ROOT CAUSE

THE COMPLAINTS THAT WERE RECEIVED ARE ENTIRELY MY FAULT. THE TEAM DID NOT KNOW
VERY MUCH ABOUT AMAZON'S DROP SHIPPING P OLICIES; IN THE AMAZON BUSINESS SOLUTION
AGREEMENT'S SECTION 3.

1. WHY DROPSHIPPING? The adoption of dropshipping was motivated by the aim to reduce expenses and boost earnings, with a
primary emphasis on monetary benefits instead of mistreating clients.

2. Drop Shipping Oversight: Our sourcing process involved drop shipping orders from various sellers on www.amazon.com
without formal agreements with third-party suppliers for order fulfillment. This approach relied on the reliability and authenticity
of other Amazon sellers, circumventing direct control over the shipping process. When orders were placed through our seller
account, they were fulfilled by ordering on our buyer account, resulting in packages delivered directly from Amazon US Prime
Sellers without our company's identification. This unintentionally violated Amazon's Drop Shipping Policy.

3. Customer Feedback and Cost Considerations: Customer feedback highlighted concerns as packages lacked our company's
information, causing confusion about product origin and quality. The decision to minimize costs and expedite business launch
inadvertently led to customer dissatisfaction and non-compliance with Amazon's policy. Recognizing these issues, we are
committed to rectifying our approach and ensuring adherence to Amazon's policies to enhance customer trust and satisfaction.

4. SELLER CODE OF CONDUCT: Our lack of familiarity with Amazon's Seller Code of Conduct and the nonexistence of
standard operational procedures inadvertently violated the platform's rules. We earnestly acknowledge this oversight and realize
the implications of not fully grasping the platform's policies.
 Inaccurate Information Provision: Our customers faced difficulty in identifying us as the sellers due to the inaccurate
information provided, leading to a sense of misdirection.
 Questionable Fair Practices: Our actions, including the sharing of customer information with parties and our inconsistent
adherence to Amazon's policies, could be seen as falling short of the fair practices expected within the platform's seller
community.
 Initial lack of awareness: I was unaware that drop shipping was against Amazon’s policy. I did not intend to act unfairly towards
the customers but only to maximize our profits and minimize our costs. I was a new seller and not well-versed with Amazon’s
policies. I misunderstood the drop shipping policy.

5. LACK OF AWARENESS ABOUT DROPSHIPPING POLICIES: We had partial information about the drop shipping method
of fulfillment due to which we sourced from a retailer on www.amazon.com (PRIME SELLERS), but no attention was paid to the
name, packaging, and receipts that went with the orders which should have been issued by our store and not of www.amazon.com
(PRIME SELLERS). Our team had made a serious breach, and the team lacked training in Amazon's Drop Shipping Policies:
https://sellercentral.amazon.ca/gp/help/G201808410

CORRECTIVE MEASURES
1. IMMEDIATE STEPS TAKEN AND CORRECTIVE ACTIONS IMPLEMENTED TO RESOLVE ACCOUNT ISSUES:
 Deleted our entire listing
 Stopped accepting new orders
 Ceased all business operations
 Reviewed deactivation notification to ensure we provide Amazon with all the information they require.
 Corresponded with the Seller Support Team to understand the violations on our account.
 Reviewed the Dropship and Seller Code of Conduct policies.

2. We have educated ourselves on the Amazon Drop Shipping Policy. However, we will not be drop-shipping the products from a
third-party supplier. We have learned the policies for education and staff training purposes and will continue to do so every week
to avoid such errors again from our account. https://sellercentral.amazon.ca/gp/help/external/201808410

3. WE HAVE IMMEDIATELY ACQUAINTED OURSELVES WITH THE SELLER CODE OF CONDUCT. Our team has
immediately ensured that we maintain our information on all products and packaging that are being shipped to our customers. We
have created a PACKAGING SLIPS AND RETURNS LABEL, which will be applied to each product before shipment, to ensure
that the buyers can identify our business as the sellers of the items they receive.
Seller code of conduct reference: https://sellercentral.amazon.ca/gp/help/external/200336920

4. WE HAVE STARTED REGISTERING OUR TRADEMARK. Once we have approval for the same. We will only list private-
label products, which will make sure we do not violate anyone’s intellectual property rights. This will reduce or avoid complaints
from customers for the quality and condition of the product and in turn complaints for inauthentic items.
 FULFILMENT STRATEGY: fulfillment By AMAZON 100%. We have planned to send 100% stock to FBA.
5. The team will ensure that we do not misinterpret ourselves. All future shipments will be managed by FBA to make sure that
the customers receive products that have our business information in order to identify us as the seller. In addition, we will ensure
that we never engage in any misleading, inappropriate, or offensive behaviour.
 This applies to all our activities, including but not limited to:
 Information provided on your account
 Information provided in listings, content, or images
 Communication between you and Amazon, or you and our customers

6. We have established a partnership with a wholesale distributor for our inventory in which we will be traditionally
sourcing inventory from them directly to our warehouse to be shipped out to FBA centers which will completely ensure all
items are shipped by us with correct information on the products and packaging.

7. Have completed training on AMAZON DROPSHIPPING policies: We will not, however, be drop-shipping the goods from a
different vendor. We have reviewed the policies for staff education and training, and we'll keep doing it once a week.
https://sellercentral.amazon.ca/gp/help/external/201808410
The following examples of drop shipping are policy violations that may result in a restriction of our ability to sell using Amazon’s
Merchant Fulfilled Network (MFN):
 Purchasing products from a third party, including Amazon or another seller in Amazon’s stores, and having that third party ship
directly to customers, if the shipment does not identify you as the seller of record or if anyone other than you (including the third
party) appears on packing slips, invoices, or external packaging, it is strictly prohibited without exception; or
 Shipping orders with packing slips, invoices, external packaging, or other information indicating a seller name or contact
information other than your own is also strictly prohibited.”
 How Merchant Fulfilled Shipping (MFN) should be done if we ever wish to use this method in the future:
https://sellercentral.amazon.ca/learn/course?courseId=494da4a9-a882-40d1-bf87-81f8ca41843c&ref_=su_refined_search

8. The following course was immediately completed by our entire Team via SELLER UNIVERSITY:
 Get an understanding of the Seller Code of Conduct: https://sellercentral.amazon.ca/learn/courses?moduleId=439d41f2-dd98-
4b42-8c3f-90cf9752f7ad&ref_=su_refined_search&modLanguage=English
 Best practices for resellers in the Amazon store
https://sellercentral.amazon.ca/learn/webinar?ref_=su_refined_search&moduleId=9a5388ed-f7f8-40db-9602-
2ef240d1bede&modLanguage=English&videoPlayer=airy

PREVENTIVE MEASURES
1. Transition to 100% FBA Business Model
 Ceasing FBM Services and Strategic Partnership: In response to identified packaging and shipping issues, we have ceased all
Fulfillment by Merchant (FBM) services and removed listings violating FBM policies or velocity limits. Partnering with a
wholesale distributor now allows us to source inventory directly to our warehouse. A thorough audit of inventory, listings, and our
Amazon account ensures ongoing compliance and prepares us for a complete transition to Fulfillment by Amazon (FBA).
 Enhanced Inventory Management and Oversight: To streamline operations and enhance inventory management, we have
halted all Merchant-Fulfilled products until fully transitioning to FBA. Assigning dedicated staff to monitor stock levels ensures
precise oversight, enabling proactive measures to maintain sales velocity limits and mitigate potential issues.

2. Methods for Ensuring Seller Code of Conduct Compliance

Preventing Future Violations:
To prevent future violations of the seller code of conduct, we are implementing several measures:
- Using only Amazon-approved service providers and excluding external consultations.
- Strict adherence to all applicable laws and regulations.
- Avoiding misrepresentation and ensuring clarity and transparency in all customer interactions.
- Zero tolerance for misleading or offensive behavior in account content and listings.
- Commitment to fairness, refraining from manipulative practices such as coerced positive reviews.
- Upholding ethical standards by avoiding actions that harm other sellers' listings or rankings.
- Regular training through enrollment in Amazon Seller University to stay updated with best practices and policies.

3. Verification of New Supplier for 'TOYS & GAMES' Category: We have identified a new supplier, EE Distribution
(https://www.eedistribution.com/), verified to meet Amazon's criteria. Our verification process includes validating their invoices
against Amazon policies, confirming brand authorization, ensuring product quality and packaging standards, and verifying their
reputation through direct contact with brand owners and consultations with independent solicitors.

4. Reasons for Adopting 100% FBA Model: We are transitioning to a 100% FBA (Fulfillment by Amazon) model to ensure
efficient and reliable delivery to customers. This model provides seamless order tracking, robust customer service managed by
Amazon’s global network, and streamlined handling of inquiries, refunds, and returns. The FBA structure is cost-effective, with
fees covering storage, fulfillment, and shipping, including benefits like Amazon Prime’s fast One-Day Delivery on numerous
 items.

5. Inventory Management: We have changed the entire Order management process immediately. In addition, we have enrolled two
more employees to follow the order management process accurately. Our employees will manually check the Seller Central to
ensure we mark them as shipped once processed and sent.
 Our employees have been trained on the ZOHO software to ensure fluency in our operations and avoid any discrepancies.
https://www.zoho.com/in/inventory/amazon-inventory-management-software/
 A manual check of the inventory will be done on each item in our inventory to ensure our stock is updated after defective and
damaged items are removed from inventory.
 We will pay attention to inventory restock from time to time. We will place our account in Vacation Mode/Holiday Mode if we run
out of inventory. Due to suppliers' inability to fulfill the orders to ensure we do not breach any of High Drop shipment Amazon's
policies again.

6. Commitment to Trustworthy Business Practices: Ensuring a reliable partnership, we will monitor their reviews closely to
gauge their fulfillment of obligations to other customers, influencing both our reputation and Amazon’s. Exclusively utilizing
Amazon-approved service providers registered through the AWS procedure, we will consistently uphold all applicable laws and
adhere strictly to Amazon's policies, maintaining current and accurate account information. Never misrepresenting our store or
engaging in activities that jeopardize customer trust on Amazon, we are dedicated to providing a positive customer experience.
Committed to upholding Amazon's policies, integrity, and fostering trust, we are determined to ensure a positive outcome and
regain your confidence.
7. Private label courses attended as below to operate with a correct/ new business model moving forward:
 Amazon Private Label Course: https://amzscout.net/amazon-private-label-course
 Amazon FBA as a Private Label Business Launching Platform https://www.udemy.com/course/amazon-fba-private-label/
 Amazon Private Label Professional Training: https://eskills.academy/p/amazon-private-label-program
 Freedom Ticket by Helium 10: https://pages.helium10.com/ft-quick-start?crsh_reqid=5352965
 Amazing Selling Machine: https://amazing.samcart.com/products/amazingsellingmachine?utm_source=Prosperity-
featured&utm_campaign=Prosperity#/a_aid=10202&a_bid=f6d49b11

8. Monthly staff training: We have a monthly staff training on the 5th of every month & we are making sure that every employee is
attending the training. we are addressing their queries during the sessions. So far we have educated our team on the following
policies from Amazon Seller University:
 Seller Codes of Conduct 1.1 – Amazon Policy https://sellercentral.amazon.ca/learn/courses?moduleId=439d41f2-dd98-4b42-
8c3f-90cf9752f7ad&ref_=su_refined_search&modLanguage=English
 How Merchant Fulfilled Shipping (MFN) should be done if we ever wish to use this method in the future:
https://sellercentral.amazon.ca/learn/course?courseId=494da4a9-a882-40d1-bf87-81f8ca41843c&ref_=su_refined_search
 Best practices for resellers in the Amazon store:
https://sellercentral.amazon.ca/learn/webinar?ref_=su_refined_search&moduleId=9a5388ed-f7f8-40db-9602-
2ef240d1bede&modLanguage=English&videoPlayer=airy
 Fulfilment by Amazon (FBA): https://sellercentral.amazon.ca/learn/course?courseId=98c7f47c-4fb2-48f7-b94a-
040c50a9e7a0&ref_=su_refined_search
 FBA shipments: https://sellercentral.amazon.ca/learn/course?courseId=8bd3dd32-a4f2-4104-88e1-
5176f72088d0&ref_=su_refined_search
 FBA policies overview: https://sellercentral.amazon.ca/learn/courses?moduleId=a9a0dc3a-eba6-4142-aade-
13ece3b6a595&ref_=su_refined_search&modLanguage=English&videoPlayer=youtube