Letter of Authorization
Note: This article was posted with inaccurate information that has since been updated
In this article, we will cover what a Letter of Authorization is and how it helps you sell with Amazon.
A Letter of Authorization (LOA) is a license agreement between an owner of a trademark/design patent/copyright and a third-party seller to authorize that the third party (licensee) can use the Intellectual Property (IP), in exchange for consideration. Such an agreement outlines the ways in which the licensee may use the property owned by the licensor.
Licensing is beneficial for IP owners, as it allows them to generate revenue out of their property by making it available to others. The benefit to the seller is that the license agreement allows you to list your products using the intellectual property rights of other entities with their permission, subject to the terms of the agreement.
Considerations for sellers who need to provide a Letter of Authorization in order to sell with Amazon:
1. The Letter of Authorization is usually only granted to businesses/sellers large enough to buy in bulk from the brand.
2. If you purchase directly from the brand, consider contacting them to find out what their minimum purchase order is to get registered as a distributor. Be sure to get a Letter of Authorization from the brand for use with Amazon at that point, and ensure the letter is up to date.
* The five key terms which must be present in every IP licensing agreement (LOA) submitted to Amazon are:
- 'Licensor'–The company/brand providing the rights to intellectual property
- 'Licensee'–The company/brand receiving the rights to use the intellectual property.
- 'Grant’–The intellectual property being licensed and the scope of rights granted
- 'Geographic Scope’–The specific territory or territories where use is authorized (may be worldwide)
- 'Term’–The duration of the authorization (may be perpetual)
For more information, check out the Letter of Authorization page.
62 replies
Seller_kIukTwdhvntAp
"3. Nothing you buy from online or physical (brick-and-mortar) retailers can be resold. That would be considered a "counterfeit" product under the new rules and you may risk having your account permanently deactivated."
FINALLY acknowledging that the rules HAVE changed! Good going on that!
"That would be considered a "counterfeit" product under the new rules..."
Seller_jvfhuXWiqaKrs
Hi @Glenn_Amazon,
How can a brand owner who has low quality unauthorized sellers listing their product on Amazon require Amazon to implement this Letter of Authorization requirement, in order to remove unwanted resellers who create a poor customer experience, and leave only legitimate resellers who can provide a LOA?
Seller_nRFmxiQg4EGrw
Great info.
Now do you think that you could get TPTB to removed "or receipt" from the help files about proving authenticity? Those of us that try to point out that only legitimate wholesale purchases provide a valid supply chain often get pushback from people saying "well Amazon says 'invoice or receipt'", when anyone following the forum (even before this post) knows that a receipt no longer cuts it in 99+% of cases.
But thanks for giving us something to point to.
Seller_l0pymMN17FoSb
What do we do with the LOA when we have it?? Where and how do we submit the LOA to Amazon??
Seller_fEQJ9PNZpolZT
**3. Nothing you buy from online or physical (brick-and-mortar) retailers can be resold. That would be considered a "counterfeit" product under the new rules and you may risk having your account permanently deactivated.**
We own our own brands and are brand registered, and no other entity has authorization to sell our products. We sell almost exclusively on Amazon. We have never opted into Amazon's Liquidations option for Unfulfillable Inventory. One reason is that we do not want people buying our (potentially damaged) products at a discount and then trying to sell them on our listings to turn a profit.
So, does this now mean that those who buy from Amazon's liquidators also wouldn't be allowed to sell those units on our listings? Or are they somehow exempt?
Seller_rFyxk4x2i2V6L
The "Letter of Authorization" page you link to and partially quote here is about License agreements, not reseller or distribution agreements. A license agreement between a "Licensor" and "Licensee" is where the licensee is manufacturing products with the IP of the Licensor on the product. The page specifically calls out "Distribution rights / Reseller agreements" and "Commercial Invoices" as "common examples of documents not acceptable as Letter of Authorization." If Amazon has "new rules," they are not on this page.
Seller_P9D3VoICpyybS
3. Nothing you buy from online or physical (brick-and-mortar) retailers can be resold. That would be considered a "counterfeit" product under the new rules and you may risk having your account permanently deactivated.
Can you please cite where this is anywhere on Amazon's help articles or policies page, that way we can reference it for later. Thanks.
Seller_kFqn4WvdxnEjS
Even if you have a LoA, you can still be deactivated under S3 for suspicion of inauthenticity. Then they will ask for a "supplier supplier invoice" hysterically.
Seller_8UM4AOEfQpUo3
How does requiring all this not go against the first sale doctrine? If I buy it I can sell it, I don’t need authorization. To use a brands intellectual property would be using their images and content, but since the listing is on Amazon, it’s now controlled by Amazon, hence I can sell on said listing as it’s now controlled by Amazon.
Seller_IFRrkIcoHoGF8
what i dont understand is how does amazon RANDOMLY suspsuspend an account for S3 for suspicion of inauthenticity- WITHOUT A CUSTOMER COMPLAINT or any complaint?
If nonobody has complained and everyone is happy and satisfied, WHY ON EARTH would amazon pick YOU to suspend and start asking for paperwork &holding all your funds, like your some sort of criminal? amazon has lost all logic at this point and making it extremely hard to sell now a days.days.smh.
