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Retail Arbitrage Is Allowed, But Amazon Rejects Retail Invoices
Hi Sellers,
I’ve been reading policies and watching videos on Seller University regarding Amazon’s policies on Retail Arbitrage. I’ve also read posts on seller forums, where many sellers claim that it is no longer allowed on Amazon.
However, Amazon has clearly stated on their website that it is allowed "https://sell.amazon.com/blog/reselling"
If Amazon’s officially acknowledges retail arbitrage as a legitimate reselling model then how can they expect Letter of Authorizations or Supply chain documents from sellers when it comes to suspension.
This raises a question: How can a retail arbitrage seller provide a Letter of Authorization if their model is based on purchasing from retail stores?
This creates a frustrating situation:
✅ Amazon publicly recognizes retail arbitrage as a legitimate business model.
❌ But enforcement teams frequently reject invoices and request documentation arbitrage sellers don’t have.
Sellers need clearer policies and fair enforcement. If Amazon acknowledges arbitrage as valid, they should also ensure that invoices from well-known retailers are accepted without requiring documents that contradict the business model.
Let’s discuss and find ways to bring attention to this issue.
62 replies
Seller_GECZ7Kd9Nlj7u
@Connor_Amazon @priscilla_amazon @Roberto_Amazon
Seller_nRFmxiQg4EGrw
Yes, RA is technically allowed.
Notice the part where it says "if you follow Amazon selling guidelines"; which among other things often include being authorized to sell the products you are selling. So if you go into Target, buy the latest LEGO set, and try to sell it, you will still get suspended, because you aren't authorized to sell LEGO.
If Amazon is rejecting your receipts (they are not invoices), and you do not have authorization from the brand, then you are probably done here.
Seller_nRFmxiQg4EGrw
Most likely, you can't.
Buying from retail sources doesn't change that.
But I do agree 100% with you that Amazon needs to be more clear about this. Part of the problem is that Amazon is a monster that has been around for over 20 years. As policies change, the help files do not always reflect that. This is not the only place where that is true.
Seller_rI7BZIczK8iAC
Unfortunately that's not the first time we see VERY old Help pages or similar directly from Amazon. These informations were true some years ago, but in the meantime the practice has been changed without Amazon taking down this false and outdated information.
So better to come to the forum and ask than only rely on Amazon's information digged out somewhere.
Seller_oDXVaydIpi3Hi
Amazon unethically plays both sides of the field.
Seller_pixSY1g97J4aL
As a number of other people has commented you need to ensure you are "following Amazon selling guidelines"
Firstly you must not list a product you purchase from a retail store as "new"
Once a product has been sold to a consumer it cannot be resold by them as new for a number of reasons. These include:
- Original warranty cannot be conferred to a new buyer
- Supply chain has been broken so the storage and handling conditions are uncontrolled (eg If someone leaves the products they are planning to sell in their garage where it freezes and then thaws it can completely ruin some products)
- The product being sold in the retail store at a discount may be approaching expiry or be damaged, defective or a superseded design.
Secondly you must get permission from the brand owner to sell their product using their marketing assets and intellectual property. Each brand owner spends a lot of money developing their brand and wants to ensure it is represented in a specific way. Offering product which has been discounted as seconds and selling it as new on Amazon can severely damage the reputation of the brand as consumers rarely take note of who is selling the product and may leave negative feedback for the brand/product when they receive damaged or expired product.
The reason why Amazon don't openly tell sellers this is that their business model is built around sales volume. Every sale generates revenue for them from referal fees, commission, advertising fees, fba fees. It s not in their interest to prevent unauthorised sellers as this reduces their potential profits
Seller_Sram36TnVt73c
While RA is technically allowed, it is trumped by brands that do not want unauthorized sellers selling their items on Amazon.
For example, you definitely do NOT want to go to a Nike outlet store and resell merch from there on Amazon.
You also have to be careful about items that have a warranty when sold as NEW from an AUTHORIZED reseller, as that warranty is probably not transferable and thus such items have to be graded as USED because YOU are the original purchaser.
Seller_nRFmxiQg4EGrw
I doubt you will find anyone to disagree with this statement.
That's why it's important to read the forums; to learn the reality, rather than the outdated left-over fantasy that is the help files from 10+ years ago, when Amazon was a very different place.
Seller_nRFmxiQg4EGrw
Of course they don't. Retail receipts are not a verifiable proof of authenticity.
Seller_nRFmxiQg4EGrw
Ignoring the fact that these places give receipts, not invoices, do you expect Amazon to have an approved list of retailers?
Sure, Target, Walmart, Best Buy; all good. But what about TJ Maxx? Marshals? Big Lots? Are these okay? or Ed's Corner Market in your neighborhood?
The line has to be drawn somewhere; the easiest place (with least liability) is at "It's Retail".
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