Amazon’s Section 18: How to Legally Transfer or Restructure Your Seller Account

Amazon’s Business Solutions Agreement (BSA) is the contract every seller must accept to operate on the marketplace. Hidden within its dozens of clauses is Section 18, the provision that governs ownership transfers. Many sellers only discover this clause when they attempt to sell their business or convert their account to a new legal entity – often after their edits are rejected or their account is locked. Understanding Section 18 and complying with its requirements is essential for anyone planning to change the legal backbone of an Amazon seller account.

What Section 18 says

Section 18.2 of the Amazon Services Business Solutions Agreement states that sellers may not assign or transfer the agreement “by operation of law or otherwise, without [Amazon’s] prior written consent.” The clause provides one narrow exception: upon notice to Amazon, a seller may assign the agreement to an affiliate as long as the original seller remains liable for obligations that arose before the effective date of the assignment. Any attempt to assign or otherwise transfer the agreement without Amazon’s consent is void.

In plain language, Amazon is saying: you can’t simply hand your account to another person or entity. Without permission, the contract remains tied to the original seller, and unauthorized transfers can lead to immediate suspension or even permanent deactivation.

Why Section 18 matters to sellers and buyers

Amazon treats your seller account as a unique, non‑transferable contract. If you plan to restructure your business (e.g., from a sole proprietorship to an LLC), merge with an affiliate or sell your account to a third party, Section 18 dictates whether the transaction can proceed. Sellers who ignore this clause risk triggering Seller Identity Verification holds, account locks or suspension during due diligence. Buyers, on the other hand, need assurance that the account they’re acquiring won’t be clawed back by Amazon because the transfer was unauthorized.

When does Section 18 apply?

Section 18 comes into play whenever there is a change in the legal ownership of the account. Typical scenarios include:

Internal restructures. Converting from an individual to a company (LLC or Ltd.), merging entities within a corporate group, or reorganizing a holding structure.
Business sales and acquisitions. Selling your Amazon brand or purchasing an existing account as part of an asset purchase or share deal.
Cross‑border transfers. Moving the account from one country to another under a new legal entity.
Affiliate assignments. Transferring the account to a company under common control (an affiliate) – the only circumstance where notice, rather than full consent, may suffice.

If there is any doubt about whether a change constitutes an assignment, treat it as one and seek Amazon’s approval.

How to comply with Section 18

Prepare your documentation. Gather legal documents that explain the ownership structure before and after the change: articles of incorporation, asset purchase agreements, tax ID letters and a detailed organizational chart listing all ultimate beneficial owners (UBOs).
Submit a formal Section 18 request. Through Seller Central’s Account Health or Selling Partner Support portal, open a case citing Section 18 of the BSA. Explain the nature of the change (restructure vs. sale), provide the relevant documents and request Amazon’s written consent.
Wait for approval before making changes. Amazon must manually unlock the greyed‑out fields (entity type, legal name, country) before you can edit them. Do not attempt to change tax information, banking details or contact information until you have explicit approval.
Update information sequentially. Once approved, update the entity details first, then sequentially update tax forms, payment methods and contact information. Simultaneous updates can trigger fraud detection systems.
Document everything. Keep case numbers, submission dates and copies of correspondence. If Amazon asks for additional information or rejects a document, resubmit promptly and reference previous communications to avoid losing time.

Common pitfalls

Assuming an affiliate exemption applies. Only entities under common control qualify for the notice‑based affiliate exemption. Transfers to unrelated buyers require written consent from Amazon.
Making changes without approval. Updating the legal business name, tax ID or country without consent can cause Amazon to lock your account and freeze funds.
Incomplete documentation. Organizational charts missing UBOs or lacking signatures are a frequent reason Section 18 requests are rejected.
Neglecting post‑migration monitoring. Even after a successful transfer, monitor account health and respond to any verification requests; automated systems may flag accounts for further review.

Final thoughts

Section 18 exists to protect Amazon’s marketplace from fraud and to ensure that only verified entities operate seller accounts. While it may seem like a bureaucratic hurdle, treating this clause with respect is the key to a smooth transfer or restructure. By preparing comprehensive documentation, requesting approval in advance and following Amazon’s sequence for updates, you can navigate ownership changes without risking your hard‑earned account history.

If you’re unsure about how to interpret Section 18 or need assistance drafting your submission, consider working with Amazon‑experienced legal counsel or compliance specialists. Their guidance can help you avoid costly mistakes and keep your business moving forward.