Amazon sellers know the headaches of dealing with the ecommerce retail giant’s ever-growing blacklist of restricted brands, but Amazon’s varying reasons for these restrictions can often seem cryptic. Despite the platform’s vague explanations, there are many valid reasons a company might want to crack down on their brand appearing on Amazon altogether, including protecting the authenticity of the brand and protecting their authorized sales channels. That said, Amazon sellers aiming to sell products very similar to those protected by manufacturers and brands can still get around the challenges of restricted brands.
What does a restricted brand on Amazon mean?
When a brand is restricted on Amazon, third-party sellers may not sell the brand’s item without the manufacturer’s direct approval. Only authorized resellers may sell products made by a restricted brand.
How does a brand become restricted on Amazon?
A brand may submit a direct request to Amazon that the platform restricts sales of that brand. The site may also opt to restrict some brands so that customers are only shown purchase options that meet Amazon’s standards or are only sold by Amazon itself instead of third parties, ensuring the rigid customer service requirements are upheld and reducing the possibility of counterfeit items flooding Amazon Marketplace. (Buying a counterfeit item the customer thought was legitimate can undermine the positive customer service experience Amazon strives to maintain for all shoppers.)
Does restricted mean that these brands can’t be sold on Amazon?
Restricted brands can be sold on Amazon only after the seller goes through rigid procedures to obtain direct selling approval from the brand. If you want to sell a restricted brand on Amazon, you must go through official channels to do so; otherwise, you risk your store being flagged and potentially shut down.
Why are some brands restricted on Amazon?
Some brands are restricted because the company might not want its brand to be listed publicly on Amazon. This can be done for several reasons, including if the brand has exclusivity agreements with Amazon directly, meaning that third-party sellers are in direct conflict with the exclusivity agreement. Certain brands may also wish to stay off Amazon, as they believe their brand does not “belong” on the platform.
These Amazon restricted brands end up on this list because there is a significant risk of counterfeit goods flooding the market, especially in an online marketplace where people cannot see and touch the goods before they buy. The prevalence of counterfeiters online may drive certain brands to permit only authorized reseller agreements or approvals, as a brand might need to protect its own namesake against imposters. As experienced sellers know well, for every American brand with an expensive product, there are many foreign manufacturers willing to make knockoffs for a fraction of the cost. Product categories with abundant knockoffs available for purchase include apparel, smartphone accessories, beauty products, shoes, handbags, and fashion accessories such as watches.
This list of prominent counterfeit categories helps to explain why the list of Amazon restricted brands is constantly changing. Brands that sell these items are more commonly replicated and counterfeited than those in other departments, so these brands tend to dominate restricted lists. Larger brands often diligently check the competitive landscape to minimize counterfeiting, and some of these companies might even have full-time staff dedicated to tracking third-party sellers and sending them cease & desist letters that could ultimately lead to these competitors’ accounts shutting down.
Large companies working to protect their brands have a massive advantage in the online marketplace. These companies have years of experience carrying out lawsuits against counterfeiters, not to mention firm copyrights on their products. These actions may seem aggressive, but they exist to prevent knockoff companies from selling cheap knockoff items before a product launch that the brand has built toward – and invested in – for months. Many companies will thus include asking Amazon to restrict their brand in their e-commerce plans to eliminate knockoffs.
In addition to copyright issues with leading brands, multi-level marketing (MLM) companies might explicitly prohibit their distributors from selling their products online, as doing so might interfere with their own strategies. Sometimes, the decision comes not from these distributors or manufacturers, but Amazon itself.
Amazon may restrict certain brands to guarantee customers a consistent and reliable buying and customer service experience. Amazon’s logic is that, though a third-party seller can sell an item online very similar to a product made by a leading brand, buyers notice when a product’s quality – and, thus, a seller’s customer service – are superior. Amazon reviews show this trend: Many of the most negative reviews on Amazon can be attributed to poor customer service. Reliability is key to building your brand’s reputation, and though Amazon restricting your abilities to sell online may seem like too strong of interference, this tactic can build customer confidence in your selling.
Types of Amazon product category restrictions
Not all Amazon restricted brands are monitored the same way. Amazon classifies restricted brands into one of two classes:
Category Restrictions
To ensure its firm reputation for top-notch customer service, Amazon holds third-party sellers to the same high standards as other brands. In some cases, though, Amazon will aggressively push third-party sellers to uphold these standards, and among its tactics toward this end goal is gating certain product categories. For items in these categories, sellers must meet certain category restrictions before Amazon allows them full access to all potential customers.
When a seller is ungated in a category, it can better take advantage of lessened competition and expand its inventory. However, this setup can disadvantage smaller companies unable to handle sudden increases in sales volume. That’s why some brands, such as LEGO, only gate their products most vulnerable to counterfeiting. The best choice regarding gating will vary for every brand depending on its overall product selection, prices, and likelihood of counterfeit knockoffs.
In 2016, Amazon began instantly approving brands to sell in categories that, prior to this change, had required flat files and photos in their listings. After answering a few short questions, sellers became able to immediately list products in categories such as clothing, shoes, fashion, jewelry, watches, luggage, and automotive. Some categories, such as health, beauty, DVDs, and groceries, still require additional photographic proof of items or even wholesale invoices. To learn more about Amazon’s gated categories and their rules and stipulations, click here.
Brand Restrictions
Just as sellers face many category restrictions, so too do brands. These restrictions usually come about when a manufacturer insists that its items not be sold by specific brands and demands that Amazon enforces this restriction. High-end brands run into this issue frequently due to greater customer interest and likelihood of counterfeit. Any prominent company with many popular products likely expects to contend with counterfeit items at some point during its existence.
Many brands will limit a handful of specific ASINs, whereas other sellers will restrict all their product offerings. In many cases, sellers can only list ASINs if they have received explicit permission to do so, but unless your online selling business has a direct working relationship with the brand and is authorized to sell its products (with the paperwork to prove it), this permission is rare.
Amazon also has guidelines for properly listing product condition. Depending on the product category, you may even be able to list certain used items as new.
What item categories are most likely to be restricted on Amazon?
Amazon may restrict certain item categories even when counterfeit or branding concerns are minimal. These item categories include:
- Hazardous items: Items with well-known safety concerns (such as HAZMAT products) or products often recalled by their manufacturers are likely to be restricted.
- Baby products: Just as hazardous items may pose harm to certain customers, Amazon may exert strict control over baby products due to safety concerns. Amazon’s restrictions reflect that there is no room for variance in baby products’ health and safety standards.
- Gadgets and tech gear: Potentially hazardous gadgets and tech gear such as handheld laser products and hoverboards may be subject to additional safety restrictions.
- Perfume samples and testers: These items may be restricted on a case-by-case basis.
Given the variance among Amazon item restrictions, it may be best to do your research before selling and familiarize yourself with all of Amazon’s category restrictions before listing your products. Know all your items’ technical and chemical specifications ahead of time to save yourself from future headaches if you ever need to confirm your products’ information or safety.
which brands are restricted on Amazon?
Amazon does not officially maintain a list of restricted brands. This list is constantly changing and is thousands of entries long. Brands that aren’t on these lists may send cease & desist letters to third-party sellers to limit their sales of certain Amazon Standard Identification Numbers (ASINs), which is a product identifier exclusive to Amazon. Third parties regularly collect names and maintain the list as changes are made. This list on The Selling Guys is a great place to start, but not every list covers every item. Instead, treat these lists as baselines to help guide what and how you want to sell a certain brand.
Lists of restricted brands may not encompass brands restricted to varying degrees based solely on product condition. It’s always best to do your research, compare a list against your current inventory, and regularly check restricted brand lists for recent updates before listing products that may cause conflicts and, worse yet, lead to cease & desist letters.
If you’re in doubt about the products or categories you’re trying to sell online, your best bet is to contact Amazon directly. To read more about Amazon’s product restrictions, click here.
Where else can you sell brands that are restricted on Amazon?
If you find that a product or brand you want to sell online is restricted on Amazon and you’re unable to wait for sales approval, you can turn to other online marketplaces. Items restricted on Amazon can often be sold on Craigslist or Facebook.
You can also sell Amazon-restricted brands on eBay, but just as Amazon does, eBay maintains a list of restricted brands, called its Verified Rights Owner (VeRO) program, and may remove listings that violate these restrictions. A list of prohibited or restricted items for eBay can be found on their website.
How to handle a restricted brand on Amazon
If a product is restricted on Amazon, it’s not wise to tempt fate. Don’t try to break the rules if you can’t or don’t want to go through the proper channels. Instead, focus on selling those items in places where they might be allowed. Those options could include eBay, Facebook Marketplace, Poshmark, another seller app, or your own ecommerce site.
However, just because they can’t be sold on Amazon doesn’t mean that the brand is “home free” on other platforms. Similar to eBay’s VeRO program, every platform has its own set of restrictions and guidelines that must be followed. It’s never wise to break these rules, as they can result in financial penalties or closing your store altogether, sometimes without warning. You should weigh this risk before relisting Amazon-restricted products on other online marketplaces.
If you’d rather stay within Amazon, you may have options. Since manufacturers can enable third-party sellers to sell their products, you may want to gauge these brands’ interest in forging a long-term supplier-seller relationship with you. Present these sellers with the mutual benefits of making you an authorized reseller. In your daily selling activities, use the Amazon Seller app to determine whether an ASIN of interest is restricted. The Amazon Seller app tends to give accurate results, but it can have errors if an item has entered restricted status after being sent to Fulfillment by Amazon (FBA).
If you make no strides with the manufacturer, don’t move ahead. Listing an ASIN in a gated category without first seeking approval directly from Amazon can lead to trouble. Even listing a restricted item under the “Everything Else” category is an improper practice that could land your account in hot water. Likewise, deceiving practices such as describing an item as brand new when it is not can be flagged by bots, making these practices inappropriate options to circumvent Amazon’s restrictions.
It’s important to remember that Amazon is in a unique position compared to other online retail behemoths when it comes to brand restrictions. Amazon has significantly more resources than other online marketplaces to ensure excellent customer service, guarantee product consistency, and hold its third-party sellers accountable. They dedicate the time and resources that other platforms simply do not have. These factors also explain the abundance of third-party sellers operating through Amazon, and the large number of competitors you’ll face can increase the number of confusing and challenging scenarios you might face when operating an Amazon store.
For starters, no two seller accounts have the same preferences and operating methods. Likewise, no two seller accounts are subject to the same restrictions or permissions across a range of categories and specific ASINs. Just because one brand is permitted to sell a certain way doesn’t mean you can operate in the same manner. Additionally, if you find out that one of your competitors has been authorized by a restricted brand, you can’t also guarantee that this brand will choose to work with you too. In most cases, it’s safer to assume that these special permissions currently don’t apply to you.
Your best bet may be continually working toward establishing and fostering working relationships (and opening direct accounts with) restricted brands. When this relationship is correctly established, it mutually benefits both you and the supplier, as this relationship can help boost the supplier’s sales and expand their online presence while increasing your revenue.
Contact OEM Experts to explore your options regarding Amazon restricted brands
Ultimately, when making decisions regarding Amazon-restricted brands, be sure to know where you can and can’t sell your wares, and keep in mind that you have other online marketplace options if Amazon isn’t viable. You may want to speak with a company that specializes in successful online selling practices to help you navigate your possibilities.
At OEM Experts, we have more than 25 years of experience educating longtime and brand-new resellers on their options when it comes to restricted brands. We’ve spent a quarter-century developing strong relationships with leading manufacturers and chain stores, so you can obtain authentic goods from brands your customers love. We pride ourselves on offering our clients full attention from their OEM Experts representatives even outside business hours, because we know online shoppers are visiting your store around the clock. Contact OEM Experts today to get a firm grip on handling Amazon’s restricted brands and expanding your webstore’s selling options.
