Selling merchandise through online platforms offers a prime opportunity to expand your customer base, especially if you have official authorization as an Amazon seller. Nevertheless, it is crucial to acknowledge that not all sellers adhere to ethical practices. The presence of unauthorized sellers on Amazon has emerged as a significant issue recently, negatively impacting the profitability and reputation of many brands.
The number of active Amazon sellers continues to increase each year. The vast size and the aspiration to claim a portion of the market have led to the emergence of unauthorized sellers as an ongoing issue in Amazon’s marketplace.
Understanding how to handle unauthorized resellers effectively is a vital responsibility for brand owners. This piece will guide you through practical approaches for handling unauthorized sellers, preserving profitability, and safeguarding your brand reputation.
Who is considered an unauthorized seller?
Unauthorized sellers purchase your products in large quantities and sell them without your consent. They may adopt a similar brand name or opt for a different one. Regardless, these resellers are detrimental to your business in two distinct ways:
- Some sellers offer your brand’s products without authorization and often sell them at prices lower than the retail price. These untrustworthy resellers tend to undermine your minimum advertised price (MAP), allowing them to win the Buy Box. As a result, many Amazon shoppers searching for the best deal will likely choose to purchase from these unauthorized sellers instead.
- Unauthorized sellers disregard the importance of providing excellent customer service, resulting in potential negative shopping experiences or the delivery of damaged merchandise. Engaging in improper reselling practices can harm your brand’s reputation and deter potential customers from purchasing similar products due to negative reviews.
So, how do we deal with these unauthorized sellers?
When handling unauthorized sellers, Amazon may not be the most reliable option. Therefore, it is up to you to take control and follow the steps outlined below to eliminate these unauthorized sellers from your listings.
1. Cease and Decease Letters
Contact sellers not authorized through Amazon’s messaging system or the contact details mentioned on their seller profile. Kindly ask them to cease selling your product, highlighting that they are unauthorized.
If they don’t respond to your message, email them a Cease and Desist Letter, asking them to halt the sale of your products.
2. Utilize the Report a Violation Tool
If the unauthorized sellers have not responded to your Cease and Desist Letter, conduct a trial purchase, capture an image of the defective product, and notify Amazon of this incident through the report a violation tool.
3. Ensure you are Brand Registered
Verifying your brand’s registration is important before contacting Amazon. This is crucial because Amazon provides enhanced support for brand-registered businesses.
4. Apply for Amazon’s Brand Gating:
If you are a brand owner dealing with the ongoing challenge of unauthorized sellers, you may consider applying for Amazon’s Brand Gating program. This program effectively limits the ability of unauthorized sellers to list and sell products under your brand, offering you enhanced protection and control.
To apply for brand gating on Amazon, follow these steps:
- To start, initiate the registration process for your brand using Amazon Brand Services. It is crucial to have a currently active registered trademark, which can be presented in various formats, such as textual content or images containing words, letters, or numbers.
- After Amazon approves your brand registration, compile a thorough inventory of the ASINs (Amazon Standard Identification Numbers) that you intend to have restricted. When applying for brand gating on Amazon, include essential information like your seller ID, the current roster of authorized sellers, and any proactive actions you have taken to combat counterfeiting. By providing this information, you can accelerate the brand-gating procedure.
- To complete your brand gating application, simply submit it. Once submitted, Amazon will handle the entire process, removing the burden of continuously monitoring the marketplace for unauthorized sellers or counterfeit items from you.
5. Enroll in Amazon’s Transparency Program:
Amazon’s Transparency program offers a distinctive serialization code for every manufactured unit. By participating in this program, you can enhance the ability to trace and prevent the circulation of counterfeit products. The brand and customers will have the means to authenticate the product by scanning its barcode using the Amazon app.
Conclusion
As eCommerce continues to expand, it is crucial to address and tackle the issue to prevent it from worsening. Implementing the solutions mentioned earlier can safeguard your brand’s reputation and gain more control over pricing. It is imperative to remain vigilant and actively monitor platforms like Amazon for unauthorized sellers and counterfeit products.
Need additional help to deal with resellers? Reach out to our team of experts.
Keep up with the latest Amazon and Walmart news updates and subscribe to our BellaVix newsletter 👇👇👇