Stricter Brand Approval Policies
Challenge:
Brands are becoming more protective of their products, and Amazon’s brand gating process is more selective than before. Many popular brands now require not just invoices but also direct Letters of Authorization (LOA).
Solution:
Build relationships with smaller or mid-sized brands first — easier approvals.
Attend trade shows (e.g., ASD Market Week, White Label Expo) to meet brand owners directly.
Maintain a professional website and portfolio to show brands you are a legitimate retailer.
Increased Amazon Invoice Scrutiny
Challenge:
Amazon now verifies invoices more aggressively. They contact suppliers to confirm you’re an authorized reseller. If they can’t confirm, your request is denied.
Solution:
Only purchase from brand-authorized distributors.
Ensure invoices have your full legal business name, address, and contact details exactly as in Seller Central.
Avoid “online-only” wholesalers without brand relationships — Amazon often rejects them.
Buy Box Competition & Price Wars
Challenge:
More sellers mean tighter margins. Aggressive repricing can destroy profitability.
Solution:
Focus on listings with consistent buy box rotation rather than those dominated by 1–2 sellers.
Use repricing software with minimum profit margin safeguards.
Negotiate for exclusive SKUs or bundle products to create unique listings.
Rising Inventory & Logistics Costs
Challenge:
2025 has seen increases in FBA storage fees, long-term storage penalties, and international shipping costs.
Solution:
Ship smaller, more frequent replenishment batches to Amazon FBA.
Use 3PL warehouses near Amazon FCs for faster restocking without paying high storage fees.
Track sell-through rates to avoid overstocking slow movers.
Intellectual Property (IP) Complaints
Challenge:
Brands are filing more IP claims to control unauthorized sellers, which can suspend your listing or account.
Solution:
Keep LOAs and brand approval documentation for every gated product you sell.
Respond to IP claims within 48 hours with proof of authorization.
Avoid selling products from brands known for aggressive IP enforcement unless you have direct approval.
“In 2025, selling wholesale on Amazon is more than just buying in bulk. You need to follow the rules, choose products wisely, and work closely with trusted suppliers. Do this, and you’ll not only handle challenges — you’ll grow your business faster.”