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Contents
(click titles to visit the desired section)
The Mind of a Million Dollar Amazon Seller
The Laws
The Mindset
Setting Up Your Company to Receive Vendor Goods
Setting Up Your Company
How to Contact Vendors
How to Combat All Claims
Conclusion
BONUS (Need Help?)
The Mind of a Million Dollar
Amazon Seller
In order to appreciate the fine art of growing a real and sustainable
business on Amazon we need to peer into the mind of the top 1% of
Amazon sellers and think like they think.
● For the purpose of this instruction let’s call these top 1% sellers
“​Power Sellers​”.
● For the purpose of instruction let’s call every other seller an
“​Average Seller​”. Average Sellers would include and order of
Arbitrage seller or Wholesale/Private Label Seller.
● For the purpose of instruction we will call all manufacturers,
brands and distributors “​Vendors​”.
What separates the Power Seller from
the Average Seller?
First let’s outline the mind of the Average Seller:
1. Average Sellers may live in fear because they’re not quite sure of the
dynamics of the laws governing the sale of the items they acquire.
a. Arbitrage sellers are specifically selling the goods of brand
owners without permission.
b. Average Sellers know that they don’t have permission so they
live in fear that a Brand Owner or Amazon may take some kind
of punitive action against them
2. Average Sellers spend a lot of time sourcing product, especially
arbitrage sellers. They spend so much time that they hit a cap and
can’t grow past a certain point.
3. Average Sellers do not have a physical storefront because the
thought never occurred to them to get one or they think it’s too
expensive, etc.
4. Average Sellers create artificial boundaries for themselves that don’t
really exist
a. They tell themselves that setting up a company is too hard
b. They don’t get a resale tax certificate because they think it’s too
hard
c. They never call Vendors to buy products directly because they
think it’s too hard or they don’t know what to say, etc.
i. Instead they settle for continuing to buy Vendor goods
without permission through Arbitrage or even worse
through liquidations, etc.
Now let’s outline the mind of a Power Seller:
1. Power sellers have ​no fear​ because they know the law is designed to
protect their interests and they know how to use the law to protect
themselves against any and all frivolous claims.
a. They have permission to sell all the goods they acquire by
virtue of the fact that they hold an Invoice from every Vendor.
b. The Invoice is “permission” and based on the First Sale
Doctrine (you’ll learn in a bit) they sell all Vendor goods with
confidence in any marketplace.
2. Power Sellers don’t spend much time sourcing because they buy and
sell the same products over and over again.
a. This allows them to scale their operation for unlimited growth
3. Power Sellers set up “Storefronts”. These are commercial receiving
addresses set up to receive goods from their Vendors.
a. Some have a real store with foot traffic but most ​DO NOT
i. They simply set up a commercial receiving address at
UPS or Pak-Mail or rent the service of a warehouse to
“receive” for them, rent a shelf in a consignment shop or
any other physical store, etc.
b. The storefront allows them to get past the “brick and mortar”
requirement of many vendors.
i. Most vendors require a commercial receiving address and
are not explicit in requiring “foot traffic” (aka physical, walk
in the door customers).
c. Power Sellers know that it’s nobody’s business (not Vendor’s or
Amazon’s) how they run the physical activity of their business
or conduct their internal business operations.
4. Power Sellers do not construct artificial boundaries. They set up their
company or DBA, get their resale tax certificate and make simple
communications to set up accounts with Vendors.
a. Power Sellers do not sell any Vendor goods without permission.
i. They know arbitrage is a dangerous game so they don’t
play it.
b. Power Sellers know that permission to sell a Vendor’s goods is
explicit once an Invoice is received from the Vendor.
i. Power Sellers understand that no Vendor can restrict
them from selling their legally acquired goods in any
marketplace.
1. Amazon intimately understands this as well even
though it may not seem so. You’ll learn why in this
course.
2. Vendors also know this.
The Laws
Before we get into the specifics we need to cover the laws that are
designed to protect you and your business so you can go forward with
confidence​.
It took many months of digging and actual testing to come into a full
understanding of these laws and how they play in “real life” when applied to
actual situations.
Please note that I’m not an attorney and I’m not pretending to be one. All
this knowledge was personally acquired through actual practice. I will share
my real-world experience and what I have learned.
There are 2 laws that protect us as sellers:
1. The Digital Millennium Copyright Act​ (DMCA)
2. The First Sale Doctrine​ (17 U.S.C. § 109)
Let’s discuss each one in more detail…
The Digital Millennium Copyright Act (DMCA)
This is the law that gets many arbitrage sellers suspended or sternly
warned. This is how it works:
Anyone can file a claim against you using ​this form​. Once that claim
is filed Amazon, by law, must immediately, without investigation,
rightly or wrongly remove your items from appearing for sale from the
detail pages referenced by the claim.
The same law also protects you from these claims. Once you submit
“proof” that you did not commit the violation then Amazon, by law,
must immediately reinstate your listings.
Amazon is not playing any favorites, they are simply following the
letter of the law. The only reason they have the ​Report Infringement
Form​ is so anyone can file a claim quickly and easily. Amazon does
not want to get penalized for violating the DMCA. Once any claim is
submitted then Amazon’s robots remove the violating content and
you are emailed a Policy Warning Letter.
Now let’s cover the different types of infringement claims:
Copyright Infringement​ - This is when the claimant files a case that
you are infringing on their copyright (name, images, textual copy,
etc.). If you create an Amazon listing for a product that you do not
own then you can get in serious trouble with this one.
Trademark Infringement​ - This is when you are using the brand
name of a Vendor without their permission. If you don’t have proof (a
letter from the Vendor) then you are in serious trouble.
Both the Copyright and Trademark infringement claims (known
as Intellectual Property Rights violations) are easy to combat if
you did not create the Amazon listing (detail page).
If you ever create an Amazon detail page for products that you
don’t own the rights to then it’s just a matter of time before you
get shut down (it’s illegal). You will have no proof or recourse.
You’re done.
As a result of this, no matter what you’ve been taught or told,
you should never create an Amazon detail page for any brand
or product that you do not own or have not received an explicit
letter in writing approving such action.
There’s some popular courses out there that teach you how to
create “bundles” where you combine two or more products to
create a new Amazon listing. Once you list images and text for
that bundle you have just broken copyright and/or trademark
law. Don’t do it; never and I mean never create a listing on
Amazon unless you own the rights or have received permission
from the rights owner in writing.
We will cover the specifics of how to combat Copyright and
Trademark infringement claims in the “​How to Combat All
Claims​” section.
Counterfeit Claims​ - The claimant can use various different methods
to file a counterfeit claim. First the claimant may purchase one of your
units and then they will file a counterfeit claim. If you do not have an
invoice from the rights owner, manufacturer or approved distributor
then you’re in trouble. ​Sales receipts from online or retail stores will
not work against counterfeit claims (it’s not sufficient proof)​.
You can make a store receipt work for intellectual property
rights violations when you press the issue (covered later) but, in
general, arbitrage as a business model is a practice that will
eventually lead to your suspension. All it takes is one
counterfeit claim by anyone combined with your failure to
produce a genuine invoice and your selling privileges will come
to an abrupt end.
The First Sale Doctrine (17 U.S.C. § 109)
If the DMCA law wasn’t enough to bolster your confidence (if you’re doing
things right), ​The First Sale Doctrine​ (FSD) is another law that will boost
your confidence even more.
The FSD creates a legal exception to the rights owner’s distribution rights.
Basically what it enforces is the fact that once you purchase goods you
may sell those goods in any way you see fit. Provided the goods were
obtained legally and sold legally.
In other words, when you buy goods from a Vendor (or anywhere else) you
have a 100% legal right to now sell those goods to anyone anywhere at
any time PERIOD!
Most Vendors (rights owners) and Amazon know this law even though it
may seem that Amazon plays favorites by restricting certain brands.
Amazon restricts brands due to high rates of counterfeit claims. They
restrict brands to add an additional layer of security requiring that you
submit an invoice or letter of permission from the rights owner before you
can sell those restricted goods.
Here’s an example from the LEGO brand:
Once you click the “Request approval” button then you may be taken to a
page that looks like this:
Notice that Amazon is asking for an invoice OR a letter of authorization.
They are not asking for both as commonly misperceived​. Once you
submit the required document then Amazon approves you to sell under the
restricted brand.
Amazon does not care about enforcing the distribution of goods from brand
owners. In some cases they will outright restrict a brand but, again, it’s not
because they are playing favorites; it’s usually because of a high rate of
counterfeits; they are protecting their own interest (against counterfeit
lawsuits) and could care less about the interest of the brand owner.
Frivolous Claims
I want to be abundantly clear that when you hold an invoice from a Vendor
(rights owner) for the goods that you sell on Amazon you are basically
bullet-proof as far as Amazon is concerned. Vendors also understand this
fact but they will still try to prey on your ignorance of the law designed to
protect you.
Frivolous Claim #1 - Intellectual Property Rights Infringement claims - ​ALL
OF THEM​ - are 100% false if you ​did not​ create the Amazon detail page.
So by virtue of the fact that you didn’t create the listing (upload images,
create text, bullet points, use the brand name, etc.) you could not have
infringed on ANY intellectual property right. It simply isn’t possible to
infringe when you did not create the listing. However you are 100% within
your legal right according to the First Sale Doctrine to sell your units of a
product under any “​existing​” listing for that product.
Furthermore if a Vendor (rights owner) files an IP claim against you
and their sole intent for doing so is to use Amazon to enforce their
distribution chain then they are breaking the law. The problem is that
it’s very hard to prove this so suing a Vendor for a fake IP claim
would be very costly and the cost would far outweigh any benefit
derived.
Amazon tries to stop these frivolous claims by posting the following on their
Report Infringement Form​:
We Do Not Enforce
Detail Page Ownership and Image Restrictions:​ When a detail page is created, it
becomes a permanent catalog page on Amazon.com that will remain even if the
creator's inventory sells out. Additionally, when you add your copyrighted image to a
detail page, you grant Amazon and its affiliates a non-exclusive, worldwide, royalty-free,
perpetual, irrevocable right to exercise all rights of publicity over the material.
Other sellers can list their items for sale against pages that you have created or added
your copyrighted images to. However, we do require sellers to list only against detail
pages that exactly match their items. If you believe sellers are listing against detail
pages that do not exactly match their items, we ask that you report the violation directly
by using the contact us form.
If your copyrighted image has been added to our catalog without your consent, please
complete the form below.
Exclusive or Selective Distribution:​ Amazon respects a manufacturer's right to enter
into exclusive distribution agreements for its products. However, violations of such
agreements do not constitute intellectual property rights infringement. As the
enforcement of these agreements is a matter between the manufacturer and the
retailers, it would not be appropriate for Amazon to assist in enforcement activities.
Amazon explicitly states that their form should ​not​ be used to report an IP
claim if the one submitting the form already knows that the violator did not
create the listing. ​As sellers we never need to worry about IP claims if
we did not create the listing (yes, I said it again).
Amazon also states that they do not enforce “distribution” of goods and that
reporting a seller for the purpose of getting that seller in trouble by alleging
an IP violation is an improper use. In other words, Amazon will not enforce
who sells what on their platform. This is not Amazon’s job and they have no
interest in ever doing this. ​As sellers (holding an invoice) we never need
to worry that we’ll get in trouble for selling a brand (restricted or not).
The worst trouble you may get into for selling a brand is directly with
the brand owner. If they find out who you are (behind your seller
name) they may revoke your privilege to buy from them.
Amazon will never reveal your name or legal business name to
any 3rd party unless a court orders them to or unless you are
unresponsive to a claim filed by a rights owner.
Knowing this, some rights owners may contact you through the Seller
Central email system and ask you to cease and desist or threaten
you by saying they will file a claim or they may ask what your name is
and the name if your company, etc.
All of this would be done in an effort to get you to disclose who
you are and/or scare you into submission. It’s really a desperate
attempt to control the distribution of their goods by attempting to
use Amazon to enforce it. Now that you know your rights, you
may simply ignore these demands if you choose.
SUMMARY
● Never create a listing for a product you don’t own the rights to.
○ You can list your item under an “existing” listing​ but never
create a NEW one where you upload images, create text, etc.
● It’s not legally possible to infringe on any rights (copyright, trademark,
intellectual property, etc.) if you did not create the amazon detail
page.
● Once you hold an invoice from a vendor you may now sell those
goods in any way you desire… Amazon included.
● Once you hold an invoice you cannot get shut down on counterfeit
claims.
● Amazon does not play favorites, they only follow the law.
● Amazon only restricts brands due to higher rates of counterfeit
claims.
● You can sell restricted brands, just submit an invoice and you’ll be
unlocked.
○ Brands are not restricted due to some “special” arrangement
between Vendors and Amazon.
● Amazon aggressively protects your true identity (your name and legal
business name) behind your Amazon seller name.
○ They will never reveal who you are to a claimant or any 3rd
party unless you are unresponsive to claims.
The Mindset
Now that we’ve covered the Mind of a Power Seller and the Laws that
protect us as sellers we can go forward with confidence into a bold new
frontier!
We no longer need to live in fear of the ultimate death stroke of our
businesses by an unruly Amazon god. In fact the opposite is true, Amazon
is not unruly, they play no favorites, they just follow the law as required, no
more, no less.
We also understand the plight of the Vendor (brand owner). Once they
decide to sell their goods to 3rd parties (like you), they can not enforce how
those goods are sold other than revoking the right of a seller to buy from
them. This is their only recourse. They cannot force Amazon’s hand into
enforcing the distribution of their goods by “getting sellers suspended”.
With all this being known let’s switch gears and get into the Mindset that
you need to hold firm so you can build a massive Amazon selling enterprise
(or small one whichever you choose).
FACT:​ Your internal business operations are not the business of anyone or
any entity unless court ordered (these are your business secrets, your
intellectual property).
You will be setting up a commercial receiving address for the purpose of
receiving vendor goods (more on this process later). This commercial
receiving address will be your storefront as far as anyone else is
concerned. How you conduct the sale of your merchandise on the
back-end is nobody’s business (as stated).
SIDE NOTE:​ Setting up a commercial receiving address is actually a
very simple process so don’t get discouraged here. Later in this
course you will even learn how you can set up 3rd party services to
receive goods, process them and ship them to Amazon fulfilment
centers FOR you. This way you never have to handle merchandise.
When you contact vendors to set up accounts, you will wear your brick and
mortar hat. You have a brick and mortar receiving address, you will receive
goods and then you will place those goods for sale and you will then sell
those goods to customers. This is all that any 3rd party needs to know, the
rest is none of their business (as stated).
Some vendors will explicitly declare that they do not allow the sale of their
goods on 3rd party sites like Amazon. In my experience I have found that
most vendors only say this to keep “Amazon only” sellers away and most of
them will allow you to sell your “overstock” on 3rd party sites like Amazon,
they just don’t advertise this fact.
If you are ever contacted by a vendor asking who you are (because they
won’t know the true identity behind the Amazon seller name) you can tell
them if you wish. The general policy is if they don’t ask if you’re an Amazon
seller, don’t tell them, it’s really none of their business (as stated).
If worse comes to worse and they do find out who you are and they really
don’t like you selling your overstock on Amazon (which is rare) then they
may not allow you to buy their goods any longer but that’s the extent of
what they can do. They can’t shut your whole business down by getting you
suspended and they can’t sue you and win because of the First Sale
Doctrine (as discussed in the Laws section above).
So the general internal business operational mindset is that you are a brick
and mortar company who sells overstock on Amazon. Nobody is to know
that 100% of the stock you receive is overstock, it would be none of their
business anyways.
I know all of this may sound a bit subversive but I can assure you that it’s
far less subversive than selling arbitrage where you are circumventing the
distribution process of rights owners completely and you’re just one
unprovable counterfeit claim (with no invoice in hand) away from
suspension.
If you have an internal ethical issue with this strategy then you can easily
rent space in an established brick and mortar store and stock your items
there for foot-traffic to peruse and purchase and then sell the rest of your
stock (your overstock) on Amazon. We’ll cover this strategy as well.
Mindset Summary
When you approach any new vendor for the purpose of setting up a new
account, you are a brick and mortar company. If asked if you sell on 3rd
party sites (like Amazon) you can say that you may use those sites to
liquidate overstock but you will always abide by any MAP policies they
have (discussed below).
What is a MAP Policy?​ - MAP stands for Minimum Advertised Price:
this is the lowest price you may advertise (or sell for) on any public
website (like Amazon). This is a binding agreement and you must
abide by it. MAP policies are actually a good thing because you don’t
have to worry about another seller dropping prices down.
Setting Up Your Company to
Receive Vendor Goods
You need to establish a commercial receiving address. This is one of the
most critical elements related to being able to sell goods from most any
vendor.
Almost all vendors will require a commercial receiving address. During the
due diligence process, many vendors will actually look at your address on
Google Earth (or similar systems) to determine if your address is truly a
commercial address. When a vendor looks at your address and sees a
private residence or apartment building then your application will be denied
in most cases.
The most successful sellers on Amazon have what is called a pseudo
storefront. This storefront allows these Amazon sellers to buy wholesale,
but more specifically, it allows them to buy wholesale from vendors who
only sell to sellers that have a physical (nonresidential) store.
Your commercial address will be your “store” (your brick and mortar) in the
eyes of your vendors. It should also be seen as your store in your eyes as
you will store product there for eventual distribution to Amazon fulfilment
centers and your customers.
Get Your Store Set Up
There are many ways to set up a commercial receiving address. Following
are a few proven ways to do this. This should be your first order of
business. Once your receiving logistics are set up then a whole new world
of opportunity for acquiring goods to sell opens up to you.
Following are some different ways to get set up:
FBA Prep Services (Hands off approach - No handling merchandise)
There are many different FBA prep service and all of them will
receive your goods for you. Their pricing structures vary and the level
of service they provide varies.
Basically you’ll use the FBA prep service address as your store
address when signing up with new vendors. The FBA prep facility will
then receive your goods, sticker them, pack them and ship them to
Amazon Fulfilment Centers on your behalf.
Most FBA prep services charge a small fee per item they receive.
This may be a convenient option for you.
Use the following Google search to locate and vet different services:
Google Search: ​FBA Prep Services
Here’s a partial list of services: ​Click Here
Here’s Jim Cockrum’s list: ​Click Here
Commercial Receiving Services
There are many commercial receiving services across the United
States (and around the world). You would use the address of the
receiving facility as your store address.
These services will receive packages from any carrier. Some may
also receive pallets of goods for you as well. You will want to check
with each one to see if they offer pallet receiving.
These services will receive your packages from vendors and then
hold/store them until you pick them up.
Following are some popular commercial receiving services:
● The UPS Store​ (will accept packages from ANY carrier)
● Pak-Mail Warehousing Services
Following are some Google searches you can conduct to find
services near you:
● commercial receiving warehouse
● commercial receiving service
Warehouse Receiving & Storage Services
Visit any industrial area near you and you may find large warehouses
who also offer receiving and storage services. Many warehouses run
a service like this to help them offset some of their costs or create an
additional source of income. Also note that most of these warehouses
will not advertise their service so you will have to walk in and ask.
It’s rare that any warehouse space is at capacity so you can
always walk in, speak to an owner/manager and negotiate to
have them receive and store merchandise for you.
Rent space in an existing store
You can use your imagination on this one but you’ll want to avoid
“chain stores”. Obviously walking into Target and asking the manager
if you can rent shelf space won’t work. On the other hand if you walk
into a consignment store, many of them will rent space or shelf space
to you with no problem.
You can negotiate with the owner and pay them a small monthly fee
to rent some space in the store where you can feature some of your
products. You can also negotiate a separate fee for them to “receive”
your goods and store them in the back until you get there to manage
it.
The best scenario is to think of a friend or family member who
may already have a retail or commercial location and then
negotiate a deal with them.
Rent a warehouse space
You can visit any industrial area near you and find warehouse space
for rent. Many warehouses will have receiving services so they will
receive your goods and transport them to your “area” in the
warehouse.
Open a retail location
Once you are making sufficient income to support it, you might
consider setting up your own retail location. You can sell
merchandise to foot traffic while running your eCommerce at the
same time.
You could specialize in selling fast moving products and you can use
Amazon’s Best Seller Lists​ to find vendors, contact them and stock
some of the world’s most popular, fly-off-the-shelf products.
The money you save by not paying Amazon’s commissions can
easily pay the rent at the right location.
Summary
Once your commercial receiving address is all set there’s only one more
consideration before you begin contacting vendors. We’ll cover that in the
next section on “Setting up your company”.
Setting Up Your Company
No vendor can legally sell goods to you unless you have a Resale Tax
Certificate from the state in which you or your company resides. The first
order of business is the obtain a Resale Tax Certificate which is really easy
to do. The process varies by state so here’s a great resource from TaxJar
that breaks down the process by state: ​CLICk HERE
Once you have your Resale Tax Certificate you can now legally buy goods
from any vendor across any brand anywhere in the United States.
In order to add legitimacy to your operation you will need to set up a
company. No vendor will take you seriously if your store name is John
Smith (for example). Setting up a company is as easy, here are a few ways
to do it.
Set up a Sole Proprietorship
This is the easiest way to go, you don’t have to do anything except
choose a name that you will “do business as” this is know as a DBA.
Just choose the name of your store that you will present to vendors
and that’s all you need to do.
● No state filing required to form a sole proprietorship.
● Easy to form and operate as stated.
● You would report business profit and loss on your personal tax
return.
Set up a Limited Liability Company (LLC)
For a small fee (usually under $250) you can set up a LLC which will
give you an independent legal structure so if your company is ever
sued then you would not be personally liable.
● Independent legal structures separate from their owners.
● Help separate your personal assets from your business debts.
● Taxed similarly to a sole proprietorship (if one owner) or a
partnership (if multiple owners).
● No limit to the number of owners.
● Not required to hold annual meetings or record minutes.
There are other types of legal structures that you can form to protect your
assets or separate business income from personal income. As an example,
I have a LLC that is formed as an ​S Corporation​. This allows me to keep
my business and personal income separate. Profit from my business is
usually taxed less than profit that I claim as personal income so that’s why I
chose that structure. Incorporate.com has a handy list with details of each
one ​here​.
Don’t Get Stuck!
Whatever you do don’t get stuck in this process so much that it keeps you
from proceeding forward. You can always start with a Sole Proprietorship
and add a new legal structure later.
Using DBAs
As stated, a DBA (Doing Business As) would be your “store name” for the
purpose of this instruction. The DBA is what you will call yourself when you
apply for a Resale Tax Certificate as well as what you will call your store
when you contact vendors to set up accounts.
One example of a DBA is your Amazon seller name. On Amazon you are
your name or your business entity name, “Doing Business As”, your
Amazon store name.
DBA’s don’t require any kind of legal documentation in and of themselves.
You can actually use any DBA any time you wish. It may be easier to think
of a DBA as an Alias. You can also walk into your bank and set up a DBA
as a separate bank account (under your main account) if you wish.
Another example… Yum! Brands, Inc. is the name of a legal entity that has
several DBAs - Taco Bell, Kentucky Fried Chicken, Pizza Hut and Wing
Street.
You could actually present different DBAs to different vendors depending
on what you’re buying. If you’re buying electronics (for example) then you
might present yourself as HiFi Electronics. If you’re buying toys then you
might present yourself as Trident Specialty Toy Shoppe.
To keep things simple you may want to use a universal name that you can
use for every vendor such as: Staks Specialty Shoppe, Millers Specialty
Store, etc. The name doesn’t pin a specific kind of merchandise and would
allow you to sell anything.
VERY IMPORTANT:​ If you used your personal name or another name to
set up your Amazon account then you may need to change your “Legal
Entity” name on Amazon. The goal is to have all invoices from vendors
reflect the same name on Amazon. Otherwise Amazon won’t accept your
invoices as proof should a claim arise.
In other words the entity name that a vendor “Invoices” should match your
Amazon Legal Entity name. You can use any name you like when
presenting yourself to a vendor (by phone/email) but when completing the
vendor paperwork always make sure you use your Legal Entity name which
matches your Amazon Legal Entity.
To see or change your your Legal Entity on Amazon go to: Settings >>
Account Info >> Legal Entity (under business information). Here’s a direct
link in Seller Central: ​Click Here
Summary
Setting up your company is the last step you need to accomplish before
contacting vendors to set up accounts. Once this is done you can begin
buying merchandise from any vendor. All you really need is you Resale Tax
Certificate, your company name and your commercial receiving address
and you’re ready to roll.
How to Contact Vendors
If you’ve never contacted a vendor (brand owner, manufacturer, distributor,
etc.) directly then you may feel a bit intimidated. In order to ease your mind
it’s important to know a few facts:
● Vendors want to sell you their products it’s how they grow their
business.
● Vendors are eager to talk to you, they want more sales.
● The people you will talk to have communicated with hundreds or
thousands of small business owners “just like you”.
● Vendors don’t favor larger sellers over smaller ones, it all adds up to
them.
● They are just as eager to set an account up for you as you are to
have one with them.
Here’s the typical experience you’ll have and this is based on contacting
hundreds of different vendors both large and small.
1. You’ll usually establish first contact through a simple email (script is
below) asking how you can apply to be a retailer and carry their
products in your store.
2. You will receive a response with instructions to apply and/or someone
will ask for more details about your store.
a. This is the “due diligence” part where the vendor is making sure
you’re not just a 3rd party website seller (like Amazon or Ebay,
etc.)
i. Remember it’s none of their business ​how​ you sell
products (your internal business operational secrets) so
always come from the angle that you have a “brick and
3.
4.
5.
6.
mortar store” in the [insert city & state area] and believe
that their brands would be appealing to your customers.
Now you apply to be a retailer.
You’ll usually be accepted once you’ve completed the application and
forwarded your Resale Tax Certificate, etc.
Next you’re assigned an account representative who will then email
you their catalog and price sheet upon your request.
You place your first order with the vendor.
All of the above can happen by phone or email, it’s really up to you. Some
of my biggest vendor accounts have been set up entirely by email. Some
larger vendors can take up to 2 weeks to approve your account.
Contact Scripts
Always look for an online retailer application first. If you can’t find one then
look for a “contact us” form. You can also look for their phone number.
When calling by phone ask to speak to someone in “sales”.
First Contact (email or phone)
Hello,
My name is [insert name] with [insert DBA] we operate a brick and
mortar store in the [insert city & state] area. I believe our customers
will enjoy your products. I’m inquiring about getting set up as a
retailer to carry your brands at our location.
How may I apply to be a retailer?
When you contact a vendor by ​phone​ remember your “mindset” and you’ll
do fine. Remember that the vendor wants your business, they just need to
make sure you’re legitimate first. They will ask you questions, all you need
to do is answer them. Don’t be intimidated, remember your “mindset”, they
are just following a procedure just like you are.
Some vendors will ask if you sell on Amazon and this is what I usually say.
We have an account on Amazon that we use from time to time to sell
overstock but we always abide by MAP policies when we do.
That’s all you need to say, let the representative lead you to the next
question after that. The general rule is, don’t volunteer any information
about your business operations unless you’re specifically asked.
Summary
I bet you were thinking that setting up accounts with vendors would be way
more complicated that this. I can assure you that setting up accounts with
vendors is far easier than you can imagine. You might even kick yourself
for not having bought product this way before. If you’ve ever done
arbitrage, you’ll immediately sense how much easier wholesale is than
arbitrage.
How to Combat All Claims
This section of the course is designed to give you exact form letters to use
when appealing all claims that Amazon may present to you. It’s inevitable
that you’ll receive claims so being prepared to handle them is what will give
you peace of mind.
Following are some real-world example of letters I have received from
Amazon:
I received this email from Amazon Seller Performance:
The letter is stating that Amazon received a “report of infringement” from a
rights owner and then listed the ASINs and content. Then they provided me
the right owner’s contact information (blacked out).
Further down the email Amazon says “If you believe that the reported
content does not infringe the rights owner’s intellectual property rights, you
may email ​notice-dispute@amazon.com​ with supporting information.”
Here is my exact response
I believe there has been an error.
According to Amazon's policy we are not the listing owner therefore we cannot
have infringed on any intellectual property rights.
The products represented by ASINs B01D13YFUS, B01LCNLUT8, B01LXOPB13
and B000U7Z0IU are listings that were created either by Amazon or another
seller (not me) and according to Amazon's policy
(​https://www.amazon.com/gp/help/customer/display.html/ref=hp_left_sib?ie=
UTF8&nodeId=200202130​), they own the listing which means there is no way to
infringe upon the rights owner's intellectual property.
In addition I have attached the invoice showing where we have purchased the
units from the manufacturer of the products represented by ASINs B01D13YFUS,
B01LCNLUT8, B01LXOPB13 and B000U7Z0IU.
Please reinstate the listings.
Complaint ID: 1179572091,1179572061,1179572081,1179572071
Thank you,
Charles Heflin
To which Amazon replied:
Here’s another example
This one is from a “counterfeit” claim...
To which I replied:
This is in reference to Complaint ID: ​1144428831
I have attached an invoice from the manufacturer. You will notice the
manufacturer part number on the Amazon detail page matches the part number
on the attached invoice.
ASIN: B01FGT1QA2
Title: 1 Liter (34 oz.) BPA FREE Plastic Carafe Pitcher Decanter Jug w/ Light
Blue Lid
Please reinstate the listing.
Thank you,
Charles Heflin
To which Amazon replied:
To which I replied, basically the exact same reply as before:
This is in reference to Complaint ID: ​1144428831
I have attached an invoice from the manufacturer which proves that the ASIN in
question cannot be counterfeit. You will notice the manufacturer part number on
the Amazon detail page matches the part number on the attached invoice.
ASIN: B01FGT1QA2
Title: 1 Liter (34 oz.) BPA FREE Plastic Carafe Pitcher Decanter Jug w/ Light
Blue Lid
Please reinstate the listing.
Thank you,
Charles Heflin
To which Amazon replied:
Interesting Side Note:​ This is what clued me in that Amazon’s
infringement department is mostly robotic and after going through at least
30 different cases I gleaned that the appeals department for infringement
claims seems to be farmed out to a sub-par system which one may classify
as idiotic. I basically provided the same proof as before except this time I
won the appeal.
Here’s another example:
To which I replied (a different script this time):
Complaint ID: 1141256411
Attached is our invoice from the distributor for:
ASIN: B001ET7888, Giovanni Golden Wheat Shampoo for Normal to Oily Hair,
8.5 fl oz Containers (Pack of 3)
Please reinstate the listing.
Thank you,
Charles Heflin
To which Amazon replied:
To which I replied:
I believe there has been an error.
According to Amazon's policy we are not the listing owner therefore we cannot
have infringed on any intellectual property rights.
The products represented by ASIN B001ET7888 is a listings that was created
either by Amazon or another seller (not me) and according to Amazon's policy
(​https://www.amazon.com/gp/help/customer/display.html/ref=hp_left_sib?ie=
UTF8&nodeId=200202130​), they own the listing which means there is no way to
infringe upon the rights owner's intellectual property.
In addition I have attached the invoice showing where we have purchased the
units from the manufacturer of the products represented by ASINs B001ET7888.
Please reinstate the listings.
Complaint ID: ​1141256411
Thank you,
Charles Heflin
To which Amazon replied:
As you can see some replies work and others don’t, sometimes you can
send almost the exact same reply again and you’ll win the appeal.
When any of the above replies don’t work and you’ve been back and forth
several times then you can pull out the nuclear option. This is when you
send a certified letter directly to Amazon’s legal department. This way a
real Amazon employee (not some contractor) will read your appeal.
Remember, when you hold an invoice it is Amazon’s legal obligation
to reinstate your listings. A quick review of the Laws Section of this
course will refresh your memory. When you’re appealing these
frivolous claims, all you’re doing is showing Amazon that you couldn't
have possibly committed such an act and that according to DMCA
law, they MUST reinstate the content.
So here’s the nuclear option that will finally get your content for the
removed ASINs reinstated and will remove the mark against your seller
performance file:
You will send the following letter to:
Copyright Agent
Amazon.com Legal Department
P.O. Box 81226
Seattle, WA 98108-1226
Here’s the form letter (fill in the pertinent areas with your information)
Dear Copyright Agent,
Please find attached to this letter a list of material removed by you
pursuant to 17U.S.C. Section 512 ​[Attach a printed copy of the email
from Amazon containing the case ID]​. I have a good faith belief that
this material was removed or disabled in error as a result of mistake or
misidentification of the material. I declare that this is true and accurate.
The claims in this case are invalid. The product represented by ASIN
[INSERT ASIN]​ is a listing that was created by Amazon or another
seller and according to Amazon's policy
(https://www.amazon.com/gp/help/customer/display.html/ref=hp_left_sib
?ie=UTF8&nodeId=200202130), they own the listing which means there
is no way to infringe upon any intellectual property.
For the purposes of this matter, I consent to the jurisdiction of the
Federal District Court for the judicial district in which I reside. I also
consent to service of process by the person providing notification under
Section 512(c)(1)(C) or that person’s agent. However, by this letter, I do
not waive any other rights, including the ability to pursue an action for
the removal or disabling of access to this material, if wrongful.
Having complied with the requirements of Section 512(g)(3), I remind
you that you must now replace the blocked or removed material and
cease disabling access to it within fourteen business days of your
receipt of this notice. Please notify me when this has been done.
I appreciate your prompt attention to this matter. If you have any
questions about this notice, please do not hesitate to contact me.
Attached you will find our authentic invoice showing that we received
these products from a reputable distributor​ [attach a copy of your
invoice]​.
Sincerely,
STORENAME
YOUR NAME
YOUR PHONE NUMBER
I have received over 40 infringement claims over the years and have
NEVER had to use this nuclear option. Using the appeal emails as shown
above, I have won every single case.
The following text seems to work against ALL infringement claims so
this should probably be your response of choice:
I believe there has been an error.
According to Amazon's policy we are not the listing owner therefore we cannot
have infringed on any intellectual property rights.
The products represented by ASIN ​[INSERT ASIN]​ is a listings that was created
either by Amazon or another seller (not me) and according to Amazon's policy
(​https://www.amazon.com/gp/help/customer/display.html/ref=hp_left_sib?ie=UTF
8&nodeId=200202130​), they own the listing which means there is no way to
infringe upon the rights owner's intellectual property.
In addition I have attached the invoice showing where we have purchased the
units from the manufacturer of the products represented by ASINs ​[INSERT
ASIN]​.
Please reinstate the listings.
Complaint ID: ​[INSERT COMPLAINT ID]
Thank you,
[INSERT YOUR NAME]
Note that you should never ignore any infringement claim emails from
Amazon, they all go as a mark against your account until they are
appealed. When you receive too many non-appealed claims then your
account will be suspended.
SUMMARY
This section is not meant to scare you but to show you how to protect
yourself in the event that you do receive an infringement or counterfeit
claim. In reality it is rare to get these claims when dealing directly with
brand owners or their distributors. This section coupled with knowledge of
the laws that are designed to protect you should set your mind at ease as
you plow forward into a new frontier.
CONCLUSION
I hope at the end of all this intel you have
come out with a new understanding and firm
grasp on the mindset you need to have in
regard to your business.
This is the strategy that I personally use every
day. The preceding pages contain all the
information you need to buy and then legally
sell any product from any brand aon Amazon (even if they are
restricted).
If you have any questions or need help appealing a claim then don’t
hesitate to contact me ​CharlesHeflin@gmail.com​. I have a genuine
passion for helping sellers like you get past all the fear and doubt that
is so prevalent in today’s marketplace. I love to talk about this stuff so
don’t hesitate to contact me if you have any questions.
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