Authorization Letter and Amazon Non-Enforcement of Exclusive Distribution Policy

An authority letter from a manufacturer or distributor for a company is often required for several reasons:

  1. Verification of Authenticity: It verifies the company’s authenticity and legitimacy in dealing with the manufacturer’s or distributor’s products.
  2. Authorization: It confirms that the company is authorized to represent the manufacturer or distributor, sell their products, or provide services related to their products.
  3. Accountability: It ensures that the company is accountable for its actions and decisions related to the products, and that it will comply with the manufacturer’s or distributor’s policies and guidelines.
  4. Trust and Credibility: It helps establish trust and credibility with customers, partners, and other stakeholders, as it demonstrates that the company has a legitimate relationship with the manufacturer or distributor.

Some common scenarios where an authority letter may be required include:
  1. Business Partnerships: When forming partnerships or collaborations with other companies, an authority letter may be necessary to confirm the company’s authorization to represent the manufacturer or distributor.
  2. Tendering or Bidding: In government or private sector tendering or bidding processes, an authority letter may be required to demonstrate the company’s legitimacy and authorization to provide specific products or services.
  3. Regulatory Compliance: In some industries, regulatory bodies may require companies to provide authority letters to ensure compliance with regulations and standards.
  4. Product Warranty or Support: Manufacturers or distributors may require authority letters to ensure that companies providing warranty or support services for their products are authorized to do so.

The authority letter typically includes information such as:
  1. Company Details: The company’s name, address, and contact information.
  2. Manufacturer/Distributor Details: The manufacturer’s or distributor’s name, address, and contact information.
  3. Scope of Authorization: A clear description of the company’s authorized activities, such as sales, distribution, or service provision.
  4. Terms and Conditions: Any specific terms and conditions related to the authorization, such as confidentiality requirements or sales targets.


By obtaining an authority letter, companies can demonstrate their legitimacy and authorization to deal with specific products or services, which can help build trust and credibility with stakeholders.

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Amazon Non-Enforcement of Exclusive Distribution Policy

1. What This Policy Means
Amazon operates an open marketplace. This means Amazon does NOT enforce or honor exclusive distribution agreements between brands, distributors, wholesalers, or sellers. Even if a brand grants “exclusive online selling rights,” Amazon will not block other sellers from selling the same genuine product.

2. Why Amazon Does Not Enforce Exclusivity
– Marketplace neutrality: Amazon cannot regulate commercial contracts between private parties.
– Competition law compliance: Enforcing exclusivity may violate anti‑competition principles.
– Brand responsibility: Brands—not Amazon—must implement tools to control online selling.

3. What Amazon Will Enforce
Amazon enforces:
– Counterfeit product violations
– Trademark and copyright infringement
– Chain-of-invoice authenticity
– Safety and compliance requirements
– Listing accuracy and genuineness
It does NOT enforce exclusive distribution agreements.

4. Who Can Legally Sell on Amazon
Any seller with:
– A valid GST invoice
– Genuine product
– Compliance with Amazon policies
…can sell legally on Amazon, even if exclusivity agreements exist offline.

5. How Brands Can Control Sellers
Brands can enforce online control through:
A. Amazon Brand Registry – listing ownership, content control, IP protection
B. Transparency Program – unique QR codes blocking unauthorized sellers
C. Brand Gating – Amazon restricts ASIN to pre‑approved sellers
D. GS1 Barcodes & controlled supply chain

6. Impact on Distributors / Sellers
Offline exclusive distributor appointments do NOT translate to online exclusivity. Online control requires brand action using Amazon tools.

7. Seller Protection Tips
– Obtain authorized seller letter
– Maintain complete chain of invoices
– Sell only genuine, compliant products
– Create bundles or exclusive SKUs
– Encourage brand to join Brand Registry & Transparency

8. Summary
Amazon does NOT enforce exclusive distributor agreements. Only genuine products, GST invoices, and Amazon policy compliance matter. Online exclusivity is controlled by the BRAND, not Amazon.