#396 - Is Reselling On Amazon Dead?

This episode explores the evolving landscape of reselling on Amazon, specifically focusing on the challenges faced by smaller businesses due to Amazon's increasingly stringent requirements for supplier documentation. Against the backdrop of Amazon's efforts to control its marketplace, the discussion centers on the diminishing viability of retail and online arbitrage due to Amazon's demand for letters of authorization (LOAs) from authorized distributors or brands. More significantly, the guest expert debunks the common misconception that the "first sale doctrine" offers legal protection against Amazon's policies, highlighting the futility of legal challenges within Amazon's ecosystem. For instance, the guest shares numerous examples of sellers facing account suspensions due to insufficient documentation, emphasizing the need for proactive pivoting towards sourcing from authorized distributors. As the discussion pivoted to practical advice, the guest strongly recommends that resellers prioritize obtaining LOAs and verifiable supply chain documentation to mitigate the risk of account suspension. This means that smaller resellers need to adapt their business models to comply with Amazon's new requirements or risk being squeezed out of the marketplace, reflecting emerging industry patterns of consolidation towards larger, more established players.