The practice of restricting who can sell specific products on the Amazon marketplace to approved vendors. This involves setting criteria, such as requiring sellers to demonstrate a history of reliable performance, provide proof of product authenticity, and meet specific sales volume targets. For instance, a manufacturer may restrict sales of its premium skincare line to authorized distributors, preventing unauthorized or potentially counterfeit products from being sold under its brand name.
This strategy offers substantial advantages, including safeguarding brand reputation, reducing the risk of counterfeit products reaching consumers, and maintaining consistent product quality and pricing. Historically, the rise of third-party sellers on e-commerce platforms led to an increase in counterfeit goods and unauthorized sales, prompting brands to seek methods to control their distribution channels and protect their intellectual property rights. Consequently, the implementation of such restriction policies has become a crucial tool for brand protection.
