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E-Commerce Term

Account health

Definition

The marketplace's own compliance score, which decides whether the store may sell.

Why It Matters

It is the risk that has no analogue in an offline business: a platform can suspend an account over metrics the seller does not control, and a suspended store has no revenue at all, not less of it. Reinstatement is a process with no service level. So the diligence item is the account health dashboard itself, its warning history, and how much of the revenue sits on the one platform, because a business that is a single account is a business with a landlord who never signed a lease.

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