Countries
Read onlyHi Everyone,
I hope you all are doing well. Here is some thing to confirm that as Amazon usually ask for an letter of authorization (LOA) or License Agreement to provide the prove of our purchasing and indicate that the right owner give you a permission to use their trademark and allowing you to sell their products.
So I would like to confirm what will be the exact difference between LOA and LA and who will be the authorized to provide LA and will Amazon accept the LOA or LA of authorized brand distributor?
Looking forward to hearing from you guys.
Thanks you.
1. Most sellers simply use their commercial retailers credit account invoice to show Amazon.
Amazon knows what an invoice includes. An invoice is used when Your USA business has a retail commercial credit account with the manufacturer. Most all invoices included.
- YOUR: business name, business address, business phone, sales tax exempt number, your EIN number, your credit line, and terms of sale
- MANUFACTURER’S: address, phone, EIN number, account Rep’s name
- PRODUCT’S: quantity, SKU-Model number,
- DISCOUNTS PROCESSES ON THIS PURHASE: quantity, sale, specials
- TERMS OF SHIPPING: method, who pays, company used, tracking number
- TERMS OF PAYMENT: 30 days, 60 days, 90 days, interest assessed
Some have more, but they all use the same basic format. Even when you call and make a small online order and pay by credit card, an invoice is still sent to you separately containing all of the above.
If you purchased the items from a distributor using cash and carry, or on-line with a credit card, and paid sales tax on it, you are not buying wholesale from the manufacturer.
2. Letters of Authorizations, the trick request by Amazon.
Did you notice that Amazon always asks for a manufacturer’s invoice first, then asks for/or a letter of authorization? Amazon knows how businesses are operated.
If you have a commercial retailers account with a manufacturer, your invoice as described above will suffice. You will not need a Letter of Authorization because the invoice says it all. If you really need one, your manufacturer Rep handling your account could get one for you.
If you do not actually have a commercial account with the manufacturer, Amazon knows companies will not give any letter of authorization to individuals without a commercial account.
3. A Licensing Agreement is a contract between you and the actual manufacturer and rights owner of the product. It will contain all information agreed upon by you and the rights owner. However, make sure the Agreement says that you are allowed to sell the Right's owner on the Amazon site, as many brand owner's do not allow it.
4. Distributors. In the retail trade, which you are working, one must understand the different types of distributors, meaning the real ones, and the fake ones.
4A. Real Distributor:
- EX 1: The manufacture makes the product in a home location but does not sell the product there. They sell their products thru a distributorship office, one on the east coast, and one on the west coast. The only place you can buy the product is from those 2 locations. Each has a sales rep, and you can only buy from that Rep with a company account. they take your order and the factory ships. If there is any problem, the Rep will take your returns, and you get wholesale pricing.
- EX 2: The manufacture makes the product is a home location but does not sell the product there. The country is divided into territories, each with a Rep. When you want their product, you contact the manufacture, who intern takes your business information and gives it to your local Rep. The Rep makes personal calls to your business to see if you are who you are, and will stop by to refund any products you have a problem with.
4B. The fake distributor:
This is the distributor you need to watch out for. They are actually just a retail store calling themselves a distributor (because they distribute to the public, products of others). They sell anything they can get their hands on cheap. They have the accounts with manufacturer's and buy wholesale, then mark it up and sell it to you (at the so called wholesale price). They don't carry any manufacturer's full line just stuff they can buy for cheap. They can even through in a few counterfeit items depending on how smart they believe YOU to be. They sell with an ALL SALES FINAL policy (because their deals and pricing are so good).