Recently, Amazon launched a program toLarge-Scale Verification of Physical Addresses for Stores Operated by Hong Kong-Registered Companies... A large number of long-established stores that have been in business for many years have suddenly been subjected to reviews without warning, resulting in immediate account suspensions and the freezing of funds, while the rejection rate for new account registrations has risen sharply.

Many sellers are baffled: Their Hong Kong company has passed its annual review without issue, and their store has been consistently generating orders—so why were they suddenly flagged by risk control? The truth is:It’s not that Amazon is targeting Hong Kong entities; rather, a large number of shell companies in Hong Kong that use virtual addresses provided by shared secretarial services are being weeded out en masse.The

This risk control measure isA Double Whammy: Amazon’s Risk Control Measures and Regulation by the Hong Kong Registrar of Companies...This is no longer a matter of sporadic spot checks, but rather a comprehensive compliance screening. The European site has seen the highest concentration of triggers, and review standards for North American sites have tightened accordingly.

I. Why Are So Many Mainland-Based Stores in Hong Kong Being Hit in Large Numbers?

1. AI-powered identification of shared addresses within a cluster

Amazon's risk control system can identify “Multiple Businesses at a Single Address”. Cheap secretarial service registered addresses—where a single address is used by dozens or even hundreds of companies—are directly flagged as high-risk clusters, triggering in-depth reviews and even resulting in account suspensions; accounts under the same address will be subject to collective punishment."2. The addresses for all three locations must be exactly the same.

The registered address for a Hong Kong company, the Business Registration Certificate (BR) address, the Amazon account address, and the address for opening a bank account must match exactly, down to the last character.. Even minor discrepancies in abbreviations or punctuation can trigger an address verification check; if the verification fails, the store will be shut down immediately and payments will be frozen.

3. Shell companies have no evidence of actual business operations.The Hong Kong company was established solely for the purpose of registering with Amazon; it lacks audit reports and SCR filings for key controllers, and cannot produce evidence of physical business operations such as lease agreements or utility bills. When the platform requested verification, the company was unable to provide supporting documentation and was immediately deemed a fraudulent entity.4. Unauthorized changes to the entity constitute a high-risk operation.Amazon explicitly does not support arbitrary changes to the business entity of existing stores after registration. Many sellers have unilaterally changed their mainland stores to Hong Kong entities without going through the official approval process, which has directly resulted in account suspension and left them with no way out.

⚠️Consequences of Account Suspension: Listings removed, stores suspended, funds withheld; other accounts at the same address are also affected; the appeal success rate is extremely low, and a large number of accounts are permanently suspended outright.

II. 4 Major High-Risk Areas: Hong Kong Sellers Should Conduct an Immediate Self-Assessment

Pitfall 1: Still Using a Cheap Shared Secretary Service with a Virtual Address

A registered address for a secretary service, costing several hundred to over a thousand per year, can only be used to receive mail; it cannot be used to issue utility bills in the company’s name. If you receive a notice requesting address verification and cannot provide valid documentation, your appeal will almost certainly fail.

Pitfall 2: Inconsistent Address Information Across the Three Regions

Discrepancies—even minor ones—between the registered address, the Business Registration Certificate (BR), the Amazon account, and the address on file with the bank will trigger an in-depth KYC review.

Pitfall 3: Shell Operations with No Substantive Business Records

The Hong Kong company serves solely as a vehicle for opening a store; it does not handle auditing, tax filing, or SCR registration, and has no business documentation. When the platform requests proof of actual business operations, the company is unable to provide the required materials and is immediately deemed a fictitious entity.

Pitfall 4: Multiple Stores Sharing the Same Address, Cluster Registration

When multiple Hong Kong companies share the same registered office address in an attempt to create a network of accounts, they are highly likely to trigger cluster-based risk controls, posing the risk of a “one-strike-out” scenario where all accounts are blocked.

III. Scenario-Specific Solutions to Break the Deadlock

Scenario 1: Account is active and has not yet received a review notification (priority for rectification)

1. Change the commercial address for a Hong Kong independent entity to a "one household, one address" location

Requirements: A formal lease agreement with stamp duty; utility (electricity, water, and internet) bills issued in the company’s name for the past three months; the ability to receive a paper verification letter from Amazon; and the ability to display a company sign, all of which must meet the verification requirements of the Hong Kong Companies Registry.

Key Points:Registered Office Address, BR, Amazon Account Dashboard, Bank AddressKeep everything exactly as it isThe

2. Prepare a complete set of compliance documents for a Hong Kong companyComplete the registration of key SCR controllers; conduct annual reviews, audits, and tax filings on time, and avoid filing zero returns for extended periods; retain a complete set of business records related to procurement, logistics, and sales for the platform’s video verification.3. Isolate associated risksThe main store in Hong Kong uses a dedicated network and dedicated equipment and does not share its network environment with other stores, thereby avoiding collective liability.4. Build a backup structureDo not put all your eggs in one basket by relying solely on a single Hong Kong entity. Plan ahead by setting up compliant backup stores, gradually migrate your core listings and inventory, and ensure you have a risk contingency plan in place.

Scenario 2: You have already received a notice regarding address verification

1. If you are still using a shared virtual address,First, complete the change of address for your Hong Kong company, then update the address in your Amazon account. Submitting false documents is strictly prohibited., Submitting false information will result in a permanent ban. 2. Prepare a complete set of verification documents: a formal lease agreement with stamp duty, utility (water, electricity, or internet) bills in the company’s name from the past 3 months, actual photos of the storefront sign, and a bank-issued proof of address. 3. Ensure that all information exactly matches the details on the BR Business Registration Certificate; if a video verification is required, the legal representative should be familiar with the supply chain and store operations and answer all questions truthfully.

Scenario 3: Account Suspended, Funds Frozen

1. Do not repeatedly submit template appeals; submitting false information will result in your account being permanently locked. 2. If your original address is already on the platform’s blacklist, the success rate of an appeal is very low; we do not recommend persistently trying to recover an old account. 3. Request the release of funds according to Amazon’s official process; do not trust intermediaries who claim they can “unlock your account for a fee”—most of these are scams.

IV. Two Options: Continue Using the Hong Kong Entity, or Switch Entities

Option A: Continue to retain Hong Kong as the main entity

Suitable for: Companies in Hong Kong that require cross-border settlement and brand expansion. Mandatory requirements: A unique "one account, one address" structure; a complete set of address verification documents; up-to-date annual reviews and audits; and full SCR filings—shell companies are strictly prohibited.

Option B: Switch to Another Compliant Entity

If you cannot afford the cost of a separate Hong Kong business address, you may want to consider: a general taxpayer entity in mainland China or a North American entity with an EIN.

Important Reminder:You cannot directly change the business entity in the old store’s admin panel; you must open a new store and smoothly migrate links and inventory. Do not forcefully change the business entity of the old store.The

In the past, “Hong Kong Company + Affordable Secretarial Services and Virtual Office Address” is the choice many sellers make to get started at a low cost. But now,The practices of virtual affiliation and shell companies have reached a compliance tipping point. This round of action by Amazon isn’t just a passing trend—it’s a long-term, routine screening process. Rather than waiting until your account is suspended or your funds are frozen before taking corrective action, it’s better to conduct a self-assessment and make necessary adjustments immediately, while also putting risk mitigation measures in place.