Home – New Forums Selling online Legal Question – Distributors onselling product via ebay and amazon

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    Louise N
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    Hi there

    I am the sole distributor of a toy product throughout Australia. I sell the product online via my website and and I also distribute to baby shops / toy shops around the country.

    I would like to prohibit my distributors from onselling our product via Ebay and Amazon. Am I allowed to add a clause like to my Distributors Contract/Agreement. Is it the “done” thing or will just annoy them by doing this? I currently have around 50 stockists around Australia and only two of them are selling on Ebay, I just don’t want this number to grow.

    Thanks

    #1199273
    Paul – FS Concierge
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    Hi and Welcome to the Forums Louise.

    In an effort to get some relevant answers for you, I will move the tread to the Selling Online Section of the Forum.

    #1199274
    bb1
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    Louise N, post: 235797, member: 65062 wrote:
    Hi there

    I am the sole distributor of a toy product throughout Australia. I sell the product online via my website and and I also distribute to baby shops / toy shops around the country.

    I would like to prohibit my distributors from onselling our product via Ebay and Amazon. Am I allowed to add a clause like to my Distributors Contract/Agreement. Is it the “done” thing or will just annoy them by doing this? I currently have around 50 stockists around Australia and only two of them are selling on Ebay, I just don’t want this number to grow.

    Thanks
    Hi Louise,
    I will ask my usual why question.
    Why?, isn’t the idea to have as many sales channels as possible ?

    And I say that having some distributors refuse to deal with me because I sell via Ebay. But I just ask why limit your sales reach?

    #1199275
    Fuggsy
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    bb1, post: 235822, member: 53375 wrote:
    Hi Louise,
    I will ask my usual why question.
    Why?, isn’t the idea to have as many sales channels as possible ?
    ?

    I agree with bb1 here WHY

    But if you want to go down that path then look at eBay VERO

    The Verified Rights Owner (VeRO) Program allows intellectual property rights owners to ask eBay to remove certain listings that offer items or contain materials that infringe on their intellectual property rights. These rights can include trademark, copyright, and/or other legal rights.

    http://vero.ebay.com/

    I doubt you will make any friends with your distributors and you may even lose some of them but its your business…

    #1199276
    Anonymous
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    You might be able to get away with something like a territory clause, making it that they can only sell in their area but that can hurt you in the long run as you lock yourself down to specific customers and you can’t sell into their territory or get extra resellers there.

    The only real way is to stop selling to them and that’s just going to affect you more than them. Would the loss of your product have any significant effect on the resellers? Since you’re the wholesaler you could look at undercutting them online but you run the risk of losing wholesale customers. You can indirectly undercut by offering things like free shipping or discounts at checkout if selling multiple items. I know some baby shops make a significant amount of their business from online sales and being stuck with just selling instore might not be worth their effort. You have to decide if your retail side is more important than wholesale.

    Unless the profits are greater from retail than wholesale, I’d stick to wholesale and let your resellers worry about things like selling costs and holding inventory. You could come to an arrangement with the large online sellers to take a referral fee by referring from your site.

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