Amazon Brand Restrictions – What you should know
Since gaining popularity as a platform for those looking to supplement their income online, the landscape of the Amazon Marketplace has changed dramatically. Amazon.com Inc’s latest financial results reveal that in the fourth quarter of 2017, Amazon Marketplace sellers accounted for over half of units sold. However, this dramatic rise in profitability has prompted some manufacturers to become increasingly protective over their brands, leading to increasing brand restrictions
Where does online arbitrage stand?
Online arbitrage is a well-established economic concept and trading strategy used to create profit from price discrepancies. This extends well beyond the realm of retail; it’s used on the stock market, in the buying and selling of cryptocurrencies and even in the coffee trade. But like any economic practice, it’s subject to restrictions and regulations. Amazon is by far the most popular website for online arbitrageurs, and the Marketplace has become synonymous with the practice.
How do I know which items are restricted?
SourceMogul enables you to check whether a product is restricted while you are sourcing items. It will let you know if you are allowed to sell that product. Additionally, when listing a product, Amazon will usually flag up any restrictions if you haven’t already checked.
Brands which are restricted on Amazon cover dozens of different categories and subcategories from cosmetics to electronics, home decor to alcohol, so it’s always important to check. Some websites attempt to compile a comprehensive list of Amazon’s restricted brands, but it is important to note that these may not be up to date and that if a brand is listed, it doesn’t mean that every item under that brand is subject to restrictions.
Furthermore, some accounts will be restricted for some items, whereas others aren’t, so its important to note that there isn’t really a single list out there to check against.
If you’re interested in getting started in online arbitrage but are worried about navigating and complying with brand restrictions, SourceMogul’s up-to-date database can alleviate the stress of figuring out whether or not a product is restricted, as we will verify that a product has no third-party restrictions in place, steering you clear of any unnecessary legal trouble.