07/04/2024
the biggest issues people run into with Amazon is sourcing from legitmate suppliers. Does Amazon care about your supplier if the catagory is ungated? What happens if you source from a website or retail store that doesn’t provide invoices?
You're right, sourcing reliable suppliers is a crucial part of being an Amazon seller. Here's the breakdown for ungated categories and supplier legitimacy:
Ungated Categories and Supplier Approval:
Amazon Doesn't Pre-Approve Suppliers: Even in ungated categories, Amazon doesn't specifically approve or verify your suppliers. They focus on ensuring you meet their selling performance metrics and can provide proper documentation if needed.
Importance of Legitimate Suppliers:
Account Health: Sourcing from illegitimate sources can lead to counterfeit claims or safety issues, impacting your account health. Amazon can suspend or terminate your selling privileges for such violations.
Product Quality: Unreliable suppliers might provide poor-quality products, resulting in negative customer reviews and returns, further hurting your business.
Invoices and Documentation: Crucial for Gated Categories: If you ever decide to sell in gated categories, you'll need invoices from authorized distributors to prove the product's legitimacy.
Good Practice for Ungated Categories Too: Having invoices from reputable suppliers demonstrates professionalism and helps during product listing or potential future account reviews.
What to Do if Supplier Doesn't Provide Invoices:
Find an Alternative Supplier: It's best to prioritize suppliers who provide proper invoices. They're more likely to be legitimate and ensure a smoother selling experience on Amazon.
Resources to Find Legitimate Suppliers:
Wholesale Directories: Look for online directories that list verified wholesalers for various product categories.
Trade Shows: Attend industry trade shows to connect with potential suppliers directly.
Manufacturer Websites: Many manufacturers have authorized distributor lists on their websites.
By focusing on legitimate suppliers and maintaining proper documentation, you can avoid unnecessary risks and ensure a successful Amazon selling journey..
Here's a more nuanced take on supplier legitimacy in the context of online arbitrage:
Focus on Product Authenticity: While Amazon doesn't pre-approve suppliers for ungated categories, you still need to ensure the products you source through online arbitrage are authentic. Avoid websites or stores with a reputation for selling counterfeit goods.
Consider Seller Reviews and Ratings: When sourcing from online retailers for arbitrage, check their customer reviews and seller ratings. This can give you insights into their legitimacy and the quality of the products they sell.
Invoices Might Not Be Available: In online arbitrage, invoices from the original seller might not always be obtainable. However, you can still maintain good practices:
Keep receipts from your purchases as proof of sourcing.
Focus on reputable online retailers with a history of selling genuine products.
Amazon's Focus:
For online arbitrage, Amazon is more concerned with your selling performance and adherence to their policies than the original source of the product (assuming it's in an ungated category and authentic).
In essence: Online arbitrage is a viable option, but prioritize reputable online retailers with a track record of selling authentic products. Maintain good records of your purchases (receipts) even if invoices aren't available.
