They jump industry to industry and buy in large bulk, but not so much as to cause suspicion. They have strong legal representation ready to fight for the First Sale Doctrine and reverse Amazon account suspensions, which is recognizable in the large number of feedback responses their accounts receive. They tend to have their own warehouse, employees, and liaisons to acquire new brands to buy from. They may either operate openly or in the shadows. Wholesale Distributors are a significantly larger threat in terms sales volume than the previous five. Don't hesitate to contact us if you feel overwhelmed. We know what a nightmare these types of sellers can be. Waiting until they run out of inventory is a good option, but often they have purchased so much inventory (as they anticipated the day they would get caught) that this may not be a viable option.Īt this point, depending on how skilled this seller is, more advanced methods are required to break their resolve. At this point, they are proficient at creating new accounts and dancing around loopholes. You must begin test buying with these specific types of sellers and immediately cut off their supply chain. Keep in mind the Merchant ID stays the same, so you can easily track their movement, if they are the same seller. They may reply and say they took the product down but put it back up on the weekends, evenings, or holidays and change their seller names.

These sellers will 100% ignore your electronic cease & desist letters. They will then take the product, label and prep it, then ship it direct to FBA. These shipping addresses should be considered a red flag since it makes little sense to receive the product elsewhere and then move it to the storefront.

They will have their orders shipped to their residence or receive them at shipping facilities since they no longer have a physical storefront. If the sellers are smart they will only sign a month to month or 3-6-month lease with the retail location while continuing to buy goods from your brand. Do your due diligence to avoid problems down the line. For example, if you have a luxury beauty brand, and a client wants to open a kiosk at a low-income mall, that would be a red flag. The best prevention is to research where they would like to open the retail location and if it makes sense. They view such efforts as a small start-up fee for what will usually become a profitable endeavor. They will often rent retail space in a cheap plaza, a kiosk/Retail Merchandizing Unit at a mall or book a booth at a trade show or event for the sole purpose of acquiring a contract with a major brand in order to resell their goods online. Smash and Grab Sellers represent your typical small-time con artists working the gray area of the law. If they see that another MAP violator has had the buy box for a period of time, they may get frustrated and drop their own price below the MAP price simply to compete. Another scenario where they may violate MAP is due to price cascading. In that case, they may wait until the evening, weekends, or holidays to violate MAP when they feel the brand is not checking for violators. They may also have too much excess inventory and need a positive return on their investment. One seller might get greedy and want 100% of the pie. One example is if they are sharing the buy box with multiple other authorized sellers who are all following MAP. Sometimes an authorized seller may violate on purpose if they feel their sales are low. If done by accident, it is usually due to a clerical error since many of these sellers have thousands of listings or due to an automatic pricing error if they have auto-price match set up and another seller violated your MAP. However, either on purpose or by accident, MAP pricing enforcement is often violated even by those you have authorized. As the title implies, these sellers are authorized to sell the listing online as long as they are in compliance with MAP pricing policy.

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