I would highly recommend asking this question to your lawyer, not to Amazon`s sales forums. I`m sure you`ll get 101 different answers from a number of people who are trying to be smarter than they probably are, but if someone here isn`t an experienced lawyer in distribution contracts, it really doesn`t mean much. Talk to your lawyer. If he/she is good with distribution contracts, they will help you, if not, they will recommend a good lawyer for you. Exclusive contracts must be very well written and complete in order to guarantee the protection of both the manufacturer and the distributor. I`ve been selling on Amazon for over two years. I created offers for different manufacturers. Recently, I signed two exclusive distribution contracts with two of them that give me the right to represent them on Amazon. Some of my products have a lot of reviews, so other sellers have jumped on offers.
Since I have the contracts signed, I started emailing the sellers to get out of my offers, and most of them seem to understand, but one of the sellers responded with a threat. He explains that I „played with his account“ and that „I`m going to be sorry from now on.“ And that he called me on Amazon. Yes, I want to cut the competitors. „Why would the manufacturer want to reduce its outlets from 30+ to one“ – the amount of sales will not be different if we continue to sell on current asin`s. You should definitely convince him that you can`t refuse – yes, that`s true – I`m preparing to pay the price, it`s only if Amazon prevents other sellers from selling these products on the platform, given that the products are available through many distributors. What we need is that Amazon is just an exclusivity – the manufacturer can agree – will Amazon agree? While companies can pressure low-wage workers to protect trade secrets from leakage, there is also a more cynical explanation: simply depriving competitors of workers they can hire, Lobel said. Prohibitions on competition can also lower workers` wages. Traditionally, a key strategy to prevent employees from converting to a competitor has been simply to offer competitive salaries, but a company that uses non-compete rules may feel less pressure to pay well.
L2, a subscription-based business intelligence service, has published an amazon intelligence study. It examines, among other things, the impact that these agreements could have on third parties, including many small businesses. In 2015, Amazon launched a new store on its platform, consisting of products that you won`t find on other e-commerce sites. He wanted to sell an aura of exclusivity that tends to generate interest, nostalgia and money. People tend to want what they can`t have anywhere else and/or what others don`t have, which is the driving force behind exclusives. The L2 study was triggered by questions from other brands such as Coach Inc., Nordstrom and Oakley Inc. And it focuses on the big brands` fear that Amazon has set up a pay-as-you-go system for brands looking for more exclusivity and better positioning on the site. This case seems to look like an ongoing case, which I have, where a seller claims exclusivity of Marvel/Disney licensed clothing, but does not manufacture it. The spread of non-competition to low-wage work was felt across the country last year, when the Huffington Post reported that Jimmy John`s had signed competition bans on some of its permanent workers who covered sandwich vendors in the three miles of Jimmy John`s sites.
Members of the U.S. Congress have called for a federal investigation into the sandwich chain`s use of the agreements. The Amazon contract seems more extreme: not only is it pushed on temporary workers whose chances are inevitably reduced by their planned dismissal, but it is also explicitly in its potentially unlimited geographical scope. . . .