Changing the ownership of an Amazon Seller Account can be a necessary step for businesses that are sold, transferred, or merged. It can also occur when the original account holder wants to hand over control for other reasons, such as to a business partner or family member. While Amazon’s policy is strict about account ownership transfers, it is possible to do so under certain conditions. This guide will walk you through the process of changing ownership of an Amazon Seller account.

Why You Might Need to Change Ownership

There are several reasons why you may need to change ownership of your Amazon Seller account:

  1. Business Sale or Acquisition: If you’re selling your Amazon business, the new owner will need to assume control of the seller account.
  2. Business Structure Changes: Changing the legal structure of your business (from a sole proprietorship to an LLC, for example) may require you to transfer the account to the new entity.
  3. Account Holder Change: Sometimes, an account holder may wish to hand over control of the account to another individual or partner.
  4. Retirement or Personal Reasons: If the original owner wants to retire or is no longer able to manage the account, they may want to transfer the ownership to someone else.

Amazon’s Policy on Changing Account Ownership

Amazon has strict guidelines regarding the transfer of account ownership. They discourage direct changes to ownership, and there are only a few ways to proceed with this process:

  • No Direct Transfer of Seller Accounts: Amazon does not allow the direct transfer of an existing seller account to another individual or company. This means that you cannot simply change the name and email associated with the account and hand over control.
  • New Seller Account Setup: Typically, the recommended approach is to close the current seller account and set up a new one in the name of the new owner. This process may be time-consuming but ensures compliance with Amazon’s policies.

Steps to Change Ownership of an Amazon Seller Account

If you’re transferring the ownership due to a business acquisition, sale, or other changes, here’s the general process:

1. Close the Existing Seller Account (If Necessary)

In most cases, you’ll need to close the existing seller account, especially if the new owner has a different business structure (like a different legal entity). Before doing this, ensure that:

  • All orders are fulfilled.
  • There are no pending issues such as disputes, customer complaints, or returns.
  • All funds in the account are disbursed.
  • Any inventory in Amazon’s fulfillment centers is removed (if using FBA).

To close the seller account:

  • Log in to the Amazon Seller Central account.
  • Go to Account Settings.
  • Select Close Account under Account Info.
  • Follow the steps to close the account.

2. Create a New Seller Account

Once the old account is closed, the new owner can create a fresh Amazon Seller account. During the setup process, they will need to provide:

  • Business name and tax information.
  • Bank account details.
  • Email address, phone number, and other contact information.
  • Valid credit card details.

Note: Amazon will perform identity verification and business checks as part of the registration process.

3. Transfer Existing Inventory (If Applicable)

If you are using Amazon FBA, the new owner must create their FBA account and set up new inventory shipments. You cannot directly transfer FBA inventory between accounts, so the new owner must:

  • Set up their FBA account.
  • Create new shipments for the inventory that will be transferred.

For non-FBA sellers, the new owner can continue selling the same products after listing them in their new seller account.

4. Notify Amazon of the Change

In certain situations, you may need to notify Amazon that the account is being handed over to a new owner. This is especially important if there are any ongoing issues, such as pending payments, customer complaints, or performance issues.

To notify Amazon:

  • Contact Amazon Seller Support through the Contact Us section in Seller Central.
  • Provide detailed information about the ownership transfer and the reason behind it.
  • Include documentation that proves the change in ownership, such as a business sale agreement or legal documents showing the transfer of assets.

5. Ensure Compliance With Amazon Policies

When transferring ownership, the new account holder must adhere to all of Amazon’s policies:

  • Product Listings: Ensure that product listings comply with Amazon’s rules. The new seller may need to update product descriptions, titles, and pricing.
  • Tax Information: If the new owner is located in a different country or jurisdiction, they may need to update tax information to reflect their business structure and location.
  • Performance Metrics: Amazon will monitor the new account for compliance with performance metrics such as customer feedback, order defect rate, and late shipment rate. Ensure the new seller is aware of these metrics and maintains good standing.

6. Update Bank and Tax Information

The new account holder will need to update their bank account details and tax information in Seller Central:

  • Bank Account: Provide new banking details so that funds from sales can be transferred to the new owner’s account.
  • Tax Information: Update the business tax ID or personal tax information, if applicable. Amazon requires sellers to verify their tax information in order to remain compliant with local tax laws.

Potential Issues and Considerations

Changing ownership of an Amazon Seller account can sometimes be challenging due to Amazon’s strict policies. Here are some potential issues to be aware of:

  • Suspension Risks: If the ownership transfer is not done properly, Amazon may suspend both the old and new accounts. This is especially true if Amazon detects any policy violations or unauthorized transfers.
  • Amazon’s Identity Verification: The new account holder must go through Amazon’s identity verification process. This includes submitting valid identification and business verification documents. Be prepared for delays during this process.
  • Account History: The new owner will not inherit the selling history of the old account. They will start fresh with a new performance record, which means they may need to establish good standing with Amazon to avoid any performance-related issues.

Conclusion

While Amazon does not directly allow the transfer of ownership of a seller account, there are ways to transition ownership under certain circumstances. This process typically involves closing the existing account, creating a new one, and ensuring that all necessary information and inventory are transferred. It is crucial to follow Amazon’s policies closely to avoid account suspensions or other issues. For more complex cases, contacting Amazon Seller Support for guidance is always a good idea. By following the proper steps, the transfer can be completed smoothly, allowing the new owner to continue operating the business without disruption.