[Part 1] Why it seems like Amazon doesn't want any 3p sellers on its platform anymore!
Okay, I will be posting truths, facts I have observed after being on the Platform for over 2 years (I guess) and why FBA Wholesale is not a viable business model unless Amazon fix these things, in this brief I will be sharing first thing that as far as I understood makes Amazon totally unsafe place for its 3rd Party sellers.
Policy on LOA or Letter of Authorization.
So few months back out of nowhere we received section 03 performance notification of in-authenticity about one of our products and Amazon demand two things
1. Video call interview.
2. All supply chain documents including LOA.
We had everything except for LOA and we were given 14 days to appear for video call interview, we approached distributor to get us brand LOA and after pleading to distributor and brand, we were given LOA for that product, proving that we were selling legit product.
We had plans to invent over $50k in this business model this year but after this LOA episode, Amazon made us really think about it, after thorough consideration we decided to close our Amazon business, because we have been selling listings that brands allowed 3p seller to sell on Amazon but those brands were not giving LOA to anyone and since Amazon policy includes LOA to prove supply chain.
We couldn't take this risk further, we believe Amazon unreasonable policy with regards to LOA means Amazon doesn't want any 3p seller anymore.
And if you don't have LOA that means as per Amazon policy you selling counterfeit even if you have sales agreement, invoices, bank statements, receipts, shipping labels, purchase orders, even if you were shipping directly from the brand warehouse etc but if you don't have LOA, you are doomed and Amazon will suspend/deactivate you for good (i heard after video call, if they suspend/deactivate you, that means game over for good), so that wastes your years of efforts, money invested into building your business but also Amazon seizes your funds and destroys your inventory because again you are guilty unless you have LOA.
This is one reason we are quitting on Amazon, in the next number of posts I will share few more.
[Part 1] Why it seems like Amazon doesn't want any 3p sellers on its platform anymore!
Okay, I will be posting truths, facts I have observed after being on the Platform for over 2 years (I guess) and why FBA Wholesale is not a viable business model unless Amazon fix these things, in this brief I will be sharing first thing that as far as I understood makes Amazon totally unsafe place for its 3rd Party sellers.
Policy on LOA or Letter of Authorization.
So few months back out of nowhere we received section 03 performance notification of in-authenticity about one of our products and Amazon demand two things
1. Video call interview.
2. All supply chain documents including LOA.
We had everything except for LOA and we were given 14 days to appear for video call interview, we approached distributor to get us brand LOA and after pleading to distributor and brand, we were given LOA for that product, proving that we were selling legit product.
We had plans to invent over $50k in this business model this year but after this LOA episode, Amazon made us really think about it, after thorough consideration we decided to close our Amazon business, because we have been selling listings that brands allowed 3p seller to sell on Amazon but those brands were not giving LOA to anyone and since Amazon policy includes LOA to prove supply chain.
We couldn't take this risk further, we believe Amazon unreasonable policy with regards to LOA means Amazon doesn't want any 3p seller anymore.
And if you don't have LOA that means as per Amazon policy you selling counterfeit even if you have sales agreement, invoices, bank statements, receipts, shipping labels, purchase orders, even if you were shipping directly from the brand warehouse etc but if you don't have LOA, you are doomed and Amazon will suspend/deactivate you for good (i heard after video call, if they suspend/deactivate you, that means game over for good), so that wastes your years of efforts, money invested into building your business but also Amazon seizes your funds and destroys your inventory because again you are guilty unless you have LOA.
This is one reason we are quitting on Amazon, in the next number of posts I will share few more.
29 risposte
Seller_CW0P5hgbsiqWX
INVOICES:
Amazon knows what a commercial invoice includes. An invoice is used when Your USA business has a retail commercial credit account with the manufacturer. Most all invoices include all of the following:
- YOUR: business name, business address, business phone, sales tax exempt number, your EIN number, your credit line, and terms of sale
- MANUFACTURER’S: address, phone, EIN number, account Rep’s name & phone number
- PRODUCT’S: quantity, SKU-Model number,
- DISCOUNTS PROCESSES ON THIS PURHASE: quantity, sale, specials
- TERMS OF SHIPPING: method, who pays, company used, tracking number
- TERMS OF PAYMENT: 30 days, 60 days, 90 days, interest assessed
Some have more, but they all use the same basic format. Even when you call and make a small online order and pay by credit card, an invoice is still sent to you separately containing all of the above.
If you purchased the items from a distributor using cash and carry, or on-line with a credit card, and paid sales tax on it, you are not buying wholesale from the manufacturer.
Letters of Authorizations, the trick request by Amazon.
Did you notice that Amazon always asks for a manufacturer’s invoice first, then asks for/or a letter of authorization? Amazon knows how businesses operate.
If you have a commercial retailers account with a manufacturer, your invoice as described above will suffice. You will not need a Letter of Authorization because the invoice says it all. One call to the Rep's phone number on the invoice, and everything is resolved.
If you do not actually have a commercial account with the manufacturer, Amazon knows companies will not give any letter of authorization to individuals without a commercial account.
Seller_pTj1n4z2Twkii
Thank you @Seller_CW0P5hgbsiqWXfor stopping by and sharing your opinion and if this what you are saying is objectively valid, true, will work, then I believe we have one less reason to quit Amazon but I need to hear it in written straight from the horse mouth.
Again thank you for stopping by and sharing your valuable opinion. :)
Seller_CW0P5hgbsiqWX
OP: "but I need to hear it in written straight from the horse mouth."
Don't hold your breath. Have you noticed that Amason never comes right out and says anything. Any response is always stated in gray multiinterpretable language to no reply at all.
Seller_pTj1n4z2Twkii
That I totally agree, either it will say something that won't be clear enough to make a reasonable conclusion or just copy paste something that will be broadly related to the subject matter at hand.
As far as I remember, for LOA Amazon says something along these lines "... sometimes we believe that you what you are selling is not legit and thus we may require of you to provide us LOA for that listing..." and this is why it makes it totally unsafe for legit 3p sellers here.
Seller_guCaS93YGnu0t
I would like to add that there is a reason that Amazon wants this information. As frustrating as it is to deal with Amazon, the gating of brands and categories has cleaned up a lot of the catalog and has eliminated many bad actors. I do like to know that I am competing against real sellers selling real merchandise. The knockoffs, generics and me-too merchandise are still there, but it's off to the side and easier to recognize. Years ago it was a complete free for all and there would several duplicate listings each with dozens of sellers selling who knows what from where.
Seller_pTj1n4z2Twkii
@Seller_guCaS93YGnu0tthanks for stopping by and sharing your valued opinion :)
I am sure there are benefits Amazon is taking from this whole LOA policy but honestly we were in talks with a brand, requesting them to give us LOA and we were willing to purchase almost $30k worth of inventory from them but it all failed because brand wasn't going to give us LOA... they said none of their sellers have LOA...
Seller_CW0P5hgbsiqWX
OP: "Years ago it was a complete free for all and there would several duplicate listings each with dozens of sellers selling who knows what from where."
Really the whole post was nice. Do you miss those days?
Those darn Bots are still consolidating listings from 20 years ago.
Seller_pTj1n4z2Twkii
Sellc, I have been around on Amazon as seller for just two years but I guess there are better ways to handle these things, just assuming or labeling a seller guilty of fraud, counterfeit just because they don't have LOA doesn't mean they are guilty.
I want honest sellers, sellers having integrity here, I don't want 'those' sellers that come from far off places, outside of USA, who absolutely lack any moral compass, values and business ethics... and are ruining this great platform, people lives with their very immoral business practices...
Amazon you can do better than that, I am sure you can, Amazon needs another Jeff like guy with a vision, a mentor like him is needed here again or else things will get tough for everyone here.
Seller_pTj1n4z2Twkii
@Seller_CW0P5hgbsiqWX please may I know how long have you been on Amazon and the suggestion you provided at the top about LOA and brand/manufacture invoices and how all of this works, has this always helped you in avoiding LOA ? do you still work with brands/manufacturers/companies who don't provide LOA because you have tested suggested approach over and over ?
Your kind answers to these questions would not only help me but also other new or uninformed sellers :) , thanks.
Seller_CW0P5hgbsiqWX
OP: "please may I know how long have you been on Amazon and the suggestion you provided at the top about LOA and brand/manufacture invoices and how all of this works"
I have been in the mail order business since 1971 and selling on Amazon since 2000.
This is the secret to successful online sales. run your business the way professionals do.
All of that is avoided by simply buying from the manufacturer of the products you sell. The easiest solution is to attend the ASD Show in Las Vegas the 2ne week of March 2025. It lasts a week. thousands of manufacturers from all over the world will display there showing millions of items they produce. Macy's shops there, Retail stores from all over the country ship there, Amazon shops there, and hundreds of successful Amazon sellers shop there as well. If only costs showing your retailer's license to get in the door.
Don't think they will not sell to you, because all of those manufacturers displaying are there to get new buyers. $100 minimum purchase will work just to get your new business. They all have the invoices Amazon accepts and the salesman you talk to will be your company sales rep. Even if you do not buy anything, let them scam your badge: You will be on their wholesale mailing list for a year and can purchase anything at any time you like. Simply look it up online and register, your badge will be waiting for you when you arrive.
Seller_pTj1n4z2Twkii
Thanks @Seller_CW0P5hgbsiqWX, I will definitely make registration for the ASD Show, let's see how it goes... can I have like your personal email address, my name is Arsh btw :)
Seller_pTj1n4z2Twkii
Hi mods, hope all of you are doing good; can anyone of you please confirm above about Invoices and LOA suggested by @Seller_CW0P5hgbsiqWXthat it is correct? sorry for tagging so many mods but I really need an answer to this, please!
@Micah_Amazon@Steve_Amazon@Connor_Amazon@Sandy_Amazon
@Blake_Amazon @Michelle_Amazon @Tatiana_Amazon
@Jaijai_AMZ_136
@Roberto_Amazon
Seller_IFRrkIcoHoGF8
deferred transactions is another scam. Another way to hold out on our money for an additional 3-4 weeks AFTER DELIVERY. NEW RULE
Seller_pTj1n4z2Twkii
Guys who are down voting this should at least give their reasons, that would help clarify things, hopefully!
I am waiting for the few good men/women in Amazon aka mods to share their point of view with regards to this, especially from Amazon policies perspective.
I would be really happy to be proven wrong. :)
Seller_BE3xPpZWhTS9Z
You lost me at
> We had everything except for LOA
Without an LOA, you have two choices: don't list the product or list it knowing you risk suspension or worse. It's pretty clear and simple, unlike so many other obligations on Amazon.
Glad you got it worked out, though. Congrats!
Seller_mFUNUCCYB0cok
Oh, they want 3P sellers! But ONLY 3P Chinese sellers!!
Seller_yRPVJN0Mtgu2Y
Always makes me wonder why they have a "used" collectible listing type if you need LoA...
Wally world will get bigger and amazon will see a class action it's inevitable now. This doesn't mean I'm going to sell my AMZN stock tho ...
