ROOT CAUSE

The complaints that were received are entirely my fault. The team did not know very much about Amazon's Drop Shipping
Policies; in the Amazon Business Solution Agreement's Section 3.

1. WHY WE DID 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. SOURCING ERROR: Orders were drop shipped from various sellers on www.amazon.com. We trusted the reliability and
authenticity of other sellers on Amazon. We did not have any contracts with any third-party suppliers to conduct the order
fulfillment for us. When an order was placed on our seller account, we placed an order on our buyer account and shipped it
directly to the customer.

3. CUSTOMER FEDBACK: Customers received packages from Amazon US Prime Sellers without our company's information,
which was a violation of the dropship policy. This violation resulted from a failure to understand Amazon's Drop Shipping
Policy; the choice was made to cut costs and start the business as soon as possible, which confused customers regarding
the origin and quality of the products.

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. To prevent any packaging and shipping issues; our main goal moving forward is to operate on a 100% FBA
business model:
• Therefore, we have immediately implemented the following actions:
• Termination of further FBM services on this account.
• Removal of all active listings that were against the FBM policies as well as velocity limits.
• An established partnership with a wholesale distributor for our inventory, enabling traditional sourcing directly from them
to our warehouse.
• Completion of a thorough audit of our inventory, listings, and Amazon account.
• We now stop all Merchant-Fulfilled products at our facility until we are fully able to implement FBA, as we intend to
completely switch to a 100% FBA model.
We also appointed an employee to keep track of how much of each product is in stock so that we can keep a more active
track of our supply and prevent us from being in a situation that can affect the sales velocity limits.

2. The following methods will ensure the prevention of future violations concerning the seller code of conduct:
• The utilization of only Amazon-approved service providers, excluding all outside consultations.
• Adherence to all applicable laws at all times.
• Avoidance of all forms of misrepresentation.
• Provide clarity to all customers and promote transparency with Amazon.
• Zero tolerance for misleading, inappropriate, or offensive behavior, which includes but is not limited to information
provided on our account and in the content or images of listings.
• Acting with fairness in mind at all times and avoiding all manipulation, including coerced positive reviews.
• No engagement in any behaviors that damage another seller or their listings and rankings.
Enrollment into the Amazon Seller University with an embankment of training every three days.
3. New supplier for future inventory:
• We have identified a new verifiable supplier and we have decided to sell under a new category which is ‘TOYS & GAMES’.
Our new supplier website is https://www.eedistribution.com/. We have verified the supplier as per Amazon’s criteria and
we have followed below mentioned steps to verify:
• Their invoices meet the Amazon criteria and we have compared the invoices with Amazon policies
• They have valid brand authorization to sell the products.
• Their product quality including packaging is in good condition.
• The sellers are reputable and their website is genuine.
• We contact the right owners directly through emails and calls to verify the supplier
• We request letters of authorization directly from the right owners asking for permission to sell their products on Amazon.
We will make reference to the government website. We will also get help from the manufacturer to make sure we get
permission from the brand owners.
• We are taking advice from independent solicitors to ensure that valid and genuine documents are provided by the supplier
or manufacturer.

4. The reason we wish to establish a 100% FBA model moving forward: This will allow us to ensure that all items are
shipped correctly to the customers through the trustworthy delivery channel of Amazon. Buyers will be able to trace their
packages with ease with the FBA model and any issues or queries will be dealt with directly by Amazon. In addition,
Amazon’s global customer service network will manage customer inquiries, refunds, and returns on FBA orders which will
be beneficial in having 100% customer satisfaction.

5. Benefits we have identified for 100% FBA model:

• FBA customer support: Cross-language phone/e-mail support, day and night, at no extra cost to us, besides Returns
Processing Fees in certain product categories.
• FBA returns: Amazon will manage all customer service to do with returns, via their Online Returns Centre.
• It's cost-effective (Pay as you go)— We are only charged for storage space and the orders Amazon fulfil. The cost of
shipping is included in our fees, with no extra charge for Amazon Prime for unlimited, fast One-Day Delivery on millions of
items.

6. 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.

7. We will monitor their reviews and see if they have been fulfilling their obligations to other customers properly.
• This will help us get an idea of what it will be like working with them. Their reputation affects us and Amazon as well.
• We will only use Amazon-approved service providers who have registered to work with our seller account through the
AWS procedure.
• We will always abide by all applicable laws and adhere to Amazon's policies. We will keep our account information current
and up-to-date.
• We will never misrepresent our store or engage in any activities that may harm the trust of Amazon's customers.
• We will always act in a trustworthy manner and ensure that our customers have a positive experience with our products
and services on Amazon.
• We are committed to upholding Amazon's policies and providing a positive experience for our customers. We understand
the importance of trust and integrity on the platform and are determined to regain your trust.

8. 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
9. 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