Happy Hour, Sept. 18, 2024: Amazon Reimbursement Changes, Brand Protection, and Product Compliance

Join Lesley Hensell and Kelly Johnston for another episode of Ask Us Anything!

Listen in for practical insights and expert advice as they tackle the toughest problems Amazon sellers face, including strategies to revive old Amazon seller accounts!

Get the tools you need to overcome challenges and elevate your Amazon business to new heights!

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Chapters

• 10:08 Amazon’s shift to automatic reimbursements and the reduction of the request window to 60 days
• 13:37 Is There a Clear Policy on Bundling from Amazon?
• 22:57 What to watch out for at the Canton Fair when Innovating and Iterating White-Label Products?
• 28:08 Reinstating Seller Fulfillment After Dropship Violation
• 33:58 Creating a New Brand
• 43:22 Considerations for Starting Private-Label Skincare Products
• 50:38 Thoughts on BadBuyers.com
• 1:00:17 Is it time to revive that old suspended Amazon seller account?
• 1:08:35 Newsletter

Transcript

Lesley Hensell [00:00:25] Hello, everybody, and welcome to the Amazon seller Happy Hour. I'm Lesley Hensell, co-founder of Riverbend Consulting, and I am here with the brilliant and beautiful Kelly Johnson. Hello, Kelly.  

Kelly Johnston [00:00:40] Hello. 

Lesley Hensell [00:00:42] So Kelly, Kelly is the brains of the outfit and we deeply appreciate her. And that's where we have her here. We are so glad that you came today. So if you haven't watched our podcast before or listen, however you indulge. We talk about Amazon seller problems and challenges and sometimes a little bit of Walmart thrown in too, because our team focuses mainly on the ugly unhappy side of Amazon like what to do if your account is suspended, if your ASINs are suspended or whatever it might be. So. That is what we do every day. It's a difficult use of our time, but a good one. And we love working with small business clients. So Kelly. 

Kelly Johnston [00:01:30] Ma'am? Yes, ma'am. 

Lesley Hensell [00:01:32] So I wanted to start with something kind of fun. 

Kelly Johnston [00:01:35] Well, I like fun. 

Lesley Hensell [00:01:37] Yeah. So, yeah, so e-commerce has has its challenges. And one thing is I have really one thing I've really enjoyed over the last year is watching Walmart do some really crazy stuff to try and catch up with Amazon and try and grow. And they have actually grown successfully in many cases. They have been growing faster than than Amazon has, actually. Which, you know, is reasonable because they're a lot smaller than Amazon. So of course, they're they're growing faster than Amazon. But our friends at Walmart do some really interesting things, such as they will ship things that make no sense to ship. So I can place a grocery order on Walmart and they're out of the tinfoil I was going to buy. And so they say, we'll ship it to you. And they do literally like the next day. And sometimes I will get whatever it is on Walmart before I get the groceries that I ordered on Walmart. 

Lesley Hensell [00:02:48] So today. So recently I have turned into an Heb shopper. And if you live in or near Texas, you know that Heb is like the best grocery store that ever existed. But Walmart is still faster and cheaper. And so my my tiny child wanted to make some salsa. And I noticed we were out of milk because of my tiny child and bananas because of my tiny child. So I thought, you know, I'll get milk, bananas, a few other necessities, and I will get the stuff for him to make salsa, and I'll have that delivered to my house. And there there grocery deliveries, like super quick, Easy. It's really good. It works. My store is really great. The only problem I have is sometimes we have these weird problems with substitutions. And I'm sure all of you have experienced this where, like, you order the thing and they say it's not available. So today I get my order and I always have to check it because sometimes the substitutions are ridiculous. Sometimes they say that they fulfilled something and they didn't. You just have to make sure. And especially since we do buy a whole lot of food at our house for my tiny child, you know, I do have to double check these things. So I'm going through my grocery order and I promise there's a point to all of this, Sellers, because this is just such an e-commerce thing. 

Kelly Johnston [00:04:14] Stay with her. 

Lesley Hensell [00:04:15] Yeah. So I'm going through my order and I'm like, wait a minute, what the heck? So I get out my phone and I'm going through and I got everything I was supposed to. But the reason I was confused is I wondered if they'd accidentally picked the wrong item because look what I got today. 

Kelly Johnston [00:04:34] Oh no. 

Lesley Hensell [00:04:34] I did not order this. This bag of red onions. I also did not order this second bag of red onions. And I also did not order the third bag. 

Kelly Johnston [00:04:46] Free. 

Lesley Hensell [00:04:49] So y'all, if you're listening and you can't see us, each of these is like a 3 or 4 pound bag of red onions. So I have like 12 pounds of red onions. That I did not order. 

Lesley Hensell [00:05:00] And and so then then I have to wonder, like the person picking the order did something, tell them I should go back and look because I don't think I've ever picked an order with three giant bags of red onions unless it looked like it was going went to a soup kitchen or. 

Kelly Johnston [00:05:17]  I just. I just have one word to describe or to to comment on this particular subject and your girl laugh, because if you don't already know what I'm about to say, you will laugh Hamageddon. 

Lesley Hensell [00:05:30] I know you are going to say, Ham. 

Kelly Johnston [00:05:33] We had a similar thing in my house Christmas time where instead of getting a whole cooked ham, the grocery person decided that because that was not available, that an equivalent amount of deli sliced ham would be appropriate, which added over $400 to our grocery bill. That was very fun. And I don't think we're going to ever eat ham again at Christmas time as a result. However, the substitution thing is real. I mean, it's a pain. My other favorite that we've gotten is we asked for cilantro and got parsley. That did not make for good salsa. Not not that we I'm not kidding. We didn't actually use it, but boy, it. Yeah. 

Lesley Hensell [00:06:13] It's not a Mexican food lover for that one. 

Kelly Johnston [00:06:16] Clearly not. But that's a lot of red onions. You're going to have to make a lot of salsa to make that worthwhile.

Lesley Hensell [00:06:21] I don't even use red onions for myself. No, I use yellow onions for myself. I did not order a single onion. There was no onion on the order. And I was. I thought. I thought, what did I. I know. I thought, what did I order multiples of that? Maybe the pieces were mixed up in their system or something. But I got everything on my order because I ordered three jalapeno peppers. So I thought, well, maybe. No, I got my jalapeno peppers. I got everything. 

Kelly Johnston [00:06:48] Maybe it's somebody else's, part of somebody else's order. 

Lesley Hensell [00:06:51] But it. But I thought that too. But it was one back to backs of red onions were with another piece of produce. And then one bag of red onions was with a canned good. So they weren't even like it wasn't a separate three bag. A bag with three bags are red onions. It's a crazy thing. See, Kelly and I. You can tell what we do all day that we do operational stuff because we're sitting here trying to figure out how this happened. Because I have gotten an extra bag of groceries in my groceries before, like with someone else had eggs and a and a loaf of bread or something, but it was a bread that I would never order. It's not the kind I eat. And so I'm like, What is this? I didn't get eggs either, you know, they just picked it up. I gave this to you, oopsie. No, this is just as though I. I can't. And I looked. I looked and looked like. Did I accidentally orders. No, I didn't. So that's some crazy. It made me laugh. I actually, Kelly told my dear husband the story of Hamageddon. Because we were looking through trying to figure out how we got all these onions. I do not know what to do with 12 pounds of red onions. I thought maybe. Maybe I could make onion chutney. It's a British thing. It's chutney made out of onions. Can you make French onion soup with red onions? I don't know.

Kelly Johnston [00:08:17] That I don't know, but I. Well, I mean, and that's the thing. It's like at least with our $417.86 of ham. I have never seen anybody go from. Okay to not okay. As quickly as that caused my partner to have an aneurysm. 

Lesley Hensell [00:08:39] I remember Kelly saying that Sarah refused to order groceries online for a really long time after that because she was so afraid. She get some, like, random thing in her grocery order. 

Kelly Johnston [00:08:51] But what we were able to do, at least in that case, is give it away. Because the only, the only upside of this was that instead of like the whole, you know, half ham or whatever it is that you see around the holidays, that's precooked. They had put it in multiple, you know, little bags. So we sort of like given ham, we're slinging ham to the neighbors. They were coming by and picking up ham so we didn't have to, you know, try to eat at all. We froze some of it, but most of it we gave away. You are not going to give away 12 onions, especially red ones, because those are nasty. 

Lesley Hensell [00:09:25] 12 pounds of onions. 

Kelly Johnston [00:09:26] 12 pounds. Yeah, those are there and they're big. They look like they're good size. 

Lesley Hensell [00:09:28] I mean, how much guacamole would I have to make? 

Kelly Johnston [00:09:31] Oh my gosh. I can't even imagine. Yeah, I think I think you're better off maybe looking at a chutney recipe or two and maybe seeing if any neighbors need them or, you know, use them as weapons because they're really good for that. That is nuts. Three bags, Lesley. Good gravy. 

Lesley Hensell [00:09:51] You're so funny. Okay, so the reason that I brought that up, other than it's just hilarious because who the heck gets 12 pounds of red onions in their order? It makes no sense at all. That actually made me think of Amazon because everything makes me think of Amazon because that's my life. So Amazon. But the reason it made me think of Amazon is I want to remind everyone that Amazon is going to magically fix all of your reimbursements and refunds issues in just a month, a little over a month. So Amazon is telling everyone that you don't need to use a reimbursement to refund service any more because we are going to automatically reimburse you for lost and damaged inventory. So you don't need to worry at all. And the reason I'm bringing this up is, along with the alleged carrot that they're just going to do it for you is the stick that the amount of time you have to ask to be reimbursed is dropping from 18 months to 60 days because there's nothing like dropping by it. I mean, good Lord, what a decrease all at once. So if you have never had anyone file for reimbursements on your account, you need to do it today. 

Lesley Hensell [00:11:18] Please give us a call or go to Riverbend consulting.com. Fill out the form so we can take a look at your account immediately because you won't be able to go back for 18 months. We can do it now, but in another month we're not going to be able to a little more than a month. We're not going to be able to do that anymore. We can only go back to 60 days. Also, just keep in mind that Amazon has always told you that they reimburse you for lost and damaged inventory. They've always said they do that automatically. So them rolling this out and saying, now we're going to do this automatically. They're saying, what? Because it's never been legal, moral or ethical for them to not reimburse you for inventory that they lost or damaged their essentially your 3PL. Yep. So they're required to do so. Yeah. Just have to throw that out there. And if you if you need to question you know well is she just trying to get my business. No, because I'll refer you to other people who will do your reimbursements happily so you don't get screwed by Amazon. But, you know, just remember these three bags of onions. That is how your inventory gets treated. They'll just send it to people, you know, they that fulfillment, all kinds of problems. You shouldn't take any look at it. 

Kelly Johnston [00:12:34] So it's a new rule. I like this. We could call it the three bag of onions rule. Prioritize your business. Don't let somebody tell you how to do it for you. This is ridiculous. I mean, you can't control the time frame change, which I don't know how you go from 18 months to 60 days and not just, wow, I have I have no words for that. I think that's just garbage. But yeah, don't don't sleep on this. I think Lesley's very correct. And she's right. I mean, yeah, we do reimbursements, but we have a lot of people that we trust that would refer you to. Do not let Amazon take this money from you that you are owed. Do it. 

Lesley Hensell [00:13:14] Absolutely. Okay. We have some super fantastic questions today, as well as a topic we want to discuss with you that does not involve onions or making salsa. 

Kelly Johnston [00:13:27] Weaponry or ham. 

Lesley Hensell [00:13:32] So our first question today, which I really love, and we have duly Tonys, we have a question from Tony S that came in on the chat that we'll get to right after this question might be distinct because this is also. Tony. Yes. Who emails with the question saying is there any clear policy from Amazon on bundling? Then there are sub-questions. So I just want to start because Kelly is our bundling girl on this, but I want to start by answering the umbrella question. Is there a clear policy for Amazon on bundling? And the answer to that is no. So now we're going to go to the sub-questions when it comes to either other brands or simply taking generic stuck items and selling it under your own brand. I don't want to get my account suspended. I want to make sure I have the correct information. I was interested in making gift packs of different accessories. Thank you for your question, Tony. 

Kelly Johnston [00:14:32] Yes, absolutely. And it's so incredibly timely and perhaps perhaps because you have also seen the sturm und drang on the seller forums about the insane just recently started happening enforcement around bundling that has been like, dormant forever. I have feelings about this, so just get ready to take a little journey with me. Lesley's right. There is no clear policy on bundling. There are policies, they aren't clear and they are also generally not enforced. What is in Seller Central help about bundling is pretty much useless. And it's been that way since forever, which is really terrible. So the big, big thing that we're seeing right now. Our sellers who have been doing bundles for years and in some cases have like really established relationships with brands. They've got ways for, you know, an item or two in the bundle. But where they're having some issues is how they're titling the brand that they're putting the bundle under. And or the way that they're organizing what is the most prominent item? And that is because Amazon's policies are so incredibly bad. 

Kelly Johnston [00:15:58] I'm not against bundling in concept. In fact, I think that it's a really great value add to the site for a couple of reasons. Number one, it increases selection. So Amazon likes that. But if it's not done well, and if it's not done with an eye to actually increase value for the consumer, it's not a value add to the platform. It just dilutes, dilutes offerings. And it hurts other sellers too, because people are not going to buy when they're confronted with thousands of these options that all kind of look the same and don't really seem to add anything special. So if you're going to do bundles, my advice is to be very, very careful in how you do that and try to comply with the letter of the law on the policy, which is again, geared mainly towards the most valuable item, needs to be the centerpiece and it needs to be the brand. But that's not how they're enforcing it. And as I think we discuss this, Lesley, tell me, am I crazy? But didn't we talk about maybe 2 or 3 happy hours ago how they seem to be wanting LOAs aka letter of authorizations for every brand in the bundle. 

Lesley Hensell [00:17:05] We did talk about that. But and it's absolutely crazy. And it's also an even enforcement know because there are some bundles where they're requesting that in some that they're not. 

Kelly Johnston [00:17:14] I will say, I will say in the last couple of weeks, we've had, I would say, a two fold increase in inquiries about this type of issue. All of the account level, which is bad for for our clients, that that has not been an ask that I have seen. They have asked for always, but not for every single thing in the brands or in the bundle. So that's good. I hope. I hope it means that they realize that I was dumb. But yeah, there's there's a lot of very dumb there's a lot of issues with this. And if you are not currently listing bundles, now might not be the time to try to experiment in that particular area unless you are so incredibly sure that you have everything locked down and as compliant as you can make it if you are currently listing bundles. My advice and plea to you. Audit your catalog. Look at the again, admittedly the very bad policies, but see if you are in any way afoul of those. And if you think you are, you probably need to start making some changes. I don't know where this is going to go. Amazon has done. I don't know. I would say this is like the third or fourth, what I would call catalog driven action. This year they had some emphasis on variations for a while where they were just nailing people left and right, both ason and account level for bad variations. They've had some other issues with brands like you listed. This is generic and it's not a generic or you should have listed this as generic, you know, that kind of thing. And now this. And it's extremely disruptive and their messaging is really inconsistent and it's very difficult to untangle, which is really unfortunate because you don't have time for that right now.

Lesley Hensell [00:19:06] No, nobody does. And to me, what's upsetting is there are different places in the hell that. It says different conflicting stuff. 

Kelly Johnston [00:19:20] Right. Like the candy. Because when we've looked at this before, I felt like the stuff around grocery and candy was actually clearer than, say, other categories where cameras always been fairly clear. But like a lot of these others is they're not. 

Lesley Hensell [00:19:35] Yeah. Yeah. I wish I could give you an easy answer, Tony. As far as getting your account in trouble, what Kelly was just saying, there are some specific category specific bundle rules that you can search up in Amazon Help if they're not super easy to find. So it takes a little bit of work to to get there. So I would definitely go into that specific category that you're interested in because there are categories that have much stricter rules. Kelly mentioned the cameras. And, you know, there are some camera dealers that have been doing bundles on Amazon since the very beginning days of Amazon. And there I would argue they are part of the reason that bundling policies even exist on Amazon because they kind of came up with it. And. Yeah. So in cameras it's very different than in food. 

Lesley Hensell [00:20:44] Where they actually wanted you to put it under your own brand name, whereas other bundles were now they're saying you can't put it under your brand name. So look in, look for it in the help for your particular category and see what you can find there. Yeah. And so another question from Tony is going to Canton Fair. 

Kelly Johnston [00:21:07] Ooh, that's a big deal. 

Lesley Hensell [00:21:09] Yeah. Be careful what you eat. And, you know, I've known so many sellers who've gotten sick on that trip. Yeah. Because they go and they do the street food thing. And the thing is, y'all are. We aren't used to that. And so even if by their standards, they're being like super clean by what we're used to, it's very different. It's so not even a knock on the standards. There's not it. It's just. It's like. It's just like you go to Mexico and drink the water. You know, people in Mexico are fine drinking water. And then we are not fine drinking the water. Just be careful, Tony. And yeah, so, Tony, explicit. I haven't done bundles, and I think now is not a good time to start. I guess. You know, I'm not going to argue with you, Tony. I think that's a good conclusion. 

Kelly Johnston [00:22:03] I honestly, if I had to offer a piece of advice of like, what's the number one thing not to do on Amazon right now, this would be it, especially if you have an established selling account that's doing really well and has really good sales. Do not experiment with this right now. It's not the time. And I agree with Lesley 100%. Some of these categories have very, very different rules. One way that you can help protect yourself is to start exactly where she suggested, which is don't just look at the overarching site bundling policy. Go look at grocery or cameras or clothing or whatever it is that you know, the categories that you're thinking about, because that may change your decision drastically before you even get started. So yeah, I think that's a wise choice. Don't don't go there. What's what's question number two? We've we've dallied a little bit on that first one, but it's valuable one for a lot of people. 

Lesley Hensell [00:22:57] So going to Canton Fair, what should you watch out for, especially when it comes to trying to innovate and iterate white label products? I don't have budget for custom mold right now. Really great question. So in other words, what Tony is asking is he sounds like he wants to do private label because that would be getting a custom mold at a manufacturer, the mold where you can make your product. But that is really expensive. So they will instead a lot of people, a lot of sellers will find an existing product that a manufacturer is making and they will white label it. So you essentially brand it. But it's already got a mold. So, Tony, what's really super important right now is that Amazon is is clamping down on anything that uses generic and no generic allowed and used to. You could get away with putting your brand on the packaging. Yeah. Now that it's got to be on the packaging and on the product. That has been the rule for a while, but they haven't really hammered on it and now they're starting to hammer on it with it being on the product itself. So like if it's a piece of glass, it's actually etched into the piece of glass somewhere or it's got a mark on it or whatever they really, really want for those products to show your brand name and to prove they are not generic. So the first thing that I would do. If say, you know, whatever factories you're talking to, are you willing to. Can you tell me about your customization? How can you get my brand on the product itself and on the packaging and on any manual or inserts that goes into it that the user or how to use this product insert not necessarily a manual, but you know, sometimes it's just this paper. And so you need to find out what they are willing to do because there are places that will tell you that they are going to do that for you and then don't write. You get the samples or God forbid, you send it straight to FDA before you look at it and say and yeah, and it's got your packaging. Maybe sometimes it doesn't even have, you know, it's still just a generic item. So super important that you get. Get them to agree to do a test run, send it to you. You can look at it, see that your actual brand is on absolutely everything so that you can protect yourself with Amazon. Yep. 

Kelly Johnston [00:25:33] I agree with all of that. That is fabulous advice thing. I would say number two. Ask them about how they do their product testing and if they are compliant with all the necessary regulations for your product. Because different ones have really different burdens on them. I always I will always use this as an example because it is so incredibly different than other things. But children's clothing, any toys that could go in the mouth or on the skin, very, very different requirements than toys that are aimed at, you know, teens or whatever. You have to know your regulatory game before you get into that discussion. So certain products have dropped tests. Some have shatter tests. Some have heat tests. Some have electrical and fire tests. Whatever it is you are looking to white label, make sure that that manufacturer knows what they're talking about with their game, that they can produce documents at will to show that those things have been appropriately tested from an accredited lab. And if you are not sure, start Googling. Get that Google engine going because you got to figure out whether or not that lab is actually on the list or if Amazon doesn't like them. Because if that's the case, you're going to have a hard time if you start white labeling. This is where sending direct FDA again could really bite you. I mean, forget about the labeling stuff. Just assume that's done, right. If your product doesn't meet the right qualifications or Amazon suspects it does not. They will absolutely pull your ason and put everything on hold and go. Pony up the docs and you go to your manufacturer and they're like, So sorry, we don't have that. We don't know what that is. Don't do that. That is, I think, the second thing that would bite you about as hard as that first one, because you mentioned that Amazon's cracking down on generics and how they're enforcing it right now, as they're calling it, misbranded. Which is frustrating because that has nothing to do with anything but whatever. That's just the term of the week is misbranded, which is, again, idiotic, but, you know, it's ham again all over again. But that would be my advice for for talking to the manufacturers. And I think those are the two biggest ones. I mean, there's a lot of other little things we could talk about, but those two have the biggest potential to sink a white label brand before they get started.

Lesley Hensell [00:28:03] Excellent answer. Kelly. Thank you for adding that. That's fantastic. 

Kelly Johnston [00:28:06] Fabulous question. 

Lesley Hensell [00:28:08] Yes. Well, I'm super excited because we have another great question that was sent in by email, just like Tony sent his invite email. But then I think that this same person, they have a little bit different YouTube name, but I believe that they are also picking up on YouTube live with this question. So they really want to know the answer. We want to give it to you. Okay. My seller Fulfillment was deactivated for dropship violation two years ago. My account is still active. 

Kelly Johnston [00:28:37] Got it. Is the time then? 

Lesley Hensell [00:28:39] Is it possible to get seller fulfillment reinstated? 

Kelly Johnston [00:28:43] boy. Can I answer this one? 

Lesley Hensell [00:28:46] Please do. 

Kelly Johnston [00:28:47] Yes. But you just said that on the shirt. Yes, but absolutely it is possible. In fact, I would argue this is one of the most solvable problems that we help sellers with. But the key is timing and the root cause of whatever happened that made you lose your your seller fulfillment ability. Right now, we are entering into the cusp of the great Q4 bash that we do every year. Amazon is being flooded with requests from sellers who have been blocked for 2 or 3 years for whatever reason, begging to be let back on the platform just in time for the holidays. And while they will grant some of those sellers reinstatement. The one area that they're really, really reluctant to do that is when it comes to people who had fulfillment issues because. Amazon. I mean, they drilled this into our heads from the time that I started till the time I left. Slow shipping is one of the number one causes of customer dissatisfaction. That leads to negative feedback. That leads to Z claims that leads to chargebacks. So if your situation did not have some sort of extraordinary circumstance around it, like you were blown off the map by a hurricane or, you know, something really extraordinary that was very much out of your control, you're going to have a tough time getting that reinstatement, right. Now, that doesn't mean you can't still ask, but you might be better off waiting until after this holiday season has passed and going into Q one and saying, look, I've been successful in all these ways. Here's what's happened. Give me another chance, because now the pressure's less, Amazon's less. Less likely to go, well, they're just angling to get back on for the holidays and they might fail again and disappoint our buyers. That's what they're thinking about. That's what their worry is. But this is absolutely something that solvable. But your timing is everything when it comes to this type of appeal. Q Late Q3, early Q4 is not the time that I recommend asking for that. I would wait. 

Lesley Hensell [00:31:08] So I totally agree. I you know, this is one of those times where you say, I would really love to sell you some help with this right now. But it would be the wrong thing to do. Instead, I would like to sell you on help with this in February. Like February 1st ish. I would love to sell you help with this because like Kelly said, and I know that for a seller, Q4 is October. I mean, people don't really start buying until the end of October when Amazon is doing those early deals. Now around Halloween, that's when Q4 starts. And so you're thinking of it starting then. But Amazon does lots of this preemptive cleanup stuff, and that has already happened as far as fulfillment. So as of, I would say, mid-September, no one who's been busted for from an issue is getting anything fixed. They're just not going to take the risk. And and unfortunately, even though it's dropped to violation, they're still seeing that as you are not a reliable shipper because you were using someone who wasn't a reliable shipper, even if that was like a retailer that we've all heard of. You know, Amazon believes that it is better than all other retailers at all fulfillment. So they will say they're all unreliable, even though my motorcycle right out of my house. But I'm just saying except for the onions and so. Yeah, yeah. 

Kelly Johnston [00:32:46] Now, I, I have given that advice in person to sellers a number of times, and I will continue to stand by it just because if I were your consultant and you came to me today, I would really, really strongly encourage you to wait until February or at least late January, early February. Either way, just because I know where Amazon's focuses during that October to late December period is, and if that is your main issue, almost more than anything else, they're just going to be like, Nope, we're not taking a chance on that right now. But they will really reevaluate it later. And there's lots of ways to attack this that show your worth as a seller, that show that you're, you know, worthy of that reinstatement, that you have something to bring to the table. But it is much, much harder to sell that when Amazon is extraordinarily focused on their buyers. I mean, they're always focused on their buyers, but no more than than Q4. That is the time. No margin for error. 

Lesley Hensell [00:33:53] Okay. So next up, we got a lot of questions from Carlos. 

Kelly Johnston [00:33:57] Okay. 

Lesley Hensell [00:33:58] Carlos, thank you for joining us over on YouTube. Well, we've got questions. Flooding in. This is amazing. Hello, Carlos. First, can you talk a little bit about creating a new brand? So, Carlos, we look at these things a little differently than, say, a consulting firm who helped you to launch your brand. Like that's their thing. You know, they're the marketing people or whatever. We we look at things a little bit differently. So I'm going to give you the spin that we take on this. So the number one thing you need to do to create a new brand is you need to get a trademark because you have to establish brand registry on Amazon brand registry on Amazon. That's how you protect yourself on Amazon from knockoffs and creep codes and people selling counterfeits on your own listings and all kinds of nasty things that can happen to you. So if I were doing this today, I would actually choose a law firm that is in the Amazon accelerator program. So Amazon has this program that law firms are approved for where specific lawyers can apply for your trademark. And everything goes faster on the Amazon end of it. So even once you've got your provisional trademark from the Patent Office and Trademark Office, Amazon will go ahead and give you more benefits to brand registry than you would receive if you used a random lawyer or did it yourself, which you can do. And it's a lot cheaper. But if you used one of these law firms, it's going to go better and faster for you. So that's the first thing you got to do. Then when you are working with your manufacturer. Same thing we were talking about with Tony earlier. You need a branding guide and your manufacturer needs to be on board with your branding guide. They need to understand how you expect your marks to be put on everything. It needs to be part of all the drawings and it needs to be up to standard, down to the right Pantone colors on the packaging. So all of that needs to be very clear and coherent and needs to match everything on your trademark application. Usually there's the drawing of your symbol, all that jazz. It's all got to match. Then once you have some products, you can go into your Amazon brand registry that you've created with your trademark and you add all of your essence to brand registry. Now, I know that sounds basic and simple and stupid, but there are people out there who have gone to all the trouble to create brand registry and then they don't add the essence to the brand registry. So you're claiming those cases. So when you create a new system on the platforms and you claim them in your brand registry so that they know that that's what belongs to you. And then finally for my $0.02 is and I'm really stealing from Kelly blatantly of what she said earlier, If you're the brand owner, you are responsible for testing and documentation. And this is one of those things where we always try on this podcast to give you the reasoning for why Amazon does things even if we think it's dumb or that they are him tested or whatever. Like earlier today when we talked about the refunds and reimbursement points from 18 month to month, like tell you why they're doing that it's because degree that's abuse but they want to keep your money that's why and they don't want to do the cases. They don't want to manage your cases. It takes manpower work. 

Kelly Johnston [00:37:50] It's the work. 

Lesley Hensell [00:37:51] So there's there's money out flow and then there's work on their part. Right. So I will tell you the reasoning on this. Amazon right now, because of current decisions on these at federal appeals court level, I believe I think it'll go to the Supreme Court because the reasoning does not match on these appeals court decisions. And they need this needs to be one set of laws for the whole country on this, but are not set of laws. But one ruling that governs everything on this. Amazon has shared liability for products that are shipped from its fulfillment centers. So if someone is hurt by a product, people can sue Amazon and in addition to the manufacturer and we can all debate whether that's fair or crazy or whatever, especially for products that are not obviously harmful, a little different if one darts the things that are not obviously harmful is okay, I'm I'm muting your puppy for a minute, Kelly, but I think the lawn birds is what got her, though She's laughing pretty hard the wandered and the dog that okay. Yeah so the so you don't want Amazon either suspending your account or suing you and I can't see a future where someone filed a lawsuit against the manufacturer and Amazon and Amazon somehow tries to join the suit like they try and settle for a lowball and then join the suit to take you out as the manufacturer. Therefore, all the product testing needs to be done. You need to have it updated on a regular basis. If you use a testing company, which you should, and there are Amazon approved testing companies which you should use because this easier, they will even tell you how often you need to update your testing. So they'll say, this kind of product, it's actually every manufacturer of this kind of product. It's once every two years all that. 

Kelly Johnston [00:39:56] I mean, that's solid, solid advice. And like Lesley said, we have our own bent when it comes to how we approach these questions. There are so many different things to know. I would even go a step further on the very first piece that Lesley touched on about the trademark. Yeah, you need your trademark, but you might also need copyright. You might also need patent to. Pending on what your product is. Keep that in mind and I cannot stress this enough. No matter what IP you need. Don't sleep on it and don't skimp on it because if you do, it will come back to bite you. One of the things that I've seen clients say that I just kind of want to go, no, no, no, no, no, no, no, no, no. When they get hit with trademark complaints. And they're using somebodies mark that they shouldn't be. And their argument is. But we went to market first. I don't care. You didn't register the darn thing. As far as the US CPI is concerned. They own the mark. You are not going to win this argument. So that's why if you're willing to set up a brand, if you're really going to start from the very, very beginning of the trenches and have a design and do all the things, do everything Lesley said. I agree with that 100%. You have to be in this for the long haul. The other thing that I would probably touch on specific to Amazon. Is you need to decide once you have decided on your product and your brand and all that stuff and you're going to do this, you're committed, you're going to put the money in. You have to decide how you're going to grow your brand on Amazon. And what I mean by that is, are you going to play by the rules or are you going to do dumb things and get yourself suspended and get your brand banned forever? I see way too many businesses go in the tank because they could not stop. Violating Amazon's rules about product review and feedback manipulation. They just could not or did not build into their business plan the organic growth that's necessary. And they they took the easy ways to manipulate buyers into getting feedback. And I understand why people do it. It's not that most sellers even want to break the rules. They're just trying to grow their brand. But Amazon has very, very, very specific rules because they have hewed to a very conservative interpretation of FCC rules and FCC rules. It behooves you to know what those are. It behooves you to understand where your brand is going to fit with that and what you are willing to do and not willing to do in order to grow your brand. These are questions that, well, you have to start with yourself in your own personal thoughts. You also should definitely seek counsel from attorneys and other people like us in the space who can give you the real deal about not only what is at stake for you, but the consequences if you choose A, B or C, You know, what's a behind door number one? Well, that way lies ruin. Don't do it. So that's that would be the other thing I would comment on. I mean, there's again, tons of other things we could talk about. How do you market your brand, How do you do this, how you do that? But that's not really our area. We're here to help you launch and stay safe. That's kind of our our role in life. 

Lesley Hensell [00:43:18] Excellent erudition there, Kelly. And it actually we have a companion question from another YouTuber in Jav says, What kinds of things should we worry about? If I'm planning to start skin care products, private label. So this so first, this dovetails with everything we just said. Yep. So everything we just said, very important. Be aware of the testing for skin care and you're going to need to actually budget in advance for this because there's some like standard tests aren't that big of a deal like a few which are just testing like what ingredients are in there? Is it pure? Does it have bacteria growing in it or is it is it growth? That's pretty much it. It's I mean, there's actually a there's a there is a cell. Like there's all these different cells on there. One of them is actually smell. So it's like, in other words, is it rancid because you all know how like oil will turn and it yeah. So I mean, a few is really basic and that's inexpensive but a lot of stuff that is skin care required feature I testing that is what most of us know as skin patch testing. So that's where there is a group of people that they find who will put your product on their hand or whatever every day for a certain number of days, and they report whether there's any reaction. So anything that is skin care that you're rubbing into your face and it's sitting there or rubbing into your hands, going to have that testing, it's expensive. Just be aware it is. That is not cheap. No, it's not something you repeat with every batch, but I don't know how often you have to repeat it honestly, and I would find that out in advance. 

Kelly Johnston [00:45:07] I want to say it's every two years, but that may have changed. That's the other thing with this stuff is that anything that's a consumable, whether it goes in your body or on your body, the testing regulations for that stuff have a tendency to fluctuate and change. And what you think might be applicable for, say, shampoo is not going to necessarily be applicable for a lotion or something you use to strengthen your nails, which I badly need. Things like that are going to have different requirements. The other addendum to that that I would say is not only do you need to know your testing, you need to have that testing organized and on hand and available at any and all times because Amazon's going to ask you for it when you least expect it. And I find that our sellers feel a lot of stress. Our clients feel a ton of stress when they are called upon to find this stuff because they don't know where it is. If you do nothing else to save yourself time and headache with this and all other things we're selling is create a document retention system that is both safe, secure and organized because it will help. It will really it'll save you so much time and energy. But yeah, I think that the with skincare in particular that is definitely know your testing get on a schedule and form that relationship with a firm that either specializes in that or is approved by Amazon or both ideally so that you have everything you need on hand and they'll keep you on the straight and narrow and help you to to head off any problems that you have. Because it's a tough it's a tough industry to sell in, but it can be extremely, extremely rewarding and lucrative if you get it right. 

Lesley Hensell [00:46:49] So yes, and for most of these products and you're right, I mean, some of these folks who sell like vitamin C serum, there's a reason there's a lot of them out there because they're making fake. I've seen their invoices and then I see what they charge. Like our clients. 

Kelly Johnston [00:47:04] The margin margin is significant. And you can't say that about a lot of things. Like you can't say that about electronics or cameras or anything. The margins very small. So you have to sell by volume. Yeah, I. I have a lot of respect for anyone who gets into that particular product segment and does well because it takes a lot of dedication and attention to detail and a willingness to do things the right way. 

Lesley Hensell [00:47:27] So you also need to make sure you have great product liability insurance. So in my mind, you need to have that both for your Amazon account, like as a seller and then also as the brand owner or manufacturer, whatever you need. Also, you need to make sure that your manufacturer is GMP certified. If they are not GMP certified, Amazon does not want you selling their products if they are either consumables or topicals of any kind, anything that goes on or in the body, they must be GMP certified. Try and get around that at your peril. You don't want to even try. You'll end up with a product you can't sell and get it from Amazon. I would strongly recommend that you find a US based manufacturer if at all possible. There are so many reasons for this, but you can also manufacture your products made in the USA, which is a big selling point on topicals because there are lots of topicals that come from other countries that get testing done, that have things in them that are terrifying, like lead. Yes. 

Kelly Johnston [00:48:30] They lead mercury. 

Lesley Hensell [00:48:32] Mercury and generally speaking, topicals manufacture in the United States. You do not hear those horror stories. I'm not saying they don't happen, but it's really not something that you hear. Whereas things coming from China and sometimes other countries as well have those problems. There are ingredients that are acceptable in other countries that are not here. There are things like topicals in Japan that we do not allow. So here in Mexico, there's like bleaching stuff we do not allow to sell here. And so they just have a different set of standards and it'll it'll get easier. But the insurance is super crazy important as well. And this is another thing, you know, don't ship out there. There are times when Amazon will actually throw a court order on someone because they don't produce the testing documents for their insurance proof and you end up with all kinds of you don't want you don't want to go there, don't go there. Don't do it. Do it. And last but not least, make sure that you're on gated. I know this seems like a small thing, but can you even imagine? And I know it's happened because I've talked to these people. You're like, you know, I've sold for years on Amazon. I'm going to do my own product and I'm going to do it in this new category. And I don't have top goals in gaming. But I didn't think about it. And then I went and ordered a bunch of vitamin C serum under my own brand. And now I'm not ungraded and topicals. It can happen. So make sure that if you're going to sell safe facial care and you've never done it before, you know, get yourself the wholesale facial hair products and make sure you can list them and sell them before you order anything from a manufacturer. I know it seems dumb, but it's a thing to know now.

Kelly Johnston [00:50:28] Yeah, that could tank you real quick if you don't take care of that one. Seemingly small detail. 

Lesley Hensell [00:50:35] That would be horrible. Okay. I've got a quickie for you, Kelly. I'm ready. This is kind of fun. Eric says. And by the way, thank you for the online questions. You all. Those are great. Eric says, Have you seen this new website called BadBuyers.com a place for sellers to alert other sellers to fraudulent buyers? Best part is it's free. Okay, so I went on this website and I checked it out. It only has a few people in it, but it has their has their home addresses. So, Eric, I have to say, I sold on eBay for 100 million years. I'm I look really good for my age and I'm full of full on eBay forever and ever. And now. This would only be relevant if your merchant fulfilled on Amazon and maybe you're selling high dollar items. I understand what you're getting at here because there are abusive buyers out there and there are people who literally make their living by stealing from people who sell online. They make up fakes. I didn't get its fake returns and shipped, but garbage. Totally understand. I am not downplaying or negating in any way the reason people would want to do this and what it's particularly upsetting as a seller is that as a seller, you have no power at Amazon to get anyone blacklisted for being a total jerk and stealing thousands of dollars sometimes. And on eBay. You can't do it either. You can't refuse the sale without taking a hit to your own metrics. I have met people and talked to people who have been scammed by the same buyer over and over and over again. And because of their particular seller metrics and the way things were, they didn't feel like they could like not ship the order in. If they didn't ship the order, they would take a hit that they were afraid would hurt them and they would get suspended for performance metrics. Right. Like if you don't have very many seller fulfilled or a ton of eBay, if you're if you're low volume in number of sales, but high dollar, those are the people that get hurt by this. Like you're selling expensive stuff that you only sell one a day or one every other day. So if you don't ship something or if you cancel an order, the percentage is terrible. Yeah. So I completely am down with all the feelings of someone who is sold on eBay. You know, since. Since Scott was a boy. 

Kelly Johnston [00:53:12] I didn't know you were a Jurassic seller. I learned something there. 

Lesley Hensell [00:53:15] I am. I am a drastic seller, and I like those three minutes or stretch of time. You are. 

Kelly Johnston [00:53:21] Clever girl. 

Lesley Hensell [00:53:23] But when you take a sellers name and address and you put them on a public website and then this this website or even sends the person a snail mail telling them that they were put on this public website and the only person who can remove it is the seller who put them on there. You're violating terms of service on eBay and the BSA on Amazon privacy. 

Kelly Johnston [00:53:53] How do you even know that this is accurate? I have so many concerns. This is like such a vigilante. Gosh. 

Lesley Hensell [00:54:02] Wow. Yes. And well, okay. So I'll tell you, Kelly, I'll tell you what a lot of people would say. 

Kelly Johnston [00:54:07] I know. 

Lesley Hensell [00:54:08] Well, if you Google this guy's name, his address comes up just like it comes up just like it's the same thing, not eBay. I know. We all know. We all know that's true. That doesn't mean you can do it, because it specifically says whether you think the privacy thing is B.S. or not, which honestly kind of is in today's world because I can find anyone if you give me a little bit of time and a database. Well, that's. 

Kelly Johnston [00:54:32] Not what I meant in privacy. 

Lesley Hensell [00:54:34] But let's say Amazon sees it as privacy and eBay sees it as privacy and they see it as data privacy. And because they see it as data privacy, you're violating like you're not just violating a little policy, you're violating a normal policy because they will put you in the same category as someone who took the credit card number and sold it on the dark web. They see that is the exact same thing. And I know that's insane to you and me. Normal. Not Amazon, not eBay, internal employees. But when they say data privacy, it's this whole thing all in one bucket. And so you just can't do it. You can't put it out there. Whoever created this website, at some point, the lawyers from Amazon and eBay are going to be contacting you. They're going to be contact you. They're going to tell you to take it down. If you don't take it down, they're going to get a court order. They're going to get an injunction forcing you to take it down. Then they're going to try and get a court order to cover their legal bills related to having to send you the cease and desist letters or the injunction to take it down, whichever one it is, that scares you into doing it, because eventually you're going to have to take it down because you are violating terms of service and the BFA. So I get it. I understand all of your feelings. I am totally empathetic towards all of your feelings and you are not wrong in your motivation. But if you do this, it's going to be very expensive to whoever is taking part. 

Kelly Johnston [00:56:03] I cannot stress enough that nobody knows for sure what happened with those actual transactions elsewhere. You are taking someone else's word that this person is somehow bad. It is not outside the realm of possibility that you could have an idiot on your hands, someone who doesn't understand e-commerce. I sell on Etsy. I'm an artist. I see constant complaints from other Etsy sellers about truly ludicrous buyer behavior and I mean just rude and incredibly just dumb because they sold downloads, for example. Maybe they sell patterns for crochet and the person immediately can't figure out how to download it and then they download it and I can't open it. And then they say it's not what they expected and that in the end she turns into whole thing. And these buyers are almost to a to a single person rude, entitled and just. Almost. Defamatory of the seller and what they've done. I mean it's borderline. It's really, really bad. That said, what Lesley said, because if you go down that path, what you stand to lose is so much greater than I think you think also. And yes, privacy is a thing of the past. The Internet has completely revamped and revoked a lot of that. But if I'm a buyer and I give you my information, I don't expect you to call me or email me or send crap to my house unsolicited in any way, in any capacity. And I think that's reasonable for most buyers. And we're all consumers. How would you feel if someone did that to you? Amazon as a rule, is not going to take down a seller over a single buyer. That generally means you have other problems. It's like the quote from my one of my favorite movies, Grosse Pointe Blank, where what's his face? The actor? Cusack shows that he's the assassin. He says, Chances are, if I showed up at your door, you did something to bring me here. And that is usually because there's a pattern of other behavior or other performance problems. One bad buyer is almost impossible to take down a good seller. There are exceptions to that, of course, with somebody who's brand new and really, really low volume and all that kind of stuff. It can be misinterpreted, but. This is a cost of doing business, dealing with absolute moronic, evil, scammy buyers. Unfortunately, is a cost of doing business. And it would be if you had a brick and mortar store to. So. Think before you act on something like that, because I know it probably feels really vindicating to go get that guy. But to what end and to what price?

Lesley Hensell [00:58:54] Also, I'm very sad that someone spent the money to buy bad Viacom because that does not sound like a cheap domain name. 

Kelly Johnston [00:59:01] It was not. 

Lesley Hensell [00:59:02] And I'm telling you all it is, this is a it's going to be a demand letter. If you send the first might be a demand letter, then a cease and desist, then an injunction. But there is no way Amazon and eBay are going to sit around forever now. It might take them a while to find it, but they will. 

Kelly Johnston [00:59:26] Etsy, Amazon, they will all come calling. If that gets big enough and wow, wow. The damage that could do. I just too many people get stalked and harmed, physically harmed because of crap like this. Not this exact thing, but other things similar to it. It's just not worth that risk. You might put somebody in danger and over what you know, especially since you don't know the veracity of the information that lands on this website. I just you got to be really careful and don't turn into a private detective. Don't go Inspector Gadget on your pliers. It's just not worth it. Even if you do have robot arms, it's just not worth it. 

Lesley Hensell [01:00:09] Don't go and stuff together. Okay, so. I have to say thank you for everyone who sent these questions. We really appreciate them. And to close out, I want to talk really briefly about a topic that we featured in our most recent newsletter. And if you did not get our newsletter, I would love for you to sign up. If you go to Riverbend consulting.com and you can find a little box where you can subscribe to the newsletter and we don't send tons of junk, we're not going to overwhelm you with garbage. And every month we have a fantastic newsletter that is full of truths of what is going on in the Amazon world. So our top story, as it were, this month asks, Is it time to revive that old suspended Amazon seller account? And so I'll tell you why we wrote about this. And if you if you want to read the article and you didn't get the newsletter, you can actually find this in the blog section of our website as well for this month. There are so many people out there who've been suspended over time and they have really high quality accounts except for the fact they got suspended many moons ago. And there are a lot of reasons to revive that old account. The rules of Amazon have changed and you are now allowed to have more than one account as long as it's for a reasonable business reason, which you can come up with right now. Now, the biggest reason to bring back that old account is it's putting your current account at risk. Because if at any point Amazon figures out that your new account, your current account, is related to a suspended account, they can take down your your new account. So why not revive that old one to have an extra account that you can fill a different brand or different sourcing method, different category, whatever the case might be, and not have it hanging around kind of threatening you. Also, a lot of people don't realize some of these older accounts are super crazy valuable, and you're not thinking of it because it's old. So some older accounts allow daily payouts, which is crazy. Older accounts have a 100% payout. No rolling reserve. I have one of those. My account I signed up in 2010 and so I have no rolling reserve. So when I get paid, my balance goes to zero. If you have an account for my early teens, good chance that you have that that is so valuable because you can really cashflow things better. Also older accounts a lot of times have more category branded aced Asian approval. And I can confirm I. Okay. This is how you know you're a dinosaur on Amazon. This bizarro thing used to happen where they would kind of open up category approvals. And I guess it's because the category manager would feel like they don't have enough sellers in their category. So like watches. So like for a few days, anyone who went in and clicked in watches would get approved. And this happened a lot like 2011, 2012, 2013. I mean, I'm approved for freakin everything. And that is why. Because, like, you didn't have to submit anything, it was just super bizarro. So if you have one of these older accounts, chances are there's a benefit to reviving it and bringing it back from the dead. A lot of times those older suspensions, it's easier to get them reinstated now than at the time they happened. Yep. We have a huge success rate with those. I think the oldest account I've ever gotten back was 17 years old, which is absolutely crazy because you're talking about the very beginning of the whole Amazon seller thing. 

Kelly Johnston [01:04:16] And so much has changed. Like international editions used to be prohibited. They're not anymore. If you if you had a college account like you were selling your textbooks and you got busted for international editions, I bet you can get reinstated. This I mean, and again, the caveat about shipping stuff for Q four still applies, but Lesley's absolutely right. Bringing people back from the graveyard of these really old suspensions happens a lot, and it can be super valuable to you. Plus, as she pointed out earlier, it removes that risk because even though Amazon might sorry, even though Amazon might say, you know, they've got this other account, it was blocked 15 years ago. They weren't selling the same thing they are now. That doesn't mean that somebody might not turn around one day and go, You know what? I just don't like it. And they suspend you. And now you have to explain what happened 20 years ago. Good luck with that, because you're not going to remember all the details. So remove that risk. Give yourself another opportunity. And you know, you've got a lot of valuable access to watches and things that you might not even think about. There's a way to look at this as a resource, not just a liability. 

Lesley Hensell [01:05:27] Yeah, and some things are really hard to get engaged for now that you may be grandfathered in to. Sexual wellness is a huge one. It's really hard to get into now. Topicals are difficult right now. You might be grandfathered into that as well. Grocery used to be like easy and not any more. And then anything that's like valuable stuff. So like luggage and watches and things that are higher dollar and luxury brands than them. Yeah. Yeah. So a lot of that it's it's it was a lot easier back then. So even if even if you want to completely exit Amazon and you want to sell your account to someone which is the thing that happens, you can go through brokerages and all that. If you're on gated for all this stuff, it makes your account very valuable. And if you have daily payout or no rolling reserve, it makes your account six six figure valuable as an empty account. And we can talk later about all the problems of selling accounts, but just saying it's an asset if you can do it right. But you know, why not? Why not revive it and give yourself options? So if you'd like to talk about it, give us a shout. Give us a call from the website or fill out a form. We'd love to talk to you about it. Also, it doesn't really matter. Okay, This is some crazy talk. The only thing that matters is that you can actually access the email box that was used for the login. So that email address needs to work. That was your log in email address. You need to be able to get those emails. Like if I sent you one today, it does not matter if you don't remember why you were suspended. I know. That's crazy talk. If you if you remember why you were suspended. Anything about it? That's helpful. If you can't find any of the old messages, it does not matter. We can usually get them to tell you there's ways to work. It will even, like, do kind of a pretend appeal. And they're like, We didn't spend you for that. We just wanted you for this other thing. And then we we kind of drag all the information out and get it appealed. So we'd love to help you with that. If you've got one of those. And I'm telling you, it's a it's a useful thing to have, whether it's because you want to sell it down the road or just have more options for yourself. 

Kelly Johnston [01:07:46] Absolutely. Couldn't agree more. This is definitely something I would explore. If you've got one of those lying around, we might be able to help you. 

Lesley Hensell [01:07:53] Yeah, and and also, if you just need cash flow some way to go to be able to get a daily payout or to have no reserve. Huge. When people have a giant reserve, it just makes it so much harder to buy new inventory. 

Kelly Johnston [01:08:05] Does it? Like you said, the cash flow stuff just goes out the window and that's the case. 

Lesley Hensell [01:08:10] Yeah, absolutely. Well, thank you so much, everyone. Of course, a huge thank you to Kelly, who's just the most just the best at all of this Amazon suspension stuff. Don't know what I'd do without her day to day, but especially Wednesdays like today. I know when we talk about of these things. Yes. When we talk about all these fun issues. I appreciate everyone sitting in questions. These are fantastic. Thank you so much. Again, if you're interested in the newsletter, go over to the website and I hope to see you all again in about a month. And until then, happy selling.