multiple Amazon accounts the right way? Keep reading to learn how to play by the rules and win at selling on Amazon.
Amazon's Policy on Multiple Accounts
Amazon's policy on multiple seller accounts is clear and strict. Understanding the terms of service and the legitimate reasons for holding multiple accounts is crucial for staying compliant and avoiding potential account suspensions.
Terms of Service Overview
You are allowed to operate more than one Amazon seller account if you have a legitimate business reason for needing more than one. When you create a seller account, you agree to Amazon's terms of service, which prohibit the operation of multiple accounts without expressing permission from Amazon.
You should thoroughly review the terms of service to ensure your business practices align with Amazon's policies.
Policy Violations and Consequences
Violating Amazon's multiple accounts policy can lead to severe repercussions, including account suspension.
If you breach the terms without a valid reason, Amazon reserves the right to suspend all of your selling privileges. Depending on the nature of the violation, this suspension can be temporary or permanent.
Why Sellers Have Multiple Accounts
You may apply for permission to have multiple Amazon seller accounts if you have legitimate business reasons. These reasons include:
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Operating separate businesses with distinct structures and product lines.
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Selling in different product categories requires clear distinction from customers.
Before applying, ensure you meet all of Amazon’s criteria to avoid unfavorable action against your account.
How To Set Up Additional Seller Accounts
When seeking to expand your business with additional Amazon seller accounts, it's crucial to carefully follow Amazon's stringent guidelines.
Meet Amazon's Specific Criteria
To open a second account, you must meet Amazon’s specific criteria. Every new account requires a distinct justifiable business reason.
For instance, operating in separate product categories or owning distinct brands are valid reasons for multiple seller accounts.
Amazon emphasizes that each account must remain in good standing, which involves maintaining healthy performance metrics such as order defect rate, pre-fulfillment cancel rate, and late shipment rate.
Documentations You Need for Approval
When applying for additional accounts, prepare to provide the following necessary documentation:
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A separate email address
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Distinct credit card information
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Unique bank account details
Such documentation helps demonstrate to Amazon that the accounts are independent. A detailed business plan outlining the need for multiple accounts can also enhance your approval prospects.
Maintain Account Health
After approval, vigilantly maintaining each account's health is paramount. Monitor your performance metrics to avoid violations that could compromise your standing with Amazon.
This includes ensuring order accuracy, timely shipments, and responsive customer service for each account. Failure to adhere to Amazon’s high standards can result in account suspension or closure.
How To Maintain Separate Brand Identities
In Amazon selling, distinct identities help streamline operations and ensure compliance with Amazon's guidelines.
Unique Branding and Inventory
Unique branding is essential to differentiate your products and services. Here's how it pertains to distinct identities on Amazon:
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Inventory: To prevent stock confusion, you must manage separate inventory levels for each account. This separation also facilitates targeted strategies for different market segments or niches.
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Branding: Distinct branding for each account helps you cater to specific customer bases without brand dilution. It is crucial for the perceived value of your products and brand recognition in the marketplace.
Also related: Amazon Brand Registry to Take Your Brand to the Next Level
Separating Email and IP Addresses
Proper segregation of email and IP addresses is crucial for maintaining separate identities:
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Email Address: Your Amazon seller accounts should have a separate email address. This ensures clear communication channels and helps compartmentalize account-specific information.
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IP Address: You can use different IP addresses for each account to avoid triggering Amazon's security protocols, which may suspect a violation of their one account per user policy.
Tips for Staying Compliant and Avoiding Account Suspension
Your priority should be maintaining account health and adhering to Amazon's stringent policies. These actions are critical in preventing suspensions and ensuring the longevity of your seller account.
Monitor Your Account Performance
Check your Account Health dashboard regularly to monitor performance metrics. Amazon evaluates your performance based on several metrics, which typically include order defect rate, cancellation rate, and late shipment rate.
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Order defect rate (ODR): Keep this under 1%.
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Cancellation rate: Aim for less than 2.5% pre-fulfillment cancellation rate.
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Late shipment rate: Ensure this is less than 4%.
Maintain these benchmarks and routinely assess your performance metrics to avoid falling into the suspension zone. Remember, falling short of these standards is a common reason for account suspension.
Avoid Incentivized Reviews and Related Account Suspensions
To steer clear of account suspension, refrain from soliciting incentivized reviews. Amazon prohibits requesting reviews in exchange for compensation, as they aim to maintain the integrity of customer feedback.
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Do not offer free or discounted products in exchange for a review.
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Avoid using family or friends to write positive reviews, as Amazon could link the accounts and label it a manipulation of their system.
Explore Business Opportunities with Multiple Brands
When you operate multiple Amazon seller accounts, each brand gains the opportunity to carve out its niche in the marketplace. By focusing on unique brand identities and distinct target audiences, you cater to specific customer needs and preferences, which can lead to:
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Enhanced brand recognition
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Tailored marketing strategies
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Improved customer loyalty
It's crucial that each of your multiple brands maintains its individuality and aligns with different customer segments to maximize its potential for sales growth.
Also, creating relationships with various suppliers for multiple accounts safeguards your business against unforeseen supply chain disruptions. Benefits of this approach include:
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Stabilized Inventory Flows: A broad network of suppliers ensures that your operation isn't completely disrupted if you face challenges.
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Negotiation Leverage: With more suppliers, you can negotiate better terms, potentially reducing costs and improving profit margins.
Operational Strategies for Multiple Accounts
When managing multiple Amazon seller accounts, staying organized is crucial.
Implementing effective operational strategies can prevent common pitfalls such as inventory mix-ups and ensure that each account runs smoothly.
Delegate Responsibilities to Employees
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Assign Clear Roles: Ensure that your employees understand their specific responsibilities for each account.
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Use a task management system to assign duties and track progress.
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Training: Provide comprehensive training on the policies and procedures for each account to minimize errors.
Efficiently Manage Inventory Across Accounts
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Central Inventory System: Utilize a centralized inventory management system to monitor inventory levels across all accounts in real-time.
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Account-Specific Inventory: If each account caters to different products, keep inventory separated physically and within the system to avoid confusion.
Consider Using PPC Ads
Using PPC ads on Amazon is a strategic approach to highlight your products and attract more buyers. PPC, which stands for Pay-Per-Click, involves creating advertisements that you pay for only when a shopper clicks on them. This can lead to greater product visibility and potentially increased sales.
You can read more about creating ads on Amazon by reading our guide: How To Run Amazon PPC Campaigns Like A Pro
However, managing ad campaigns for multiple accounts requires expertise and a significant investment of time, especially when dealing with multiple accounts. Partnering with a PPC software solution like Scale Insights can provide automation tools to manage your campaigns and maximize your ad effectiveness.
Click here to view their plans that can help optimize your ad spend and campaign strategies.
Conclusion
When managing multiple Amazon seller accounts, it's essential to understand and comply with Amazon’s rules. Per their guidelines, possessing more than one seller account typically requires Amazon’s approval.
Each account must be linked to a separate business entity with distinct contact information, credit cards, and bank accounts.
Remember to maintain clear segregation between accounts and consistently uphold Amazon’s performance metrics. This will ensure smooth operations and minimize the risk of infringing upon Amazon's rules. Stay informed about any changes to Amazon's policies to ensure your seller accounts remain in good standing.
Frequently Asked Questions
How many Amazon stores can you have under one account?
You can operate multiple stores within one Amazon account if they fall under different marketplaces (like Amazon.com, Amazon.co.uk, etc.) and have different storefront names. However, if you're referring to entirely separate seller accounts with stores for different reasons, you'll need Amazon's approval and must meet certain criteria to maintain them separately.
Does Amazon track IP addresses?
Yes, Amazon tracks IP addresses to monitor account activity and ensure compliance with its policies. This tracking helps prevent the creation of duplicate accounts and other fraudulent activities. Adhering to Amazon's guidelines is important to avoid any potential issues related to IP address tracking.
How do I switch between Amazon seller accounts?
To switch between Amazon seller accounts, you must log out of one account and log in to another using separate credentials. Amazon requires that each account have a unique email address and bank account information. To avoid policy violations, always follow Amazon's guidelines when managing multiple accounts.
Can I have two Amazon accounts with the same email?
No, you cannot have two Amazon accounts with the same email address. Each Amazon account must be associated with a unique email address to maintain separate account identities and comply with Amazon's policies. This ensures clear separation of accounts and helps with the management and monitoring of each individual account's performance.
