Selling on Amazon can be a life-changing opportunity, but only if you follow the rules. Amazon’s Seller Terms and Conditions — also known as the Business Solutions Agreement (BSA) — is the legal foundation that governs your relationship with the platform.
Whether you’re using FBA (Fulfillment by Amazon) or FBM (Fulfilled by Merchant), understanding these rules is essential to avoid account suspension and scale your business successfully.
In this guide, we’ll break down everything you need to know about the latest Amazon Seller Terms and Conditions in 2025.
1. What Are Amazon Seller Terms and Conditions?
When you create an Amazon seller account, you agree to the Business Solutions Agreement (BSA). This agreement outlines the responsibilities, rights, and obligations of Amazon sellers.
The BSA covers:
- Account setup and eligibility
- Product listing guidelines
- Fee structures
- Fulfillment responsibilities
- Performance metrics
- Termination and suspension clauses
📌 You can read the full agreement here: Amazon BSA
2. Setting Up Your Amazon Seller Account
To start selling on Amazon, you must:
- Provide accurate legal and tax information
- Submit a valid bank account and credit card
- Verify your identity with documents like ID, utility bill, or business license
Failure to provide accurate info or pass verification checks can result in rejection or suspension.
3. Product Listings and Restrictions
Amazon has strict policies on what you can and cannot sell.
Sellers must:
- List genuine, legal, and accurately described products
- Follow category-specific rules and compliance requirements
- Avoid prohibited items like counterfeit goods, illegal drugs, or weapons
Violation of listing policies can lead to your product being delisted or your account suspended.
👉 See the restricted product list here: Amazon Restricted Products
4. Fulfillment Methods: FBA vs. FBM
FBA (Fulfillment by Amazon):
- Amazon handles storage, shipping, and customer service
- You must comply with prep, labeling, and shipping standards
- Inbound shipping costs and storage fees apply
FBM (Fulfilled by Merchant):
- You manage inventory and ship orders yourself
- Must meet strict performance metrics for delivery time and order accuracy
- You handle customer service and returns
Each method has its own responsibilities, so pick what suits your business model.
5. Fees, Payouts, and Commissions
Amazon charges different fees based on your selling plan and product category.
Key fees include:
- Referral fees (usually 8%–15% depending on the category)
- FBA fulfillment fees (based on size and weight)
- $39.99/month for a professional selling plan
You get paid every 14 days, but payments can be held if you have unresolved A-to-Z claims or policy violations.
6. Intellectual Property & Brand Protection
Selling fake or infringing products is a serious violation.
Avoid:
- Using copyrighted images, trademarks, or brand names without permission
- Selling replicas or unlicensed products
If you’re a brand owner, join Amazon Brand Registry to protect your listings and report counterfeit sellers.
7. Account Health Metrics
Amazon tracks your performance through key metrics. If these fall below the standard, your account can be suspended.
Important metrics:
- Order Defect Rate (must be <1%)
- Late Shipment Rate (must be <4%)
- Cancellation Rate (must be <2.5%)
📌 Monitor your performance in the “Account Health” dashboard in Seller Central.
8. Suspensions, Bans & Linked Accounts
Amazon can suspend or permanently ban your account without prior notice if:
- You break terms of service
- Sell prohibited or fake products
- You’re linked to a previously suspended account
Pro Tip: Avoid using the same IP address, device, or payment method across multiple accounts unless authorized.
9. Dispute Resolution & Legal Jurisdiction
All disputes are governed under Washington State law (USA). You agree to:
- Waive class-action lawsuits
- Settle disputes through binding arbitration
Always keep records of your transactions, messages, and reports for legal protection.
10. Amazon Policy Updates
Amazon regularly updates its Seller Terms. You’re responsible for staying informed.
How to stay updated:
- Enable policy update notifications in Seller Central
- Read banners and announcements on your dashboard
- Join Amazon seller communities or follow seller news blogs
Ignorance of the rules will not protect you from enforcement actions.
FAQs
Q1: Do I need to read the entire Amazon Seller Agreement?
Yes. It’s legally binding and changes frequently. All sellers are expected to comply.
Q2: Can Amazon suspend my account without warning?
Yes. For serious violations like selling counterfeit goods or breaking policy, suspensions can happen instantly.
Q3: How often does Amazon update its terms?
There’s no fixed schedule. Updates can happen quarterly or when laws or platform changes require it.
Final Thoughts
Amazon’s Seller Terms and Conditions are not just fine print — they’re the rulebook for success. Knowing them helps you stay compliant, avoid penalties, and build a long-term business.
✅ Stay updated
✅ Monitor your account health
✅ Treat Amazon’s policies seriously
