Immediate Concerns Over Unpredictable Brand Gatings and Removal Fees
Amazon’s recent trend of "instant/hard gatings" has created significant uncertainty for sellers like us, especially as we prepare to place large orders for Q4. As a medium to large seller carrying hundreds of SKUs, we often place orders in the hundreds of units per SKU, driven not only by demand but also by Amazon’s fee structure, which penalizes insufficient stock with additional fees.
However, the growing occurrence of instant gating, where brands are suddenly restricted with little to no warning or explanation, poses a serious risk. Sellers can find themselves unable to sell products they’ve already purchased, facing costly removal fees that can run into thousands or even tens of thousands of dollars. This is an enormous challenge, particularly because these gating decisions seem increasingly unpredictable and are being applied to an ever-growing number of brands.
Given this environment, it’s becoming increasingly difficult for Amazon sellers to confidently place large orders with any brand. The possibility of sudden gating creates a significant financial risk, making it hard to make sound business decisions when the threat of unsellable inventory and steep removal fees looms overhead.
To address this, we believe Amazon should consider revising its policies, especially around the removal fees associated with instant/hard gatings. Sellers should not be penalized for inventory they’re unexpectedly restricted from selling. Without greater transparency and predictability, the current situation discourages us from making the necessary investments to meet customer demand.
In light of these concerns, we ask: How can Amazon sellers confidently invest in large orders if brands can suddenly be gated without warning? The risk is significant, and it puts our businesses in a vulnerable position. We urge Amazon to review and refine its approach to brand gating, ensuring fairer treatment for third-party sellers.
Immediate Concerns Over Unpredictable Brand Gatings and Removal Fees
Amazon’s recent trend of "instant/hard gatings" has created significant uncertainty for sellers like us, especially as we prepare to place large orders for Q4. As a medium to large seller carrying hundreds of SKUs, we often place orders in the hundreds of units per SKU, driven not only by demand but also by Amazon’s fee structure, which penalizes insufficient stock with additional fees.
However, the growing occurrence of instant gating, where brands are suddenly restricted with little to no warning or explanation, poses a serious risk. Sellers can find themselves unable to sell products they’ve already purchased, facing costly removal fees that can run into thousands or even tens of thousands of dollars. This is an enormous challenge, particularly because these gating decisions seem increasingly unpredictable and are being applied to an ever-growing number of brands.
Given this environment, it’s becoming increasingly difficult for Amazon sellers to confidently place large orders with any brand. The possibility of sudden gating creates a significant financial risk, making it hard to make sound business decisions when the threat of unsellable inventory and steep removal fees looms overhead.
To address this, we believe Amazon should consider revising its policies, especially around the removal fees associated with instant/hard gatings. Sellers should not be penalized for inventory they’re unexpectedly restricted from selling. Without greater transparency and predictability, the current situation discourages us from making the necessary investments to meet customer demand.
In light of these concerns, we ask: How can Amazon sellers confidently invest in large orders if brands can suddenly be gated without warning? The risk is significant, and it puts our businesses in a vulnerable position. We urge Amazon to review and refine its approach to brand gating, ensuring fairer treatment for third-party sellers.
44 replies
Seller_OvL8C4BJWiuS9
You have to get authorization from the brand. That is the only way going forward. If you have been selling on the "Amazon approved me" platform, that is going out the window. Brands are now realizing their brands names are being abused and want to take back control.
Seller_W6vNnb9Dv4v3c
That is purely baloney. Once I pay for and/or acquire a product I should be able to sell it as I see fit. The "Brand" No longer owns what they or someone else sold me. That used to be true on Amazon and that is what made Amazon successful in the first place. Obviously small third party sellers are NO longer wanted on Amazon and they have "sold out" tens of thousands who made them successful in the first place. You can piddle paddle about rights but it is just that--Piddle Paddle. Amazon is now being run by lawyers and ill programmed bots. IMHO they are as two faced as can be.
Seller_OvL8C4BJWiuS9
What?!?! The brand always owns their name, and the products associated with it. WTH is piddle paddle? It's a business, they are protecting their livelihood.
If you patented something and then someone else started peddling it out on a marketplace at a ridiculous price, would you ok with that?
Seller_Sram36TnVt73c
That doesn't work when Amazon is gating products by category and not by brand.
I.e. video games now.
Popular books, music and DVDs, yesterday.
Seller_OvL8C4BJWiuS9
All produced, written, sung by rights owners (brands like Nintendo).
Seller_W6vNnb9Dv4v3c
TV0150---Get with the real world, not just the Amazon World. I can sell all kinds of "stuff" on sites like EBAY, the store I renrt space in, and other sites, that Amazon says I can not sell. The Brand apparently is only concerned with Amazon. In fact, I will do a little copy and paste and I doubt you can answer this one:
"How do stores, and I mean some Big Time Stores with many locations, get the authority to buy out the inventory of stores who had an insurance mishap (Fire or Flood), move that stock to their stores and sell, sell SELL? Why aren't they stopped by the so called Brand Owner?
I think I know! Because it is NOT aginst the law to sell that Stuff even if the Brand Owner does not give approval. Amazon is hiding behind a pile of Baloney when they gate products.
Seller_Sram36TnVt73c
That's like saying all the CD gating that went on was from Sony or Interscope but we know that's not true. Amazon has a music streaming platform and they're working on a video game streaming platform it's pretty easy to read the writing on the wall.
Seller_OvL8C4BJWiuS9
You don't seem to understand that the other sites are not the size of Amazon. Maybe the other sites will follow suit, maybe not. But what better place to start. You are all delusional if you this isn't going to happen with other sites as well, it's just a matter of time.
There is no real world with Amazon-it's their sandbox. And Nike doesn't know that you bought their product to turn around and sell it at a flea market or street corner for that matter, so your analogy lacks merit.
It is against the law to sell a brand as new, since any warranty is null and void after the sale to you. I can tell you that a brand we represent is banning sellers as we speak, pulling back the reigns because marketplaces have gotten out of control.
Read the forums and see all the sellers losing their accounts just for this reason.
Seller_OvL8C4BJWiuS9
And they can. At least it would be uniform and not a bunch of sellers either price gouging or pricing so low that it's impossible to compete. It's their platform, and these are now their rules.
Seller_8xPb0zS1apmF2
I didn't tag the moderators in the original post, but we would love it if they could answer the question in the final paragraph and address our concerns. Thanks!
@Dominic_Amazon
@KJ_Amazon
Seller_LImVvUWeyiCfQ
@Seller_OvL8C4BJWiuS9 already answered your question. It's just not an answer you're willing to accept. The Mods are not going to tell you any different.
It's not Amazon doing the gating on their own but rather Amazon at the behest of the brand owners.
The solution is pretty simple. Contact the brands, get a Letter of Authorization as well as another other terms, in writing, and have invoices in hand for when Amazon requests them. Without all of that, I certainly wouldn't chance this:
Welcome to the new Amazon.
Seller_LImVvUWeyiCfQ
I have no power over Amazon moderators, lol. I really doubt they're going to comment but if I'm wrong and they do, it will likely be to quote policy.
Seller_qTJiCxRI8PpIZ
Amazon does not and will not hold your hand. It is up to you to obtain your products through the correct channels. It is up to you to do your own research and obtain a Letter of Authorization for the products you wish to sell. If you can't get one, don't sell that product. It is pretty simple really. Never ever trust Amazon alone to dictate what you sell. They will always approve you at first then deactivate you as soon as you get even one IP complaint. If you don't want to accept that answer and follow the rules, you will be deactivated. Any mod is going to tell you the exact same thing. Amazon is not going to change their policy on this because if they do, they will get sued repeatedly. Unfortunately, brands can become gated at any time. Every company has the right to dictate who can and cannot sell their products.
Seller_1ZjQmvBmVkYSs
Amazon probably loves to be able to hold your inventory that you suddenly cannot sell for X amount of time and make money off the storage fees. They are delighting themselves.