The Hidden Costs of Unauthorized Amazon Resellers (and How to Stop Them)

The battle for sales on the Amazon marketplace has come down to buy box ownership. 83% of sales on Amazon come from the seller who holds the Buy Box—the prominent “Add to Cart” and “Buy Now” buttons on a product’s detail page. Although multiple sellers may offer the same product, Amazon only awards the Buy Box to one seller at a time based on several factors. These include competitive pricing (with shipping), fulfillment method (such as FBA), seller performance metrics, available inventory, delivery speed, customer feedback, seller history, order volume, and shopper’s location. When more than one seller meets these criteria, Amazon may rotate the Buy Box among them, giving each a share of visibility and sales.

It’s hard to say whether Jeff Bezos could have fully envisioned the intense scramble for sales on the platform he created. Amazon’s rise was nothing short of masterful—starting with books, then methodically expanding into virtually every category to fulfill the vision of the “everything store.” In doing so, Amazon didn’t just capture a massive consumer base; it reshaped the digital shelf, set new expectations for convenience, and built the infrastructure that powers modern commerce. It was never just about selling more—it was about becoming essential at every stage of the customer journey, from discovery to doorstep.

Visual representation of the sales volume difference by owning the buy box on Amazon.

The Start of the Problem

The challenge for brands is that they never intended for all of their products to be sold through the “Everything Store.” For decades, manufacturers developed thoughtful product segmentation strategies—designed to engage consumers in specific environments and deliver a curated brand experience. This often involved deliberate, long-term partnerships with trusted retailers and a repeatable, relatively predictable path to profitability.

Amazon, on the other hand, prioritized having the widest assortment at the lowest possible prices. To achieve this, it opened its marketplace to countless sellers—many of whom source their inventory through those same retail and distribution channels. The issue for brands is that once multiple sellers list the same product on the same platform, it creates constant downward pressure on pricing. And in a marketplace where 83% of sales go to the seller who owns the Buy Box, capturing that visibility means offering the lowest competitive price—often at the expense of margin and brand value.

Unauthorized Amazon Resellers are willing to work on smaller margins.

One of the most damaging realities of unauthorized Amazon resellers is their willingness to operate on razor-thin—or even non-existent—margins. Unlike your trusted retail partners, these sellers have no stake in your long-term brand positioning, channel strategy, or customer experience. Their only goal is to win the Buy Box, and they’ll often underprice everyone else to do it.

This margin erosion creates a ripple effect. Authorized sellers can’t compete on price without violating MAP policies or sacrificing their own profitability, so they either push back on your brand or walk away entirely. That’s when the real damage begins—your premium positioning starts to slip, customer expectations shift, and your carefully designed value proposition starts to feel like just another discounted listing.

Over time, what was once a strategic, well-protected brand ecosystem becomes a race to the bottom fueled by price-driven resellers you never intended to represent you. And the worst part? Most consumers don’t know the difference between an authorized retailer and a rogue third-party seller. Several consumers don't pay attention to who own's the buy box. But they do notice when quality, service, or consistency fades—taking your brand reputation with it.

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We specialize in the analysis of the health and compliance of e-commerce product listings, including source of product identification allowing for mass policy enforcement to deliver channel compliance. This information clearly and consistently informs our clients of overall and style level health to make real time adjustments to maximize profitability. We are passionate about protecting brand health and seeing strong brands thrive in today's marketplace.

How Serious are you taking your MAP Policy?

You know, you can slap a MAP policy on your website and call it a day, but that doesn’t mean it’s doing anything. Let’s say I walk into a distributor’s office and say, ‘Hey, I’ve got a great brand protection strategy for you.’ First thing he says is, ‘Okay, but are you actually enforcing it?’ And I say, ‘Well… not really. It’s more of a suggested policy. We kind of hope everyone follows it.’

Then he says, ‘So anyone can sell your product anywhere, at any price, and you won’t stop them?’ And I say, ‘Well yeah, but we have a MAP policy. It’s in a PDF somewhere.’

And that’s when he says, ‘Look, if all you’ve got is a policy with no teeth, you’re not protecting your brand—you’re just hoping for the best.’ So sure, I could write you a fancy policy, post it online, and pretend it’s doing something. But if you really want to protect your margins and your brand, you need a policy with real boundaries, real consequences, and a strategy that backs it up.

Why you need a MAP Policy

MAP or Minimum Advertised Price policies are important because they communicate a products value across the marketplace and provides retailers with some confidence that the brand is going to protect their profitability of the investment in the brands products. As I wrote in an article titled "Why a MAP Policy is necessary and the risk it may create," a strong MAP policy can help protect your brand and keep your reseller relationships healthy by preventing price erosion.

Why you need a Distribution Policy

In the U.S., the MAP concept is well known because of how the policies are communicated and the expectation of protected profitability. But the execution of a MAP policy is trickier. Every MAP policy must be backed by a well thought out Distribution Policy. A strong distribution agreement is foundational. It sets the rules for where and how products are sold, supports MAP enforcement, and gives brands the clarity and control they need to protect long-term profitability.

When policies are not enforced consistently, it will backfire, fuel gray market issues and put strain on your authorized partners.

How to remove Unauthorized Amazon Sellers and Drive Channel Compliance.

While unauthorized Amazon sellers don't have signed agreements—and are typically not bound by a MAP policy—the foundation for action starts with having clear, enforceable policies in place. Your brand’s sales policies are more than legal documents; they’re a formal declaration of how your products are expected to flow through the market and who is authorized to sell them. Without that clarity, enforcement efforts fall flat.

Once those policies are established, the real work begins: setting up a consistent process to monitor, assess, and respond to marketplace activity. That means sorting through hundreds—or even thousands—of listings across eCommerce platforms to determine which sellers are compliant and which are causing harm. If a listing is disruptive, brands must diagnose why: Is it pricing? Listing Venue? Lack of product warranty? From there, it’s about aligning the issue with the appropriate policy or deploying additional mitigation tools.

Channel Compliance requires a thought-out process... and vigilance.

The encouraging truth is this: no listing is beyond review, and no threat is immune to strategy. With the right combination of policy, and process, brands can stop unauthorized activity. Every listing presents an opportunity—not just for correction, but for rebuilding the control, trust, and value that define a healthy brand. Decide how your brand wants its products sold, set policies communicating that vision, monitor eCommerce listings, analyze the data, enforce your policies.

Counter Diversion is a boutique SaaS company - we don't have marketing, and we don't use high-pressure sales tactics. Our goal is to have solid, honest conversations about the issues at hand and then either recommend our service or another one that is a better fit for your needs. If you'd like to engage in that type of discussion, schedule a consultation here.