Our attorneys are contacted almost daily by Amazon sellers who've suffered some adverse consequences on marketplaces such as Amazon and Walmart. While these can be negative situations by the platforms themselves, a more serious issue occurs when third parties steal your market share and affect your revenue. Selling on Amazon has its fair share of challenges, but few are as frustrating as unauthorized sellers and counterfeit products. They drive down your prices, confuse customers, and can seriously damage a brand's reputation. Worse, they make buyers question whether they're getting the real thing, which may cause serious repercussions like buying substandard products or choosing not to buy at all.
The good news is that you don't have to accept the outcome. There are steps you can take to fight back. With the right legal protections and smart strategies, you can keep control of your brand, protect your pricing, and ensure customers get exactly what they paid for.
The Challenge of Grey Market Sellers
Grey market sellers, also known as unauthorized resellers, obtain authentic products through unofficial channels. They might source them from leaked distribution networks, liquidation sales, or international price differences. Grey market issues are much more challenging because the seller must conduct due diligence to control their distribution network and have enforcement rights.
Where does the real problem lie? These sellers can throw off your carefully planned pricing, create tension with authorized distributors, and weaken your brand's market position. If left unchecked, they don't just cut into profits—they can unravel your entire distribution strategy.
Counterfeit Goods: A Serious Threat to Your Brand
Counterfeit products are another bigger headache to your business. These knockoffs trick customers into buying low-quality goods that look like the real thing but don't meet your standards. When buyers unknowingly receive a fake, they are more likely to leave bad reviews, leading to losing trust in your brand and never returning. Beyond lost sales, counterfeits can lead to legal headaches, liability issues, and long-term damage to your reputation. Spotting and shutting them down fast is, therefore, very important. Counterfeit and grey market goods have real-world consequences for businesses in the consumer packaged goods market. For every gray market or counterfeit goods sold, you are likely losing a sale. Your return on investment from vigorous brand enforcement is real.
Amazon's Brand Registry: Effective but Insufficient
Amazon's Brand Registry gives sellers some tools to fight back, but this is far from perfect. Unauthorized resellers often rely on the first sale doctrine to justify their presence, making them difficult to remove. Worse, many sellers know how to game the system by using multiple seller accounts, frequently relisting, and tweaking product descriptions to stay under the radar.
Relying solely on Amazon's internal tools often becomes a frustrating cycle; takedowns happen, but the problem keeps returning. This cycle fails to end because without tackling the root cause, enforcement efforts become repetitive and ineffective. Effective brand protection requires combining Brand Registry tools with clearly articulated reseller policies, strategic use of the Material Difference Doctrine, proactive legal actions, and thorough evidence-collection methods like test buys. Implementing these combined approaches ensures more comprehensive, lasting outcomes in curbing these challenges.
Why It Matters
Why should brands stay vigilant about unauthorized sellers and counterfeit goods? Because the risks go far beyond lost sales. These unauthorized listings can quickly undermine your pricing strategy, damage customer trust, and expose you to legal trouble. Understanding the full impact is the first step in building an effective enforcement plan. There are so many reasons why brand enforcement should be started early rather than waiting. Your trademarks are weakened by infringement; your sales are affected by competing goods that should not be in the market, and the more you look the other way, the more likely counterfeiters will target your business; your small problem now can become a risk the company problem later.
Revenue Loss
Grey market sellers can shake up your pricing strategy by selling products at much lower prices, pulling customers away from your trusted retailers. This creates a price war, where even your authorized sellers feel forced to drop their prices just to keep up. The result? Your profits shrink, and your brand loses control over its pricing.
For companies that rely on steady pricing and exclusivity, these unauthorized discounts can add up fast. Over time, they can lead to millions in lost sales, frustrated retail partners, and a weaker brand presence in the market.
Brand Dilution
Your brand is more than just a product—it's an experience built on trust, quality, and reliability. When unauthorized sellers enter the mix, this experience gets watered down. These sellers often do not offer proper warranties, customer support, or quality control, leaving buyers frustrated when things go wrong. Confused, the customers do not blame the rogue sellers but you, as they cannot differentiate the fake from the real. Over time, this erodes your reputation as a brand, making it harder to justify premium pricing or retain loyal customers.
Legal & Compliance Risks
Turning a blind eye to unauthorized sellers isn't just a short-term risk—it can have lasting consequences for your brand. If grey market and counterfeit sales go unchecked, enforcing your intellectual property rights later may become much more complicated. Worse, counterfeit goods can be unsafe or fail to meet industry regulations, putting your company at risk for lawsuits and compliance issues.
Taking action early isn't just about stopping bad actors—it's about protecting your brand's legal standing and avoiding costly legal battles down the road. The sooner you tackle the problem, the stronger your position will be. The legal fees that you spend now should provide a great return on investment in the short term and in the long term.
Key Things Every Brand Needs to Know About Enforcement
Amazon offers some tools to help brands protect themselves, but those alone often aren't enough to stop unauthorized sellers. Real brand protection requires a deeper understanding of the legal strategies and enforcement tactics that actually work. Here's what every brand should have in their toolkit to keep unauthorized resellers and counterfeiters in check.
Material Difference Doctrine: A Powerful Enforcement Tool
Even when a grey market seller offers authentic products, they may lack key elements like warranty coverage, customer support, or quality assurance. This is where the Material Difference Doctrine comes into play. If a product is missing these critical features, it can legally be considered "non-genuine." This distinction strengthens your ability to challenge unauthorized listings on Amazon and take legal action against sellers who misrepresent their products as identical to those sold through authorized channels.
The Importance of a Strong Reseller Policy
A well-drafted reseller policy is your first line of defense. Clear and enforceable distribution agreements help define who can sell your products and under what conditions. More importantly, they provide a contractual basis for taking action against unauthorized sellers. Without a strong reseller policy in place, brands often find themselves in a weaker position when trying to enforce their rights on Amazon or through legal channels.
Combining Legal Threats with Amazon Enforcement
The most effective enforcement strategies involve a combination of legal and platform-based actions. Sending a cease-and-desist letter or a formal demand notice before filing an Amazon takedown request can increase the likelihood of success. Additionally, copyright claims—especially for unauthorized use of product images and branding—can serve as another valuable tool in getting infringing listings removed. A proactive, multi-layered approach is far more effective than relying on Amazon's internal enforcement alone.
Test Buys and Evidence Collection: Building a Strong Case
One of the most critical steps in enforcement is gathering indisputable evidence. Conducting test buys allows brands to collect key proof, such as order receipts, tracking numbers, and side-by-side comparisons that highlight differences in packaging, warranties, or quality. Screenshots of unauthorized listings, combined with detailed documentation, provide the necessary support for filing takedown requests and pursuing legal claims. The stronger your evidence, the better positioned you are to remove unauthorized sellers and protect your brand's integrity.
Strategies for Solving the Problem
Protecting your brand on Amazon requires a proactive, strategic approach. Unauthorized sellers and counterfeiters won't disappear on their own, and relying solely on Amazon's enforcement mechanisms often falls short. To effectively regain control, brands must implement a structured, multi-step enforcement strategy. The following steps outline a proven method to identify, address, and eliminate unauthorized sellers while protecting your brand's reputation and revenue. We don't want to make it sound like enforcement is cookie-cutter. Every single situation requires a deep legal and strategical analysis to figure out what is the best approach for your situation, your brand, and to ensure return on investment.
In some cases, you will not want to engage in one of the steps below because it could affect your ability to achieve greater enforcement. We encourage you to speak with an attorney specializing in Amazon and platform enforcement before engaging in any particular course of action. It's more about doing it right than jumping through hoops.
Step 1: Monitor and Identify Unauthorized Sellers
Proactive monitoring is the foundation of enforcement. Regularly check for unauthorized listings using tools like Amazon's Brand Registry reports, third-party monitoring services, or even manual test buys. Keeping a detailed enforcement tracker helps document seller activity, actions taken, and outcomes, ensuring a structured approach to brand protection.
Step 2: Send an Educational Notice to Unauthorized Sellers
A first step in enforcement is outreach. Sending an educational notice informs unauthorized sellers that they are violating brand policies and provides an opportunity to remove their listings voluntarily. Many sellers, especially those unaware of policy violations, will comply without further escalation.
Step 3: Issue a Formal Demand for Compliance
If initial notices are ignored, escalate with a formal demand letter. This communication should outline legal violations, such as trademark infringement or brand dilution, and set a firm deadline for compliance. A well-crafted demand letter demonstrates the seriousness of enforcement efforts and increases the likelihood of seller cooperation.
Step 4: File a Brand Registry Takedown with Supporting Evidence
Still no action? File a takedown request through Amazon's Brand Registry. Back it up with clear evidence—trademark paperwork, proof of material differences, unauthorized use of copyrighted content, whatever applies. The more detailed and thorough you are, the better your chances Amazon will take the listing down.
Step 5: Escalate to Cease and Desist and Potential Legal Action
For persistent offenders, a cease-and-desist letter is necessary. This notice should clearly state the legal consequences of continued noncompliance. In extreme cases, brands may need to escalate further—pursuing litigation, seeking court injunctions, or working with customs authorities to intercept counterfeit shipments. A firm and consistent enforcement approach discourages unauthorized sellers from persisting in the marketplace.
The Business Case for Ongoing Enforcement
Stopping unauthorized sellers isn't something you do once and forget. It's something brands have to stay on top of, or the problem just keeps coming back. Every time a grey market seller slips in, it eats away at your revenue and chips away at your customers' trust. And if you let it slide for too long, it can open the door to even bigger headaches—like legal issues and serious financial losses.
Keeping enforcement consistent helps you stay in control. It protects your pricing, keeps your trusted sellers happy, and makes sure customers get what they paid for—your product, not a fake or gray-market version.
ROI on Enforcement
Think of enforcement not as an expense, but as an investment. Every unauthorized seller you remove means fewer lost sales, better pricing control, and a stronger grip on your market. The upfront cost pays for itself over time—whether through recovered revenue, stronger brand value, or fewer legal headaches down the line.
Preserving Brand Integrity
Consistent enforcement ensures that customers receive products backed by warranties, customer support, and quality assurance. When consumers trust that they are buying from authorized sellers, they are more likely to remain loyal, leave positive reviews, and recommend your brand to others. Maintaining this integrity is essential to long-term growth and reputation management.
Building a Sustainable Enforcement Program
Cracking down on unauthorized sellers isn't something you can do once and call it done. It's an ongoing job. Setting up a regular schedule—maybe every month or every quarter—keeps you ahead of the problem before it spirals. It also pays to get everyone on the same page. When your legal, sales, and marketing teams work together, you're not just reacting—you're building a stronger, more coordinated strategy that keeps both your revenue and your brand safe.
Final Thoughts
Fighting grey market and counterfeit sellers on Amazon is an ongoing challenge that requires persistence and strategy. By understanding the scope of the problem, recognizing why it matters, and executing a structured enforcement plan, brands can take control of their marketplace presence. While the battle may feel never-ending, a strong enforcement strategy, backed by legal expertise and proactive monitoring, can tip the scales in your favor and keep your brand protected in the long run.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
