Becoming an authorized reseller on Shopify involves several steps, primarily centered around verifying your ability to sell branded or trademarked products legally. This verification process is crucial for ensuring that Shopify can confidently support the sale of these items on their platform. Here is a detailed guide on how to navigate this process successfully.
Understanding the Need for Verification
When Shopify withholds payments on your account, it is often because they need to verify that you are an authorized reseller of the branded or trademarked products you are selling. This requirement helps protect both the brands and consumers by ensuring that only genuine products are sold on Shopify. If you are selling popular items such as sneakers, luxury bags, or electronics, this verification becomes particularly important.
Authorized Reseller Verification
Shopify’s “Authorized Reseller Verification” process requires you to provide proof that you have permission from the brands to sell their products. This proof can come in two forms:
- Written Authorization: This is a formal document from the brand or rights holder that explicitly grants you the right to sell their products. This authorization is typically more challenging to obtain, especially from well-known brands like Nike or Sony, as they often have stringent requirements and may limit the number of authorized resellers.
- Invoices from Suppliers: Under the First Sale Doctrine, if you purchase products from authorized suppliers, the invoices from these transactions can serve as proof of your right to sell the products. These invoices should clearly show that you have bought the products from legitimate sources, thereby proving your resale rights.
Gathering the Necessary Documents
To comply with Shopify’s requirements, you need to gather and submit the appropriate documentation. Here are some tips on how to manage this process effectively:
- Organize Your Invoices: If you opt to use invoices as your proof, ensure that you have a system in place for tracking all your purchases. This system should include detailed records of every transaction, including dates, quantities, and the names of the suppliers. Having these records well-organized can make the verification process smoother.
- Request Detailed Invoices: When purchasing products, ask your suppliers to provide detailed invoices that include information about their authorization to sell the products. This additional detail can strengthen your case when submitting documents to Shopify.
Submission Process
Once you have gathered the necessary documents, submit them to Shopify for review. While awaiting verification, you may continue to take orders and receive payments through other payment processors such as PayPal. However, payouts through Shopify Payments may be placed on hold until the verification process is complete. This temporary hold is a standard part of the process and ensures that Shopify can confirm your status as an authorized reseller before releasing funds.
Potential Challenges and Alternatives
For individual resellers, obtaining written authorization from major brands can be challenging. These companies often prefer to work with established retailers and may not grant licenses to smaller sellers. In such cases, relying on supplier invoices is usually the more practical route. However, ensure that these suppliers are legitimate and recognized by the brands they represent. If, despite your best efforts, you are unable to obtain the necessary verification from Shopify, consider alternative platforms that might have different requirements or are more lenient in their verification processes. While Shopify is a popular and powerful e-commerce platform, it is not the only option available to resellers.
Have questions about your reseller business or ecommerce store? Feel free to reach out for a consultation.
Information provided for educational purposes, not legal advice*
