Hello Everyone. I wanted to share this story with you. I’ve been with Shopify since the end of 2020. After spending an entire year developing the webshop by myself, I finally started seeing a few orders placed through my shop in the third quarter of 2021.
Regarding the commodities sold from my shop, they are die-cast miniatures (or as Google would classify it, die-cast toys).
I have spent a lot of time engaging the demographics to the point where they trusted placing orders online and having them shipped or picked up at my brick and mortar location.
I was also granted the ability to sell a renowned brand as an authorized reseller - which greatly helped bolster the legitimacy of my enterprise. Shortly after, another submitted application was granted approval to carry another renowned brand.
Fast forward to March 2022, orders were being placed for product that was in stock, on its way, or currently being purchased via pre-order. A sharp and exciting climb was observed in March/April with a decent four figure total for monthly orders.
Shopify then placed my payouts on hold. They wanted verification with a Government issued I.D. That was done.
Waiting ensued. More than a week had past and there was no change on this hold. I reached out to Shopify support which lead to risk management contacting me.
Risk management stated that I was selling branded product - pointing out examples - and proof was needed in the form of invoices as well as letters of authorization from each brand.
In response, I stated that letters of authorization are not issued but invoices are given for dispatched orders once the application to the respective distributors are approved. and some brands manage the product distribution themselves.
I submitted the invoices that were currently on-hand, and even stated to Risk Management that items on pre-order currently have no invoices generated and won’t be available until the products have been dispatched or received.
Risk Management demands invoices for car manufacturers such as Toyota and Audi. It was explained to them that purchases are not made from Toyota, Audi, etc. These diecast miniatures (of real cars by Toyota/Audi/etc) are replicated under license from the brands that I sell. What is even more amazing about this is the invoices that were submitted did list replicated miniatures of Toyota and Audi Models!!
Pictures were also sent of the physical products being sold via Shopify to illustrate the branding of the products - which was not any automotive manufacturer.
Risk Management disabled my store and told me that I have until May 9th 2022 to retrieve all data after which I won’t have access to it.
I have communicated with other retailers, who also utilize Shopify and Shopify payment processes, regarding this matter they said that also had to submit invoices but they never experienced any of what I have written.
This is all very damaging as several orders were pre-orders in which partial payment was made. Furthermore, pre-orders were placed in December 2021 and Jan/Feb 2022 and those orders were fulfilled.
Edit: There have never been any chargebacks, it must also be stated.
Where is the risk, and where is your logic, Risk Management?