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Amazon Requiring Sellers To Comply With Updated Supply Chain Standards on January 19, 2023

Amazon is requiring its selling partners (third-party marketplace sellers ) and suppliers to abide by new Supply Chain Standards on January 19, 2023.

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“Products sold in Amazon stores must comply with these standards and be produced in a way that respects human rights and the environment and protects the fundamental dignity of workers,” the company said in its announcement.

The updates to the standards policy include additional requirements, expectations, and clarifications, such as:

  • Updated requirements to protect workers from harmful recruitment and engagement practices, including providing workers with clear, understandable documentation of the employment terms and conditions before the start of their employment.
  • Clarification for suppliers on having effective grievance mechanisms that workers can use to raise concerns without retaliation.
  • New mandatory remediation if any cases of child labor are identified.
  • Clarification for suppliers on providing workers with a safe and healthy work environment that avoids harm to workers’ health.
  • New prohibition of land-grabbing and any illegal use of natural resources.
  • Clearer specifications suppliers must comply with in regard to applicable privacy and information security laws and regulations.

The newly updated Amazon Supply Chain Standards can be found here.

Some Amazon Sellers “Amused” by Update

Comments on the Amazon Seller Forum announcing this new requirement were a bit sarcastic as some sellers believe the company should apply these standards to themselves first. Here are some examples:

“If this were truly adhered to, 90% of the products sold here made in China would be banned,” said one seller.

“So does this mean that all of the Amazon products made in China will be removed from the platform? Starting with million[s] of such products sold by Amazon directly…,” commented another seller.

“When did you become OSHA? How are you going to enforce this? This would probably take out all of your Chinese sellers,” questioned and opined another seller.

Regardless of one’s viewpoint about Amazon’s business, the company will be requiring third-party marketplace sellers to adhere to these updated Supply Chain Standards on January 19.

It may mostly be legal cover for the company, but responsible sellers should ensure they are in compliance with these common-sense standards anyway.

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