The INFORM Act and Solution Providers: More Transparency, More Opportunities
The INFORM Consumers Act, a federal law slated to take effect on June 27, 2023, could reshape the relationship between Solution Providers and high-volume sellers on e-commerce platforms such as Amazon and eBay. By demanding the public disclosure of specific business-related information, the Act gives Solution Providers a window into the business entities of high-volume sellers, potentially enabling them to fine-tune their services and deepen their understanding of this key segment.
Understanding the INFORM Consumers Act
The INFORM Consumers Act imposes new requirements on high-volume sellers, defined as entities that have sold 200 or more new items and have racked up gross revenues of $5,000 or more within any continuous 12-month period during the previous 24 months. Under the Act, these sellers are obligated to provide, and keep current, specific business information, which will be publicly accessible.
Amazon's Adaptation to the INFORM Act
Amazon has embraced the requirements of the INFORM Consumers Act with a commitment to ensuring a trusted environment for both customers and sellers. Sellers will need to provide a range of information to Amazon, such as their name, business address, bank account information, a working email address and phone number, and a tax identification number.
Moreover, Amazon plans to notify customers in shipping confirmation emails if their order was supplied by a different seller than the one they ordered from. This added layer of transparency could help Solution Providers understand the full spectrum of a seller's activities, which in turn can inform their service offerings.
eBay's Approach to the INFORM Act
eBay's approach to the INFORM Consumers Act mirrors Amazon's closely. The e-commerce platform will require high-volume sellers to provide similar business-related information. If a seller's annual revenue exceeds $20,000, eBay will include their name (or company name) and full physical address in purchase confirmation emails and order details.
This increased transparency provides Solution Providers with valuable information, which can be utilized to better understand the business behind a seller account, tailor their services accordingly, and potentially identify new opportunities.
Conclusion: The INFORM Act’s Implications for Solution Providers
The INFORM Consumers Act could be a game-changer for Solution Providers working with high-volume sellers on platforms like Amazon and eBay. The Act’s emphasis on transparency provides Solution Providers with a clearer picture of the high-volume sellers they serve, which could in turn enable them to deliver more tailored, effective solutions.
In an e-commerce landscape that is constantly evolving, the INFORM Act could provide Solution Providers with valuable tools to navigate this dynamic environment, strengthening their offerings and fostering a more robust understanding of their client base.