#396 - Is Reselling On Amazon Dead?

This episode explores the evolving landscape of reselling on Amazon, specifically focusing on the challenges faced by smaller sellers due to Amazon's increasingly stringent requirements for proof of authorized distribution. Against the backdrop of Amazon's shift from needing resellers to prioritizing vendor relationships and private label brands, the discussion centers on the difficulties faced by those relying on retail or online arbitrage. More significantly, the guest, Chris McCabe, an expert in Amazon seller suspensions, emphasizes the crucial role of obtaining Letters of Authorization (LOAs) from brands or authorized distributors to avoid account issues. For instance, he highlights how simply providing retail receipts is insufficient and that suppliers must be willing to provide detailed supply chain information. The conversation also debunks the misconception that the "first sale doctrine" offers legal protection against Amazon's policies in this context. Ultimately, the episode advises resellers to proactively pivot their business models towards sourcing from authorized distributors to ensure long-term viability on the Amazon platform, emphasizing that the era of easy, passive income on Amazon is over.