How to Close a Seller Account on Amazon Without Costly Mistakes
Closing an Amazon seller account may seem simple on the surface, but many sellers end up losing money, facing compliance issues, or even getting permanently blocked because they don’t follow the correct process. At The We One, a trusted provider of Amazon marketing services in the USA, we’ve seen sellers rush into account closure without understanding Amazon’s rules, ongoing obligations, or the long-term consequences.
Whether you’re stepping away from eCommerce, restructuring your business, or switching to another fulfillment model like Amazon multi-channel fulfillment (MCF), this guide explains how to close a seller account on Amazon safely, avoid penalties, and protect your future selling opportunities.
Understanding Amazon Seller Account Closure vs Suspension
Before you request to close a seller account on Amazon, it’s critical to understand the difference between Amazon account suspension vs closure.
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Amazon seller account suspension happens when Amazon disables your selling privileges due to policy violations, performance issues, or compliance problems. In this case, sellers must submit an Amazon account suspension appeal with a strong Plan of Action.
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Amazon seller account closure is a voluntary decision made by the seller to stop selling on Amazon permanently or temporarily.
Many sellers mistakenly attempt to close accounts while unresolved performance notifications, A-to-Z claims, or tax obligations exist. This can result in Amazon seller account termination instead of a clean exit.
When Should You Close a Seller Account on Amazon?
You may consider Amazon seller account deactivation if:
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You’re exiting eCommerce permanently
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You’re switching business models or selling channels
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You want to avoid recurring professional seller fees
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Your account has ongoing compliance risks
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You are restructuring after Amazon Renewed or gated category challenges
However, sellers involved in Amazon Renewed, restricted categories, or Amazon FBA inventory management must be extra careful. Improper closure can lock funds or trigger audits.
Step-by-Step Guide: How to Close an Amazon Seller Account
Here’s a safe, compliant guide to closing your Amazon seller account without losing money:
Step 1: Resolve All Open Orders and Returns
Ensure:
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No pending orders
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No open refunds
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No chargebacks or A-to-Z claims
Amazon will not approve seller account closure with unresolved buyer issues.
Step 2: Clear Inventory from Amazon Warehouses
If you use FBA:
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Create removal or liquidation orders
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Resolve stranded inventory
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Close multi-channel fulfillment (MCF) integrations
This is especially important if you use Amazon multi-channel fulfillment or fulfillment automation tools.
Step 3: Pay Outstanding Amazon Fees
Settle:
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Amazon FBA fees
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Storage fees
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Advertising charges
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Subscription fees
Failing to do this may result in withheld funds or future account blocks.
Step 4: Download Important Reports
Before you delete your Amazon seller account permanently, download:
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Transaction history
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Tax documents
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Inventory and settlement reports
These records are crucial for Amazon Canada sales tax, GST/HST registration for Amazon sellers, and CRA audits.
Step 5: Close the Account in Seller Central
Navigate to:
Settings → Account Info → Close Account
Submit the request and monitor notifications until Amazon confirms closure.
How to Close an Amazon Seller Account Without Losing Money
Many sellers search for “close Amazon seller account without losing money”—and rightly so. Common mistakes include:
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Closing the account before final payouts
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Forgetting to remove inventory
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Ignoring tax compliance
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Leaving advertising campaigns active
At The We One, we help sellers execute seller account cancellation without penalty by auditing risks before closure.
Common Mistakes Sellers Make When Closing Amazon Accounts
To avoid mistakes closing Amazon accounts, watch out for:
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Attempting closure during an account review
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Confusing suspension with voluntary closure
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Ignoring Amazon seller account compliance issues
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Failing to reconcile Canada sales tax compliance
If Amazon closes your account instead of you, reinstatement becomes much harder.
What If Your Amazon Seller Account Is Already Deactivated?
If your account is suspended, do not attempt closure immediately. Instead:
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File an appeal Amazon seller account suspension
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Submit a detailed Plan of Action
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Resolve root causes before requesting closure
Once an account is terminated, reopening is nearly impossible.
How Category Ungating Affects Account Closure
Many sellers consider closing accounts after failing ungating requests. Before giving up, consider:
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How to get ungated on Amazon
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Amazon restricted categories approval
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Documents needed to ungate on Amazon
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Amazon gated categories explained
In some cases, ungating can revive a stalled business and eliminate the need for closure.
Amazon Renewed, Black Hat Practices & Compliance Risks
Selling refurbished products under Amazon Renewed comes with strict quality and compliance standards. Sellers who used amazon black hat tactics—fake invoices, manipulated reviews, or misrepresentation—often face irreversible suspensions.
If compliance risks exist, consult professionals before attempting account closure.
Tax Responsibilities Before Closing an Amazon Seller Account
Sellers operating in Canada must address:
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GST/HST registration for Amazon sellers
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Quebec QST for Amazon sellers
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PST rules Amazon.ca
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Marketplace facilitator sales tax Amazon.ca
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CRA Amazon sales tax requirements
Failing to remit taxes before closure can trigger audits even after the account is closed.
What Happens After You Close Your Amazon Seller Account?
Once you stop selling on Amazon permanently:
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Listings are removed
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Selling privileges end
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Reopening requires a new entity and approval
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Brand Registry may be impacted
Your data remains archived, but access is limited.
How The We One Helps Amazon Sellers Exit Safely
As a full-service provider of Amazon marketing services, The We One supports sellers with:
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Account audits before closure
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Amazon account suspension help
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Safe closure strategies
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Tax and compliance guidance
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Transition planning to other platforms
We also help brands shift to Amazon content marketing strategy 2026, automation, or multichannel fulfillment instead of exiting completely.
Conclusion
Closing a seller account on Amazon isn’t just a click—it’s a process that impacts your finances, compliance status, and future opportunities. By following a structured Amazon account closure process, resolving obligations, and avoiding shortcuts, you can exit safely and professionally.
If you’re unsure, The We One is here to guide you every step of the way.
FAQs
1. Can I reopen my Amazon seller account after closing it?
Usually no. Amazon treats closures as permanent unless explicitly stated otherwise.
2. Is closing better than suspension?
Yes. Suspension damages your record, while voluntary closure preserves your standing.
3. Will I lose my funds if I close my account?
Only if unresolved fees, refunds, or compliance issues exist.
4. Should I close my account if it’s suspended?
No. Appeal the suspension first, then decide.
5. Do I still need to pay taxes after account closure?
Yes. Canadian tax obligations remain even after closure.
