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Read onlyI am confused to see some discussion happening here. We source products from distributors, and all those are big brands. I don't think they would issue an LOA to small retailers like us.
You sense you have a problem, and you are right to be worried.
A lot of sellers in your situation would continue to bury their heads in the sand, hoping that Amazon won't notice, or trusting their "totally legit distributors" or "online mentors" or "masterclass gurus" will provide some sort of hack to get them out of Section 3 jail.
If you want to avoid the inevitable, you know what you need to do.
No. Get the required LOAs for the big brands, or start selling items that don't require LOAs.
If you think the solution is stop selling on Amazon, you might as well keep going selling the big brands until Amazon forces you to stop, understanding that you will likely be unable to open another Amazon seller account in the future.
Established national or global brands often do.
Small or medium sized brands rarely do ... or Amazon does not give them the power to gate their products in this way.
You said you source "big brands" ... and those are the type that generally lead to problems for small sellers.
Depends on how much money you are risking and what you are willing to loes - tens of thousands of people lose because of this every year. There are also people who never have an issue.
Well, no. That's plan B. Plan A is try to get an LOA
As to your question. I believe the answer is "Yes." I don't know about anyone else, but if I don't own the brand and am setting up a brand new listing, I have to apply for it. Every time. This started recently, and I never saw an announcement about it. Also, there's a way around the initial block by setting up ASINS through a different method (ie the api )and I HIGHLY suggest you don't do it. In a few hours after creating the listing; you'll know why. I had the official LOA so did it just to get the listing created quicker, in the end it was more trouble.