Retail Arbitrage or Not? Amazon’s Policy vs. Enforcement Gap
Our account was suspended for an inauthenticity complaint on ASIN B00F3HD26O, even though we fulfilled 7 orders of that item by buying the exact product from Walmart. We submitted all available proof – the 7 Walmart purchase receipts, order screenshots, and bank statements showing each transaction – to verify authenticity. Amazon nevertheless rejected our documentation, insisting on invoices or authorization letters from the brand’s authorized suppliers. In other words, we had real receipts from a major retailer, but Amazon claimed they weren’t valid proof. This is puzzling given Amazon’s own guidance on retail arbitrage:
Amazon’s own selling guide and blog explicitly support retail arbitrage. For example, Amazon’s Seller Blog defines “retail arbitrage” as buying products at lower prices from retail stores and reselling them for profit. A recent Sell on Amazon post (May 2025) lists “Retail Arbitrage” as a top sourcing method, noting it requires minimal investment. In short, Amazon publicly acknowledges that buying from stores like Walmart and reselling is a legitimate business model.
https://sell.amazon.com/blog/reselling
Amazon’s policies require a “valid supply chain” for new products. Crucially, Amazon (through its support forums) has made it clear that a retailer like Walmart is not considered an “authorized” link in the supply chain. In fact, Amazon says it “will not accept receipts from other retailers” as proof of authenticity . This implies that any item obtained via retail arbitrage is treated as coming from an invalid source. In practice, Seller Support rejected our Walmart receipts on exactly this basis, requesting only invoices from brand-approved distributors or Letters of Authorization – documents an arbitrage model can never provide.
If Amazon indeed allows retail arbitrage, it’s unclear what documentation arbitrage sellers are supposed to show. No arbitrage seller will have a brand-issued authorization or a wholesale invoice for goods bought in-store. Asking for such documents contradicts the arbitrage model. Other sellers have pointed out this paradox:
✅ Amazon publicly recognizes retail arbitrage…
❌ But enforcement teams frequently reject invoices and request documentation arbitrage sellers don’t have.
How can Amazon expect someone to furnish a Letter of Authorization or a distributor invoice for a purchase made on clearance at Walmart?
We respectfully ask Amazon to explain how retail arbitrage sellers should validate authenticity under these rules. If receipts from Walmart-style retailers are categorically disallowed, then Amazon should say so clearly – and perhaps revise its public guidance. If arbitrage is truly endorsed, then Amazon should accept legitimate retail receipts or provide an alternative path to prove authenticity. The current mixed messages are leaving honest sellers confused and penalized.
Thank you for any insights or suggestions on how to resolve this contradiction.
Retail Arbitrage or Not? Amazon’s Policy vs. Enforcement Gap
Our account was suspended for an inauthenticity complaint on ASIN B00F3HD26O, even though we fulfilled 7 orders of that item by buying the exact product from Walmart. We submitted all available proof – the 7 Walmart purchase receipts, order screenshots, and bank statements showing each transaction – to verify authenticity. Amazon nevertheless rejected our documentation, insisting on invoices or authorization letters from the brand’s authorized suppliers. In other words, we had real receipts from a major retailer, but Amazon claimed they weren’t valid proof. This is puzzling given Amazon’s own guidance on retail arbitrage:
Amazon’s own selling guide and blog explicitly support retail arbitrage. For example, Amazon’s Seller Blog defines “retail arbitrage” as buying products at lower prices from retail stores and reselling them for profit. A recent Sell on Amazon post (May 2025) lists “Retail Arbitrage” as a top sourcing method, noting it requires minimal investment. In short, Amazon publicly acknowledges that buying from stores like Walmart and reselling is a legitimate business model.
https://sell.amazon.com/blog/reselling
Amazon’s policies require a “valid supply chain” for new products. Crucially, Amazon (through its support forums) has made it clear that a retailer like Walmart is not considered an “authorized” link in the supply chain. In fact, Amazon says it “will not accept receipts from other retailers” as proof of authenticity . This implies that any item obtained via retail arbitrage is treated as coming from an invalid source. In practice, Seller Support rejected our Walmart receipts on exactly this basis, requesting only invoices from brand-approved distributors or Letters of Authorization – documents an arbitrage model can never provide.
If Amazon indeed allows retail arbitrage, it’s unclear what documentation arbitrage sellers are supposed to show. No arbitrage seller will have a brand-issued authorization or a wholesale invoice for goods bought in-store. Asking for such documents contradicts the arbitrage model. Other sellers have pointed out this paradox:
✅ Amazon publicly recognizes retail arbitrage…
❌ But enforcement teams frequently reject invoices and request documentation arbitrage sellers don’t have.
How can Amazon expect someone to furnish a Letter of Authorization or a distributor invoice for a purchase made on clearance at Walmart?
We respectfully ask Amazon to explain how retail arbitrage sellers should validate authenticity under these rules. If receipts from Walmart-style retailers are categorically disallowed, then Amazon should say so clearly – and perhaps revise its public guidance. If arbitrage is truly endorsed, then Amazon should accept legitimate retail receipts or provide an alternative path to prove authenticity. The current mixed messages are leaving honest sellers confused and penalized.
Thank you for any insights or suggestions on how to resolve this contradiction.
30 replies
Seller_qTJiCxRI8PpIZ
You can't buy products from a brick and mortar store to resell on Amazon, period. That has never been allowed here. It is that simple.
Seller_dkvNFPkFjSVLg
Its not allowed, regardless of how many old and outdated posts you come up with.
YES - many do it.
YES - if you get caught, you are gone.
Each can assess how much risk they want to take on.
Seller_6b4RZlJJQSp3a
go with real invoices, don’t forget the LOA. Go with real brands, that’s the only way to sell on this platform if you don’t want headache… otherwise you’d be cursing day/night while doing business on this platform
Seller_HRcJa1gdGHeov
Like everything Amazon does there are no clear rules and enforcement makes everything vague at best.
RA/OA is technically allowed and Amazon makes a significant amount of money off it. In the toys and games category, the average life of a toy is about 18 months, any toy on Amazon older than 3 years is RA/OA. There are no magical warehouse of 10 year old Lego sets, 5 year old Funko Pops, .... Having a valid invoice dated within the last 365 days (let alone 180) for a 10 year old Lego set is LITERALLY IMPOSSIBLE (yet they are all for sale here); Amazon might as well ask for a unicorn. If Amazon adhered to their sourcing guidelines, my guess is 75-80% of their catalog would disappear.
The problem is, as others have said, if there is a complaint or even more critical (a bot flags your account), Amazon will ask for wholesale invoices dated within the last 365 days (maybe even 180). It is a joke and more than a little hypocritical, but this is Amazon.
Seller_08TZq9sOIaGvv
I can make this very simple for all the RA folks here.
If your customer requests warranty repair/replacement from the manufacturer, will the warranty be honored? I do not mean that the mfg. feels bad for your customer and decides to honor an invalid warranty request. I mean, is this a VALID warranty request 100%?
For example NIKE has a 2 year warranty, but you must have purchased from an authorized dealer directly, not VIA any other seller and also not an outlet store. Your customer will be refused warranty if you do not have a current valid AGREEMENT to retail the products, period. A receipt or an invoice is not enough here, period.
That's it, it is a very simple test.
So now you may be asking WHY. Well that, too, is very simple. If you sell as "NEW" it means the product is 100% covered under the mfg. warranty.
If you are not an authorized (contract in place) retailer of this product, then you are fraudulently misrepresenting the product as NEW on Amazon.
Amazon NEVER gets in the middle of YOU and a legal issue. They simply reduce their legal surface area by stopping you.
eBay doesn't protect themselves as well, you will get greater longevity for fraudulent listings.
If you are not sure, call the mfg. and try to get a replacement under warranty. Show an amazon receipt where it was purchased from your amazon store. See what they say.
Seller_8ESHZD3bXlVUv
It's simple. This business model is allowed and even encouraged by Amazon, but you can't sell items sourced this way as "new" because the product warranties are likely not carried forward to the end consumer, and the primary chain of provenance cannot be proven authentic with a "receipt".
Amazon won't put it into writing (don't know why) but anything sold on Amazon via resale like this must be listed as "like new" or less condition. "New" condition must show a supportable/provable chain of custody from the factory to you as the seller as well as be paired with a letter of authorization from the brand owner that permits specifically, sale on Amazon.
Even if you do this, there is still significant risk involved as you are always one AI bot away from suspension, or the wrong "keyword" used in message correspondence between yourself and a buyer. All I buyer has to do, really, is say "counterfeit" or some other equally triggering word. It doesn't have to be an accusation either - it can be something as simple as "I just wanted to thank you for making sure this item was not counterfeit". The use of this word (and many others like it) will trigger Amazon bots and your account will probably be in for some rough waters in the future.
Seller_HRcJa1gdGHeov
100% agree; large companies do not have the time or effort to manage LOA's; that is exactly why they use distributors.
The supply chain is much more complicated that Amazon thinks.
Seller_SV4zvdE5dkeEj
I agree , I just read that link you posted and its confusing. That was written 1 day ago with everything going on, I also don't get that.
Seller_aUbEyzlSSnsDJ
You must use the term used like new for the condition. if not, you are done.