As of 2022, Amazon has an estimated 9.7 million sellers globally, enabling retailers and brands to reach millions of customers and improve their profit margins.
However, amidst authentic vendors, there is a prominent presence of unauthorized sellers on Amazon who sell products without proper permission from the manufacturer or brand owner.
This raises a significant question: How to stop unauthorized sellers on Amazon?
Rest assured, unauthorized Amazon sellers are not invincible. Numerous effective strategies and programs can help brands successfully identify and remove unauthorized sellers on Amazon.
Types of Unauthorized Sellers on Amazon
An unauthorized seller is any individual, account, third-party reseller, or distributor who sells products on the Amazon marketplace without the brand’s authorization.
Below are some of the common types of unauthorized sellers on Amazon marketplaces:
Counterfeiters
They sell fake versions of branded products which are often indistinguishable from the original items. They deceive customers by selling low-quality products and destroying brand reputation.
Grey Market Sellers
They collect products through unauthorized channels, such as places with lower production expenses or selling costs. Since they disregard official distribution agents of the brands, they are considered grey market sellers.
Hijackers
These sellers exploit legitimate product listings by leveraging the existing Amazon Standard Identification Number (ASIN) to list their products without proper authorization. They offer products at lower prices, leading to unfair competition.
Liquidators
They acquire excess, discontinued, or unsold inventory from manufacturers, retailers, or wholesalers at discounted prices and resell them on Amazon without proper authorization from the brand.
Unauthorized Distributors
They collect products from manufacturers or authorized distributors without permission to resell them on Amazon, violating distribution agreements and undercutting authorized sellers.
Used Item Resellers
These resellers list used or refurbished items on Amazon without proper authorization, often misrepresenting them as new. This can deceive customers about the product’s condition, durability, and authenticity.
Retail Arbitrageurs
They purchase products from retail stores at discounted prices and resell them on Amazon without the brand’s approval.
Diverters
They buy products from the distribution channels or markets established by the brand or manufacturer at a lower price and sell them at a higher price on Amazon without the brand owner’s consent.
6 Steps to Stop Unauthorized Sellers on Amazon
Brands and manufacturers can leverage numerous measures and policies to remove unauthorized sellers on Amazon.
Step 1: Identify Unauthorized Sellers
The first step in effectively removing and stopping unauthorized sellers on Amazon is to identify them. For this, brands must regularly monitor the product listings and find the sellers without authorization. Usually, the products sold by the unauthorized sellers have the following characteristics:
In addition, brands can test-buy products from the identified unauthorized sellers to verify whether they violate the brand’s policies or sell counterfeit items. This can also be considered evidence when reporting them to Amazon.
Step 2: Contact Unauthorized Sellers via Amazon’s Messaging System
Once the unauthorized sellers are identified, brands can contact them through the contact information or the Amazon messaging system.
- Select the “Sold by” option on the Product Listing Page and click “Ask a Question.”
- On the Seller Messaging Assistant, select “An item for sale,” and add the product name and ASIN number.
- Brands can then request the sellers to stop selling the product, emphasizing that they are not authorized.
Step 3: Leverage Amazon Brand Registry
Amazon Brand Registry program provides multiple benefits for brands with registered trademarks and copyrights. It helps detect and report intellectual property(IP) infringement. Additionally, they receive assistance in resolving technical issues, listing discrepancies, and marketplace policy violations.
Furthermore, brands registered in the program enjoy priority for their content over third-party contributions. This helps remove any unauthorized sellers who attempt to introduce inaccurate or misleading information, such as incorrect bullet points or titles, on product listings.
Step 4: Implement Minimum Advertised Price (MAP) Policies
Unauthorized sellers, especially counterfeiters, sell products at lower prices than the established Minimum Advertised Price(MAP). As a result, authentic sellers lose the Buy Box wins to the unauthorized ones, resulting in low sales and profit margins.
Therefore, it is necessary to implement Minimum Advertised Price (MAP) policies to protect the brand’s profit margins. Regular MAP monitoring can help brands track and identify third-party sellers who violate MAP policies, preventing unauthorized sellers from selling products.
Read more: Best MAP Monitoring Software in 2024
Step 5: Use Amazon “Report a Violation” Tool
Amazon’s “Report a Violation” feature enables brands to report intellectual property infringement, such as unauthorized use of trademarks, copyrights, or patents, directly to Amazon. For this, they need to:
- Sign in to Brand Registry.
- Select “Report Violation” from the “Protect” dropdown menu.
- Choose the marketplace and provide the ASIN where the unauthorized seller is located, then click “Search.”
- Once the listing appears, click on “Show Offers” and select the unauthorized seller(s) to report them to Amazon.
- Fill in all necessary details, including contact information and an active email address, and click “Submit.”
- After filing the complaint and emailing Amazon, follow up with Seller Support to ensure the concerns are addressed.
Step 6: Register for the Amazon Brand Gating Program
In 2023, Amazon identified, seized, and appropriately disposed of more than 7 million counterfeit products worldwide.
Amazon has introduced multiple programs to prevent counterfeit sellers automatically. One such program is Amazon Brand Gating. It helps prevent unauthorized sellers from using a particular brand name or product ASIN number on Amazon. In order to gain authorization, resellers must provide:
- Manufacturer invoice from the last 90 days
- Written permission from your brand to sell products
- Pay a non-refundable fee of $1500 to the brand
Thus, brands can register for the Amazon Brand Gating program to protect themselves from counterfeit sellers.
Confused about the Amazon performance metrics? Check out our complete guide on 10 Amazon Seller Metrics Every Brand Must Monitor
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