Section 3

Code Of Conduct Appeal

I am a principal of …………………and I am writing to you today in regard to our
account review after we received a notification stating that we had been identified
as drop shipping.

Issues that Caused the Complaints:

We have allowed a third party to fulfill a small fraction of the products we have
sold on the Amazon platform, which has led to our account review. However, we
believed that we were operating within the boundaries of Amazon’s drop shipping
policies, and it is only after our suspension that it has come to our attention that we
have not. We have on occasion purchased products from online retailers and had
them sent directly to customers, when we feared that taking the extra time and care
to have the product first shipped to us would prevent the customer from receiving
their order in a timely manner. We are now aware of our error and take full
responsibility for it. Please read further into our plan of action to see how we are
revamping our entire company to try and prevent us from straying outside of
Amazon’s policies in the future.

The actions you have taken to resolve the issue

The Actions Taken to Resolve this Issue:

● We immediately reviewed Amazon’s policies to understand how we weren’t in
compliance and have updated our business model accordingly.
○ We then audited our entire account to ensure that there is no evidence of other
policy violations or potential issues and found none.
○ We also sent all of Amazon’s policies, with a focus on Amazon’s dropshipping
policies and guidelines, to our suppliers to better ensure that these practices are
properly practiced.
● We will never again drop ship an item to one of our customers. We now store all
Merchant-Fulfilled products at our facility until we are fully able to implement
FBA, as we intend to completely switch to an FBA model.
○ We also appointed an employee to keep track of how much of each product is in
stock, so that we can keep more active track of our supply and prevent us from
being in the situation that caused us to use drop shipping in the past.
● We reached out to any dissatisfied customers to offer them their choice of a
refund or replacement.

How We Have Revamped Our Business to Ensure the Compliance:

● We will always be the seller of record of our products going forward.
○ We will identify ourselves as such on all packaging slips and other information
included or provided in connection with the product.
● We will always remove supplier’s packaging and invoices from our products
prior to sending to Amazon customers until we are able to switch to a full FBA
model.
● We will always be responsible for accepting and processing customer returns of
our products.
● Again, we are seeking to completely switch our business model from FBM to
FBA as this would completely resolve any future issues.
● As such, we are fully prepared to comply with all other terms of our seller
agreement and Amazon policies.

The steps you have taken to prevent the issue going forward
The Actions to Prevent Drop Shipping Violations:
● We will always purchase our products and have it shipped to us before sending it
to an Amazon Fulfillment Center.
○ Before sending the products to FBA, we will ensure that we are the seller of
record on all applicable documentation.
● In order to comply with all of the terms of our seller agreement and Amazon
policies, we have implemented the following to our business.
○ We have liability insurance in place just in case any product is damaged or
causes any damage.
○ We bear all sales tax responsibility, have set the selling price, and bear the
liability risk of our products (per the BSA’s indemnification clause).
● As stated previously, we have appointed an employee to oversee our inventory
and replenish it as needed, so that we are never rushing to get a product to a
customer in an appropriate amount of time.
○ This ensures that the inventory quantities listed in our account accurately reflect
our stock.
○ If we are running low in our own warehouse, even if we still have items in an
Amazon Fulfillment Center, we will now inactivate or delete the product listing
until we have replenished our stock.
○ We will never list a larger quantity of units than we are certain that we can
fulfill.
○ We collect data to monitor sales frequency and predict sales to prevent issues
before they can arise.
● In addition to that employee, we have also appointed senior managers to monitor
all procedures and enforce compliance.
○ This includes a shipping manager who will oversee all shipments to inspect and
ensure that all packaging, labels, and packing slips are correct and that we are
always the seller of record.
● We continue to provide excellent customer service and ensure 100% satisfaction.
○ We continue to respond to all customers within 24 hours and address their
concerns.
○ We always offer any dissatisfied customer a full refund within 48 hours.
○ Our staff checks all reports, notifications, emails, metrics, feedback, and reviews
at least three times daily to identify and address potential problems before greater
issues arise.
○ We remain responsible for all return requests.

Policy Education:
● My staff and I have retrained ourselves on Customer Service policies,
specifically policies regarding drop shipping, and have now appointed a senior
manager to hold monthly training sessions regarding Amazon’s policies, to ensure
we are always in compliance:
○ We now are fully liable to ensure that we are the seller of record of our products;
○ We also understand that shipping orders with packing slips, invoices, or other
information indicating a seller name or contact information other than your own is
strictly prohibited per Amazon policy;
○ We will now identify ourselves as the seller of our products on all packing slips
and other information included or provided in connection with them.
○ We understand that purchasing products from another online retailer and having
that retailer ship directly to customers is prohibited;
○ We respond to all customers within 24 hours;
○ If any customer leaves a review of three or less, they will be offered a full refund
and we request for more information, where appropriate, regarding their complaint
so that we may continue to improve and better our company for our customers;
○ Our staff checks all reports, notifications, emails, metrics, feedback, and reviews
three times daily to recognize and remove problematic ASINs before issues arise;
○ If any ASINs are problematic, we will reach out to Seller Support for guidance.
We believe in helping Amazon maintain relevant and precise product detail pages.
○ All A-to-Z claims will receive a full immediate refund.

We have taken this suspension as an opportunity to fully reevaluate and improve

our business. We can now confirm our compliance with Amazon’s Drop Shipping
policies, as proved by switching our entire catalog to FBA. We sincerely apologize
for mistakenly conducting a portion of our business through drop shipping
practices previously, but we hope that all the ways in which we have revamped our
business model to ensure we never drop ship again proves to you that we are able
to conduct a company that can function within Amazon’s policies. We take pride
in operating an account that remains in compliance with all of Amazon’s policies,
and so would like to respectfully request the review of our account so that we may
continue to sell on the Amazon platform.

Thank you for your time and assistance with this matter,
…………………….