{"id":220547,"date":"2023-02-08T01:23:57","date_gmt":"2023-02-07T12:23:57","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=220547"},"modified":"2025-04-02T12:03:32","modified_gmt":"2025-04-01T23:03:32","slug":"selling-your-products-on-amazon","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/e-commerce\/selling-your-products-on-amazon\/","title":{"rendered":"Legal Considerations for Selling Your Products on Amazon"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">Many business owners have hopped onto Amazon to sell their products online to a wider customer base. With Amazon\u2019s recent arrival in New Zealand, you can join in on the trend to expand your business. However, before launching your Amazon store, there are some factors to consider, including intellectual-property protection to business structuring. This article will guide you through important considerations to bear in mind when selling your products on Amazon in New Zealand.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">The Importance of Research<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Before making significant investments or decisions, you should undertake sufficient research.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Firstly,&nbsp; you&nbsp;may wish to familiarise yourself with Amazon\u2019s seller restrictions. Therefore, you should go through Amazon\u2019s restricted product list if your product needs approval before you list it.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Additionally, it is best to determine which products sell well on Amazon to ensure it is an appropriate sales channel for you. As a general rule of strategy, your goal is likely to sell a product with a low entry barrier that you can offer for a competitive price.\u00a0 As a result, you may wish to review and evaluate competition levels and competitor listings. For instance, if competitors tend to offer Prime Shipping and have 5-star reviews, you may need to strategise carefully to ensure you can sufficiently compete.\u00a0<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Business Structuring<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">If you do not have an existing business, then you need to determine a business structure to operate through. Most Amazon sellers are small to medium-sized businesses that form part of a large distribution network. When choosing a structure, you may consider limiting your liabilities, such as personal interests and finances by incorporating your business.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Business structures include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/legalvision.co.nz\/business-structures\/operate-business-as-sole-trader-new-zealand\/\"><span style=\"font-weight: 400\">sole trader<\/span><\/a><span style=\"font-weight: 400\">;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">partnership; and&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">company.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">As a sole trader, you will own the business alone. However, you owe unlimited liabilities to your business and scaling your business can be challenging. Alternatively, if you intend to go into business with at least one more person,&nbsp; you can set up a partnership. Depending on the form of partnership, you may again owe unlimited liability.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you wish to limit your liability, you may wish to <\/span><a href=\"https:\/\/legalvision.co.nz\/corporations\/the-right-time-to-incorporate-a-company\/\"><span style=\"font-weight: 400\">incorporate your business<\/span><\/a><span style=\"font-weight: 400\"> through a company. With a company, you will own the business as a shareholder. Decision-making powers exist largely at the director level.&nbsp;<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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IP protection includes:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">trade marks;<\/span><\/li>\n\n\n\n<li><a href=\"https:\/\/legalvision.co.nz\/intellectual-property\/how-to-apply-for-patent-protection-in-new-zealand\/\"><span style=\"font-weight: 400\">patents<\/span><\/a><span style=\"font-weight: 400\">;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">design rights; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">copyright.<\/span><\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p><span data-rich-text-format-boundary=\"true\">A trade mark will project your brand name and logo. You will gain exclusive rights to use your trademark through a registered trade mark. This will prevent competitors from using or copying your trade mark without your consent. To register a trade mark, you can apply to the Intellectual Property Office of New Zealand (<\/span><a href=\"https:\/\/www.iponz.govt.nz\/\">IPONZ<\/a>).<\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">Likewise, you can apply for a patent on IPONZ if you have an original invention that you intend to use in some capacity, including selling a product. However, you must ensure you can describe your invention and that a similar patent does not exist.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Legal Agreements<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">In some scenarios, you will need to consider drafting a manufacturing or distribution agreement. If another business is manufacturing your products, you may need a manufacturing agreement. Alternatively, you need a distribution agreement if you are creating a relationship with another business to sell and distribute its products.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Your <\/span><a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/common-mistakes-distributor-agreements\/\"><span style=\"font-weight: 400\">distribution agreement<\/span><\/a><span style=\"font-weight: 400\"> often outlines:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">purpose of the contract;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">length;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">whether you are the exclusive distributor;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">minimum standards of performance;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">marketing and promotion obligations;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">training provided by product owners;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">forecast of supply; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">delivery and payment.<\/span><\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Meanwhile, your manufacturing agreement should detail:<!-- \/wp:paragraph --> <!-- wp:list --><\/p>\n<ul><!-- wp:list-item --><\/p>\n<li>your ownership over IP rights;<\/li>\n<li>whether the manufacturer will also distribute and market the products;<\/li>\n<li>length of agreement;<\/li>\n<li>products being manufacturers;<\/li>\n<li>renewal clause;<\/li>\n<li>price and payment; and<\/li>\n<li>warranties and representations.<\/li>\n<\/ul>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Amazon\u2019s Policies<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">When selling on Amazon, you must comply with their policies and code of conduct. Non-compliance can result in a breach of contract and your business being suspended from selling through Amazon. These policies will also help you comply with New Zealand\u2019s consumer laws, including the <em>Fair Trading Act <\/em>and the <\/span><em>Privacy Act<\/em><span style=\"font-weight: 400\">.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Amazon&#8217;s policies and code of conduct include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">providing accurate information;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">acting fairly;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">ensuring you do not influence customer ratings or feedback;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">no engagement in price fixing;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">using customer information appropriately; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">only owning one seller account.<\/span><\/li>\n<\/ul>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/10\/21140438\/NZ-Startup-Manual-251x360-2.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">NZ Startup Manual: A Legal Handbook For Founders<\/div>\n            <div class=\"body-text\">\n                <p>Essential reading for anyone building their startup. This free guide includes practical advice and seven real-life case studies.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/NZ-Startup-Manual.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Selling on Amazon can be rewarding so long as your business is properly prepared and compliant. Firstly, you should conduct some basic research to ensure Amazon will be beneficial for you. Secondly, determine a business structure and consider how you will protect your IP. Thirdly, gauge whether you need a manufacturing or distribution agreement and work towards drafting these with your lawyer. Lastly, ensure your business complies with Amazon\u2019s policies and code of conduct.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help opening an Amazon store, you can contact our experienced <a href=\"https:\/\/legalvision.co.nz\/business-lawyers-lp-new-zealand\">business lawyers<\/a> to assist as part of our LegalVision membership. You will have unlimited access to lawyers who can answer your questions and draft and review your documents for a low monthly fee. Call us today at\u00a0 <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.nz\/membership\/\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.\u00a0<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1675772580862\"><strong class=\"schema-faq-question\"><strong>How can I protect my IP?<\/strong><\/strong> <p class=\"schema-faq-answer\">Depending on the type of IP you want to protect, you can apply for a trade mark, patent or design rights. Copyright will apply automatically to any original idea or design.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1675772588050\"><strong class=\"schema-faq-question\"><strong>Does Amazon have seller policies?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes. Policies include accurate information, handling customer data, no price fixing and acting fairly. You must comply with these to avoid suspension.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Many business owners have hopped onto Amazon to sell their products online to a wider customer base. With Amazon\u2019s recent arrival in New Zealand, you can join in on the trend to expand your business. However, before launching your Amazon store, there are some factors to consider, including intellectual-property protection to business structuring. This article<a href=\"https:\/\/legalvision.co.nz\/e-commerce\/selling-your-products-on-amazon\/\">Continue reading <span class=\"sr-only\">&#8220;Legal Considerations for Selling Your Products on Amazon&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13316,"featured_media":201627,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"216415,205749,210139,219360,216736,210774","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[6],"tags":[25,637,1506,1764],"class_list":["post-220547","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-commerce","tag-small-business","tag-e-commerce","tag-amazon","tag-online-sales"],"acf":[],"yoast_head":"<!-- This site is optimized with the 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