Amazon freezes 2.7 million yuan! More than 400 sellers seek help

A large number of British sellers have had their payments frozen due to Amazon's tax audit, with one company having more than 300,000 pounds frozen. This has left many people in despair, and some are even considering quitting. Amazon's move has sparked many questions and complaints from sellers, and the platform has recently made an official response that sellers may receive information verification requests from Amazon to reconfirm the company's registered address.

The incident has dealt a heavy blow to many British sellers, who have sought help from relevant departments, which has attracted the attention and investigation of the UK Small Business Commissioner. Now a British government minister has taken action and asked Amazon to unfreeze the withheld funds of hundreds of merchants.

More than 400 sellers seek help, the British government asks Amazon to unfreeze funds

As the tax investigation on Amazon UK continues to ferment, sellers' anxiety is still increasing. Now these sellers whose funds have been withheld may have good news.

A British government minister has asked Amazon to release funds withheld from hundreds of its merchants because the businesses could go bankrupt .

British Enterprise Minister Kevin Hollinlake said that up to 400 small traders have approached Small Business Commissioner Liz Barclay for help, saying that their funds have been withheld by Amazon for months. " We are very concerned and are writing to Amazon asking them to unfreeze their accounts until they follow the appropriate procedures. "

In a letter to Amazon UK chief executive John Boomfley, Hollinrak said: “I urge you to investigate this issue further as a matter of urgency and ensure support for those whose accounts have been affected.”

It is understood that more than 85,000 British companies use Amazon to sell products. This time, Amazon suspended payments for many small sellers and imposed stricter requirements on them. One technology company had more than 300,000 pounds (about 2.72 million yuan) frozen .

Other sellers caught up in the frozen funds said they have been in trouble for months, unable to pay taxes and other fees, and some partners are worried that their businesses may go bankrupt.

Many sellers are waiting for account funds ranging from £1,000 to £300,000 to keep their businesses moving forward smoothly.

Hundreds of Amazon sellers have complained on Amazon forums since early January. Officials from the UK Department of Business and HM Revenue and Customs have also expressed their concerns. In the face of the controversy, Amazon recently responded.

Amazon responds to the "tax inspection" incident

Amazon has issued an announcement to officially respond to the tax audit. The platform informed sellers that they may receive information requests in the near future to confirm their business location. This is a requirement of the UK VAT law, and the platform's goal is to minimize any inconvenience to sellers' businesses.

Online retailers , including Amazon, are required by the UK tax authorities to confirm the location of sellers in order to comply with VAT laws. In addition to the information already provided to Amazon, the platform may ask sellers to provide more information as part of due diligence , and the seller's ability to pay funds may be temporarily frozen during this period .

Amazon has previously asked sellers to provide relevant information, and this time it seems that they are required to provide even more information. This move has once again caused dissatisfaction among many sellers.

One seller said that Amazon's move was like adding insult to injury. Many of his peers had similar feelings. They didn't understand Amazon's behavior, and the main reasons were as follows:

First, Amazon needs to collect and remit VAT on behalf of sellers established outside the UK . What confuses many people is that the first group of people who received the emails were mostly companies established in the UK , some of which have been in business for many years .

Secondly, all the information Amazon holds proves that the seller is in the UK, so why are people getting this email asking sellers to prove they are in the UK?

Third, why do they keep going around in circles and not solving the problem? One seller said that he had provided all the necessary documents, but still received repeated requests for the same documents over and over again . Another seller said that he had been in this nightmare for nine days and sent 16 documents by email again on Monday , including bank statements, passports, HMRC account statements and VAT certificates. Some people have been trying for two months and still have no solution.

Because they cannot pass customs, their payment accounts are frozen, and many sellers are anxious. One of them said that he was so worried that he couldn't sleep or eat, and his family was also worried. For many sellers, their biggest worry is that payments have been suspended .

One seller described his experience, which is probably representative of many of his peers. He said: " Amazon sent me an email confirming that my documents were verified on January 29 (all documents were sent to Amazon) . Although my account is in good condition, my payment is still frozen and Amazon has no reason to withhold my funds . I have called the verification team several times and they confirmed that my information is verified but told me to contact seller support. I provide information to seller support and they refer the issue back to the verification team ... and so on and so forth, ad infinitum.

Seller support told me that this was a system error affecting UK Amazon sellers, so why is Amazon trying to cover up the issue and assuming that it was the sellers who failed to provide the necessary information? It is also clear from the feedback from many sellers that this is a systemic issue, but Amazon denies this. ”

The seller also said that some of his peers are now desperate, and some are even facing bankruptcy, unable to pay employee wages, rent, and bills . His statement is not groundless.

Seller: Leaving Amazon after successful verification is too stressful

In January, after Amazon issued a tax inspection warning, a seller posted a related post on the Amazon forum. Now the post has received nearly 2,000 replies, and sellers' concerns are deepening.

One Exmouth seller said an email from Amazon nearly gave him a heart attack. He was supposed to receive a payment of £1,300, but when he checked his account it had dropped to zero. Then Amazon emailed him saying he might not have established a business in the UK .

"I panicked and checked the Amazon seller forums and found that everyone had the same problem. This is my only income! I sent the documents on January 25 and received no response since then. There are hundreds of Amazon sellers who are not getting paid like me." The seller was helpless.

Faced with Amazon's failed audit, the Exmouth seller said he might move his business off the platform to stabilize his income. He has told his wife to withdraw the inventory because it has been sold but we can't get the money. We decided that once the verification is successful , we will devote all our energy to leaving Amazon. The pressure is too great !

For most sellers, they are currently unable to determine why their payments were frozen by the platform, nor do they know how to unblock it. Amazon continues to ask for information, but the problem is not resolved after they do so.

Today, a large number of Amazon sellers still have their payments frozen. After pressure from relevant British departments, the sellers' predicament may be able to turn around.

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