Amazon Marketplace Sellers

The Risks of Selling through Amazon’s Fulfillment Program: Corporate Counsel Turns to Kronenberger

Press & Published Articles   |   Wednesday, April 27, 2016

Many online sellers claim to be making big profits off of the private label selling model, wherein sellers purchase bulk units of products from Chinese manufacturing websites and sell them on Amazon at a markup. However, it’s important to consider the legal complications that come with this selling platform. In the article “The Other Way Around,” Corporate Counsel turned to Partner Karl Kronenberger to explain some of the risks associated with selling private-label goods.

“There’s been unbelievable growth with Amazon, especially in the past four or five years in the marketplace,” Kronenberger said. “But you’ve got some who are not very sophisticated in their legal outlook. Although importing a generic product from China and putting your brand on it may seem straightforward, advocates for this selling model downplay the host of significant legal risks associated with it.”

Some of the risks outlined in the article include the challenge of holding overseas manufacturers accountable for deliverables, enforcing indemnification agreements against overseas manufacturers, as well as the risk of sellers “hijacking” other sellers with cheaper, counterfeit products that may be defective.

“[Amazon listing hijacking] so rampant that we’re sending out many cease-and-desist letters each day for this,” Kronenberger said.

Though selling through the Amazon Fulfillment program is appealing, it’s important to weigh the potential benefits against the potential legal shortfalls of the model

Read the full article here

This entry was posted on Wednesday, April 27, 2016 and is filed under Amazon Marketplace Sellers, Internet Law News.




Karl S. Kronenberger
Partner




Related articles

Data Breaches
Firm Scores $275,000 for Employee Whose Employer Snooped…

In 2014, the East Whittier City School District in California was sued for violating various federal and state anti-wiretapping laws and for invading the privacy…

Read More

Amazon Marketplace Sellers
Online Sellers Beware: FTC Increases Scrutiny of Fake…

FTC Gets More Aggressive In Online MarketplacesThe five-star review has become the Holy Grail for many Amazon sellers. After all, in the hyper-competitive world of…

Read More