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Wednesday, October 27, 2021

Amazon FBA Restricted Categories

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How to Sell on Amazon FBA Restricted Categories

There are many Amazon FBA Restricted Categories you would want to avoid. Just because you see other sellers selling something does not mean that you can do the same. There are specific requirements to sell on Amazon’s restricted category list. Don’t jump in without knowing the detail first.

The problems that most of the new sellers run into is finding about the restricted categories too late. The product they have invested thousands of dollars into is restricted by Amazon. In this blog we are going to share with you that how you can sell on Amazon’s restricted categories.

Gated and Ungated Categories

Amazon has different categories where sellers can choose one and sell their products. Those categories are divided in two. The ungated categories are accessible to all sellers. However, the gated categories are the ones with restriction on them. An example of a gated category is “Medicines and supplements”. To sell in this category, the sellers have to become gated sellers first. Then Amazon verifies everything thoroughly and allows you sell your items. If the inspection fails or there is a problem in your business then Amazon will not allow it.

Smart sellers usually focus on the gated or restricted categories. These restricted categories take about 33% of the amazon’s total space. Meaning that 33% of business on Amazon is of restricted categories. Amazon does not allow everyone to sell in those categories unless they meet their requirements.

Gaining Access to Amazon FBA Restricted Categories

Sellers need to go thorough an approval process if they want to sell products in these restricted or gated categories. The process is not the same for every seller. The approval totally depends upon the type of product you want to sell. For some products it might be difficult to get ungated approval.

Moreover, to make your sellers account a professional one then you have to meet the following requirements

  1. Shipment on time rate should be higher than 96%
  2. Late shipment percentage should be less than 4%
  3. Order defect rate should be less than 1%
  4. Order Cancellation rate must be less than 2.5%

You need to have a good account on Amazon. A professional seller’s account costs about $39.99 a month.

Getting An Approval on Amazon FBA Restricted Categories

Now let’s see how you can get an approval to sell in the gated categories.

First of all, you need to login to your amazon seller central account on sellercentral.amazon.com. On your homepage go to your inventory and select “Add a Product”.

A new page will open up.

Now, search the product you want to sell in the search field. Now after the search results are displayed in front of you, you need to click on the “Show Variations”.

After that you will see something like this

Click on listing limitation apply to see the request approval yellow button. The click on request approval. After clicking on the request approval, you will be taken to a selling application page.

Click on the request approval button to proceed.

On this page you will need an invoice. There two options. You need to submit an invoice of purchase from the manufacturers of the product. The second option is to send an authorization letter from the company to Amazon. Amazon will verify the invoice or letter accordingly. If you are sending an invoice then the following requirements should be met.

  • It needs to be dated within 180 days
  • Must have your original name and address and of the manufacturer
  • Must have a receipt of 10 successful purchases

If you want to send an authorization letter then

  • It needs to be dated within 180 days
  • Must have your original name and address
  • Must have name and address of the authorizing company

Provide them with the letter or documents. Amazon will verify those documents before they can grant access to Amazon FBA restricted Categories. So, this is it. This is how you apply for Amazon FBA restricted Categories as a seller to sell products.

Most of the sellers have this problem. They do not know which product is restricted. Generally, cosmetics and health care products fall in that category. So, before investing thousands of dollars on products. You should know if Amazon will allow it or not. Again, if others are selling it then it doesn’t mean you can or should too. Those sellers have been granted special permission by Amazon to sell. The process of applying for Amazon FBA restricted categories has been described above.

Moreover, as a new seller you should go through the terms and conditions of a firm. Amazon has everything listed in their policies and terms about “what is” and “what is not” allowed on Amazon.

So, there are three typical restrictions that you can run into while working with Amazon.

1. Account Restriction

  • You should be at least 18 years old to qualify as a seller
  • You must be from a country where Amazon does business
  • Must also have a band account from an approved country

2. Categories Restriction

This restriction is imposed on the sellers to gain quality control. Moreover, this is done for the safety of customers so they can stay safe from harmful products.

3. Product Restriction

This is the 3rd and last type of restriction. There are some things you can sell and some things you cannot. Amazon has provided information on the subject in detail.

For more information of FBA restrictions and Amazon Gated Categories make sure you drop a message in our inbox. Our professionals will guide you through the process smoothly.

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