The video explores the challenges and potential decline of reselling on Amazon, specifically focusing on issues around supplier verification and Amazon's policies. Many resellers have been flagged by Amazon to prove their supply chain custody, requiring them to provide documentation showing they are purchasing from authentic suppliers. This effort aims to weed out counterfeit products and ensure the authenticity of items sold on the platform.
Several sellers report difficulties in this verification process, with accounts being deactivated even after submitting proper documentation. Amazon's system sometimes flags items as coming from unverifiable suppliers, leading to the shutdown of seller accounts and the seizure of funds and inventory. This creates significant challenges for resellers, especially those who source products from wholesalers and do not have direct relationships with brands. Many believe that Amazon is favoring direct relationships with manufacturers, leaving resellers vulnerable to account deactivation and business disruption.
Moreover, it is noted that manufacturers are not always cooperative when it comes to supporting resellers, particularly when those resellers undercut market prices. Manufacturers often weaponize Amazon’s policies to control pricing and protect their relationships with retailers. As a result, Amazon's reselling environment has become increasingly hostile, particularly for those who do not adhere to strict supply chain requirements.
Ultimately, the video concludes that the era of reselling on Amazon may be ending, as the platform seems to prefer working directly with brands or manufacturers rather than third-party resellers. The future for sellers lies in building their own brands and products, which allows them to control their supply chain and avoid the risks associated with reselling.
For a deeper dive into these issues and to hear the full discussion, check out the video below.