Seller_TRLYzzC1Ifoj2

I was approved to sell my product as a retail arbitrage

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or so you think!

This comes up too often, so I packed it all in one …..

I have seen a STEEP increase in sellers suspended for retail arbitrage. Some or all of this information applies to you. Your account may not be suspended yet. Maybe your funds are just on hold and you wonder when you will get paid.

Lot's of confused people here when it comes to Amazon's invoice/LOA requirements! (If a LOA was requested it MUST be provided and state permission to sell the brand ON AMAZON)

This usually confuses people that didn’t read Amazon’s policies (often also law) on sourcing, invoice requirements and Intellectual property.

Do you need a LOA (Brand's letter of authorization for you to sell their brand on Amazon) to list a product?

No, according to Amazon "in writing", you just need a distributor invoice showing you purchased 10 items of the same product to get approved to sell most brands

Can I get approved to sell items I purchased retail? Yes, sure, Whatever gets you to pay fees.

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So why would I suddenly need a LOA and my invoices are not accepted?

Because as soon as there is a complaint, from a buyer or competitor, claiming your item is not authentic,

Amazon will now request and demand... brand approved distributor invoices for everything you sold in the last year! And frequently along with that, they now want to see your LOA.

Amazon "assumes" you are authorized to sell the product, but they don't ask. They actually don't mind you to sell however you can and pay your fees, but will throw you under the next passing bus, at the first sign of trouble. While that sounds pretty mean, it really only catches up to sellers that didn’t waste the time to read laws and policies, before starting to run a business. The information has always been there. You agreed when you signed up that you understood all the policies. You just didn’t actually read them, who does…

That means without LOA and proper distributor invoice, your account will remain suspended for selling "counterfeits", for all affected products, any sales proceeds in your account will be confiscated and any products you have at FBA and cannot produce these documents for, will be destroyed as counterfeit.

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How is buying from Cosco/Wallmart/ not allowed?

To proof authenticity, one has to look at the supply chain.

From Brand to authorized distributor, from distributor to retailer from retailer to end consumer.

That supply chain ended, when you purchased it at retail. The manufacturer lost all control over the product at THAT POINT, the sale to you, the END CONSUMER. Since nobody can control if the product you are reselling is the actual product you got a receipt for, the supply chain (and authenticity) cannot be validated.

That also means all warranties and product backing also ends with you, holder of the receipt (not an invoice!!), and your product cannot be resold as new, as it now lacks that FULL warranty time (at least) and manufacturer backing. A new products MUST include all warranties

So what can I do now?

Honestly? Likely nothing, unless you have the required paperwork. You can try to go to Amazon’s seller university and watch the videos and then write an appeal apologizing and telling them what you did wrong, how and what you have learned now and that you will never list items again you are not authorized to sell.

Problem is, they will want to know how and where you will source your products in the future and unless you have a legit business, you wont get a wholesale account and brand approval easily. But you will need a distributor and a LOA to go with your appeal.

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So what do they need in my invoice to proof my items are authentic?”

INVOICES

Copies of invoices, receipts or other similar documents that demonstrate where your products are produced or manufactured

You invoice should include

• detailed list of products (at least 10 per item, Product name, model number or UPC that can be verified online)) ,

• terms of sale (net30/net60/cash..)

• must be by the brand itself or a brand authorized distributor (not a retail store for the general public, not some back door pallet seller wanna be distributor )***

• your full business name and address, as entered in seller central

• a COMPLETED transaction ( order shipped),

• suppliers full name and contact details, (e-mail, phone or both)

• Should reflect the sales volume of your product across all Amazon marketplaces in the last 365 days

• Should demonstrate your product’s full supply chain

***Should include contact information for the supplier(s) and the original manufacturer. We may contact suppliers or manufacturers to verify the documents

Your documents should be able to trace your products to the original manufacturer even if you did not purchase them directly from the original manufacturer. This may require requesting additional invoices or supply chain documentation from your supplier if you are not sourcing directly from the manufacturer.