What AMZ Sellers Must Know about Authorization Agreements & Brand Exclusivity
As an Amazon seller with a growing business: chances are either you are going to obtain distribution agreements from brands so you can sell their products online, or you’re a private label seller who’s developed your own brand and you want to give other sellers the opportunity to sell your products with an authorization agreement.
What you want to make sure is that you are setting parameters as to how and where those people in companies can sell your goods.
More importantly, make sure that you set forth remedies. You want to put some teeth into that agreement. What happens if one of your distributors starts selling your products on a platform where you do not give them permission, who’s going to pay for the brand protection? Who’s going to pay the costs of having us monitor those sellers and getting them off your Amazon listings and on other platforms.
You want to make sure that the ramifications are set forth, who pays the costs, how you’re going to track it and what your termination rights are in terms of your distribution agreement.
If you are the recipient of a distribution agreement, you need to make sure that you understand every single term and every single condition that pertains to you as a seller. There are many brands that will give you an authorization agreement that fail to limit, where you can sell, and then you’re able to sell it wherever you want. Other brands will work in some of the factors we’ve talked about today, where they do limit you and what the ramifications are.
What are the brands remedies against you?
If you violate the agreement and who is responsible, if you sell your products to somebody else and they then sell online when they’re not supposed to, there is no firm in the world that has helped more Amazon sellers than us. If you need further information about distribution agreements and how they pertain to Amazon sellers, contact us for a free consultation 1-877-9-SELLER.