Here’s the scenario: Your brand has started selling on Amazon, and sales are strong. You’ve invested time and resources to build your presence, and you’re finally gaining traction. However, after some time, you begin to notice a decline in sales, and you are no longer consistently winning the buy-box. A closer look reveals a potential problem—there are several third-party unauthorized resellers appearing on your product listings. You don’t know who these sellers are or where they are getting their supply of products, but it’s clear their presence is cutting into your revenue and brand control.
At this point, you may be tempted to remove these listings by filing an infringement report with Amazon. But before you hit submit, think twice—this approach could backfire.
Why Filing an Infringement Report May Backfire
Reason One: Amazon’s Marketplace Policies Allow Third-Party Sellers
First, it’s important to understand Amazon’s policy towards third-party sellers. Amazon generally allows third parties to sell legitimate products, so it’s likely your infringement report will be ineffective (It’s important to note that this is not the case with counterfeit products.) Repeatedly filing infringement reports that Amazon determines are baseless can have consequences for your own seller account
Reason Two: Potential Risk to Your Own Amazon Account
Second, if Amazon does take action and suspend the reseller account, you may on the receiving end of a demand letter from a law firm, or worse, a lawsuit, alleging that you have tortiously interfered with the reseller’s business. The merits of those claims are generally weak, but nevertheless, you’ll be put in a position where you now have to defend your actions.
What You Can Do Instead
So, if filing an infringement report isn’t always the best option, what can you do to protect your brand on Amazon? The good news is that there are alternative strategies that don’t put your business at risk.
KJK’s eCommerce group is highly experienced in assisting brands identify and take down unauthorized resellers. With our approach, we put in place the necessary legal foundation to ensure you have valid legal claims against resellers. From there, we take direct action against resellers outside of Amazon’s framework.
This approach allows you to aggressively pursue unauthorized resellers without risking being put on the defensive. If you’d like to learn more about this approach or KJK’s eCommerce group contact Alex Jones (aej@kjk.com).