Is it ok if the supplier doesn't allow selling his goods on ebay, amazon?

[stranger]

Hi,
I'm gonna start a new venture - a new online store. There are a few suppliers whom offers sound interesting enough for me. One of these ones has a bit better products than the others. However, that company started in 2012, and they don't allow to sell their products on ebay, amazon and a few other market places. They only do allow their products to be sold on personal business websites. The venture will cost me 500 bucks to start. The 500 bucks are almost all my cash.

 

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[Tom.V]

Sounds fishy to me. Not only does that destroy the reach and potential scale of your business, but it also makes me wonder why? Are the products illegal? Are they preventing you from competing with themselves on those marketplaces? Before going all in, do some more homework.

Tread carefully.

 

[1step]

They are almost certainly preventing competition on amazon. I personallywouldnt do the deal. There are far to many other products you can sell.

I also wouldnt invest all your money just for the opportunity to sell someone elses product. I assume that is what you are saying.

I wouldnt do it

 

[stranger]

They say it's because that market is handled in-house to protect their products in the market place.

Yes, that sort of products is on amazon.

 

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[Tiger]

They don't want to fight with you over a sales channel they already dominate and they don't have to since they own the product you're trying to sell. They also don't want their product commoditized with a race to the bottom in price.

The good news is that you can compete since there shouldn't be any other outside companies selling on those marketplaces either. Now you can focus on your businesses core market position instead of worrying about being the absolute lowest price.

As long as they will sell you the product at enough of discount where you can sell it at their Amazon price and still make a profit.

 

[stranger]

I've decided i wouldn't jump in this marketing niche. I was bad surprised when i found a list with over 150 different manufacturers who work in that market. WOW...