Introduction
Amazon’s marketplace has millions of sellers from around the world. From small businesses to large brands, there is an immense opportunity to reach customers around the globe. But if you are fed up with Amazon selling?
Another frequently asked query from sellers is:
“How do I close my Amazon seller account?”
Whether you are closing temporarily or permanently closing your business enterprise, you will need to know the appropriate way of doing so. Cancellation of an Amazon selling account entails more than clicking a single button—preparation, resolution of pending responsibilities, and an idea of its consequences.
What This Guide Covers
- The distinction between closing, suspending, or deactivating an account
- The step-by-step procedure of closing your seller account
- What to do before you settle (settlements, orders, reports)
- What happens after cancellation
- Legal issues, taxes, and business issues
- Alternatives to closing an entire account
By the end, you’ll have a complete roadmap to safely exit Amazon’s platform.
Why Do Amazon Sellers Close Their Amazon Accounts?
Some of the reasons why a seller will be best off quitting Amazon are as follows.
- High Competition – Since there are millions of sellers, profit opportunities may decline.
- Amazon Fees – Referral fees, FBA fees, and storage fees at times devour profit.
- Business Pivot – Those sellers could also switch to Shopify, Walmart Marketplace, or eBay.
- Slow Sales or Burnout – Opening an Amazon business is time-consuming, energy-consuming, as well as money-consuming.
- Personal Circumstances – Lifestyle change, absence of passion, or financial issues.
- Legal or Compliance Issues – Some of the sellers choose to leave after experiencing recurring suspensions.
Whatever the problem may be, knowing the correct cancellation procedure prevents problems.
Account Suspension vs. Account Cancellation
Distinguish these two from each other:
- Suspension – Amazon puts your account on hold for temporary restrictions because of infractions (late shipments, fraudulent products, poor metrics). Suspended accounts are usually reinstated by an appeal.
- Cancellation/Closure – This is a voluntary action that you ask Amazon to close your account for good. After doing such, you forfeit all privileges of being a seller and need to create a new account if you wish to sell again.
Important: Don’t close your suspended account immediately if your account is suspended. Appeal first. Closure may defeat your reinstatement opportunity.
Before You Cancel: Checklist of Importance
Closing your Amazon seller store without being prepared will mean money lost or issues left unsolved. Before you close by clicking on close, make sure that you:
Close All Open Positions
- Ship out and verify orders.
- Handle pending returns/refunds.
Close Your Balance
- Ensure that your disbursements are final.
- Amazon will hold back money for 90 days if there are disputes.
Amendment to Revised
- Make sure no active customer claims exist.
Download Reports & Data
- Stock sale reports, tax receipts, and transaction documentation.
- This is useful for later bookkeeping or auditing.
Cancel Professional Subscription (as applicable)
- Go to Settings → Account Info → Manage and downgrade the $39.99/month plan or cancel.
Notify Business Partners
- If you yourself order from wholesalers, let them know you are shutting down your Amazon store.
A Step-by-Step Guide to Cancel Your Amazon Seller Account
Step 1: Log In to Seller Central
- Go to Amazon Seller Central and sign in.
Step 2: Go to Account Settings
- Click on the Settings menu (top-right corner).
- Select Account Information.
Step 3: Find the Close Account Option
- Within “Account Management,” you will find Close Account.
Step 4: Closure Submission Request
- Click Close Account.
- Amazon will ask you to confirm your decision and possibly state a reason.
Step 5: Await Confirmation
- Amazon reviews your account.
- Once everything is arranged then you will receive an email confirmation.
⚠️ Important: Once closed, you cannot reopen the same account.
What’s Next When You Cancel?
Successful cancellation after:
- ❌ You will forfeit access to Seller Central.
- ❌ Listings of your items are removed permanently.
- ✅ Active buying account. You will still be allowed to buy from Amazon.
- ✅ Amazon retains your tax information. You may ask for access if necessary.
The outstanding amount will be settled against your bank account by the settlement period.
Other Than Closure of Account
Sometimes, closing your account isn’t necessary. Here are options:
- Deactivate Listings — Hide products instead of shutting down. Great if you plan to take a break.
- Downgrade from Individual Seller — Skip paying $39.99 per month but do maintain the account active.
- Pause Your Store — Employ “Vacation Mode” from Seller Central to disable sales temporarily.
These choices keep your account active without actually losing your account forever.
Legal & Tax Considerations Upon Cancellation
- Tax Filings – Keep your 1099-K forms (USA) or your VAT reports (Europe).
- State of Business Filings – Decide whether you need to close your LLC if you had registered one.
- Trademark & Brand Registration – Since you had a Private Label brand, shutting your account will also impact monitoring trademarks.
You should always ask your tax advisor if you are considering closing down.
Mistakes to Avoid When Cancellation
- ❌ Finalizing with active orders outstanding.
- ❌ Excluding Professional account downgrading (you could be charged again).
- ❌ Failing to download necessary tax and sales reports.
- ❌ Rushing the process—Amazon may flag problems as solved.
FAQs: Canceling an Amazon Seller Account
1. Do I need a business license to cancel my Amazon seller account?
No. A license isn’t required to close your account.
2. Can I reopen my seller account after closing it?
No. Once closed, you must create a new account to sell again.
3. What if I just want a break?
Use Vacation Mode or deactivate listings instead of closing permanently.
4. Does Amazon charge a cancellation fee?
No, but you must settle any unpaid fees before closure.
5. How long does it take to cancel?
If everything is resolved, Amazon usually confirms within a few days.
6. Will Amazon still keep my tax records?
Yes, Amazon keeps records for compliance. You should also download copies.
7. What if I want to return later as a seller?
You’ll need to create a new account with new credentials.
Conclusion
So, how do you cancel your Amazon seller account? The process is simple but requires preparation: fulfill all orders → clear your balance → download reports → request account closure.
If you’re leaving Amazon for good, this ensures a clean exit. If you’re unsure, consider alternatives like downgrading, vacation mode, or deactivating listings.
At the end of the day, closing your Amazon seller account is a big decision. Do it carefully, keep your tax and sales history safe, and you’ll leave with peace of mind.