It’s no secret that online markets like Amazon have a problem with third-party vendors that offer counterfeit copies of branded products. The company’s latest effort to reduce the flow of counterfeiting involves charging a commission to sellers who wish to include certain reputable brands in their stores.
These sellers must also show invoices from the manufacturers or distributors of the brands they wish to sell to show that they have purchased a certain number of items in the last 90 days. By presenting these procedures and financial locks, Amazon is trying to eliminate sellers who are not willing to show that they do not sell imitations. “We want customers to buy with confidence from Amazon,” said Erik Fairleigh, a company spokesperson. “For certain products and categories, Amazon requires additional performance checks, other qualification requirements and commissions.”
Although Amazon has not published a list of brands covered by the new pricing policy, some merchants tell CNBC they have received variable rate notifications for certain products. For example, some third-party vendors have to pay $1,500 to sell Nike, Adidas and Asics shoes, while others have charged $ 1,000 for Hasbro, Lego and Pokémon products, CNBC reports.
Sellers say the new policy will reduce their profits and could put others off the market by reducing the elimination of retail arbitrage, where companies buy clearance, closing and other promotions at retailers to sell products online.
Finding out which brands are sold on Amazon and which are not, is not always an easy task. The website and its third-party marketplace combine everything together, so the fact that you can find a Chanel bag on Amazon.com does not mean Amazon sells it for the retail price suggested by the manufacturer.
Amazon has recently resumed the sale of Google Chromecast and Apple TV, two streaming devices that compete with its Fire TV platform. It’s a move to reduce the tension between Google and Amazon after the old man has blocked access to YouTube on Echo devices.
Most luxury brands do not sell their products on Amazon, despite the retailer’s drive to move further into luxury space. He was successful in this space when he signed deals with Michael Kors, Calvin Klein and Kate Spade, according to Fortune. Some brands have endured. Many products sold on Amazon with luxury brands are only licensed products, such as watches and fragrances. The finance director of the luxury conglomerate LVMH, for example, said in 2016 that “for now there is no way to do business with them”.
In an effort to court the brands, Amazon has stepped up its third-party market surveillance through new agreements. Some brands enter into agreements to sell part of their product, for example, something small, such as perfumes or socks, in exchange for this surveillance. Other brands, in particular footwear and outerwear brands, have a relationship with the Amazon branch, Zappos.com, but not with Amazon itself.
How to sell on Amazon
- Create an account. First thing you should do is you need to create an Amazon Seller account if you do not already have one. You need to make sure to read the “Before Your Register” portion on the web page. It provides info about the two types of Amazon Seller accounts, Professional and Individual. If you do not know which type will you use, the answer is simple. If you are going to sell more than 40 items in a month, you need to use a Professional account; otherwise, you should select an Individual account. Why is 40 items the cut off point? Amazon will charge you $0.99 per item if you are selling on an Individual account. So, if you are going to sell 40 items a month, you might as well pay for the $40 a month Professional account. After choosing your account type, you will be asked to login or create an Amazon account using your preferred email. From then on you will need to supply the needed information:
- Business name and address
- Agree to seller agreement
- Mobile or telephone number
- Billing method/ deposit- chargeable credit card for professional account
- Tax information- if signing up for professional account
For your seller information, you will need to supply your name and address and as well as a “Display name”. This will be the name that the buyers will see next to the item you are selling. It can be anything you want, but remember it needs to be in public form. Next thing you need to do is you must verify and confirm your identity through a phone call or text message. Last thing you need to do is to enter your credit card and bank information for deposits. You will need to access to your 9-digit routing and bank account number. Your account is now created. As of the moment, you should now be greeted with a home screen that looks fairly empty.
- List your items. After finishing in creating you account, you need to list the items you want to sell. When you add your first product, you want to go to “Inventory” in the top of your screen and tiick “Add a Product”. Once you tick “Add a Product” you will be directed to search for your product. You can search through the barcode, however you can also search by the product name. But if you are selling your own product, then you do not need to create a new product. After you select your product, you will be taken to a page to enter important product information. These are three main things you must enter:
- The price of the product
- The condition of the product
- Dilemma: ship by Amazon or ship by yourself
For pricing, you can choose what you feel is worth selling your item at. For the condition, be as honest and descriptive as you can. You are just required to enter minimal pieces, so you need to know on how to sell your product through th descriptions.. However, you will be much more likely to sell it if you offer an additional description.
What are the restricted products in Amazon?
Customers have bear in mind that they can always buy with confidence on Amazon. The products that Amazon are selling must comply with all the laws and regulations as per Amazon’s policies. Selling illegal and restricted items are strictly prohibited. If you want to supply products to Amazon, might as well check first the restricted products before you sell. If you sell a product that violates the law or any of Amazon’s policies, we will take corrective actions, as appropriate, including but not limited to immediately suspending or terminating selling privileges, destroying inventory in our fulfillment centers without refunding, returning the product, terminating the business relationship, and permanent withholding of payments. Civil and criminal liabilities are also one way to ease the crime rate.
- Amazon device accessories
- Amazon devices: fair use and compabitility guidelines
- Animals and animal products
- Art-fine art
- Art-home decor
- Automotive and powersports
- Cosmetics and skin/hair care
- Currency, coins, cash equivalents and gift cards
- Batteries and charger
- Mobile phone/ laptop computer batteries and chargers
- Dietary supplements
- Drugs and drug paraphernalia
- Eclipse glasses and filters for solar viewing
- Explosives, weapons and related items
- Fidget spinner
- Fire and other safety products
- Fire and smoke masks
- Food and beverages
- Chilled and frozen foods
- Organic products
- Gambling and lottery
- Hazardous and dangerous items
- Human parts and burial artifacts
- Infant car seats
- Infants sleep positioners
- Jewelry and precious gems
- Laser products
- Medical devices and accessories
- Offensive and controversial materials
- Plants, plant products and seeds
- Postage meters and stamps
- FBA prohibited products exceptions
- Recalled products
- Recycling electronics
- Sex and sensuality
- Stolen properties and lock picking devices
- String lights
- Subscriptions and periodicals
- Surveillance equipment
- Throwable personal flotation devices
- Tobacco and tobacco related products
- Warranties, services plans, contracts and guarantees
Fortunately, this blog post gave you all the tools and information you need to start selling on Amazon. Be sure to keep this publication marked as a resource or guide, for you’ll probably have questions while you are configuring out your business front on Amazon.
Amazon is a powerful market, whether you sell it exclusively or simply use it as another sales channel. It can be a steep learning curve, but if you have time to master it, start now and good luck as you strive for success!