How to verify as an authorized reseller for branded video game products?

Shopify Discussion
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Several months ago Shopify was asking for invoices for “trademarked products” from me for my video game store. I have a retail brick and mortar and online video game store that sells new and used games, hardware, and accessories. I submitted invoices, and filled out some form, and thought that was all done. Today out of nowhere I got this email:

Hello,

Thank you for completing the ‘attestation for the sale of branded or trademarked products’. In order to support the sale of branded or trademarked products we’ll need to verify you as an authorized reseller.

Your Shopify Payments payouts have been placed on hold until we can verify you are an authorized reseller. Please visit this link or login to your Shopify admin to securely upload the following documents:

  • Written authorization from all of the brand(s) or rightsholder(s) whose products you sell
  • Invoices from the suppliers these products are purchased from

All of your documents will be handled securely, according to our privacy policy.

If we don’t receive the requested documentation by May 12, 2022, we may disable your account.

If you are unable to provide the requested documentation you will need to remove the branded or trademarked product(s) from your Shopify store and admin.

If you have any questions about this request, please reply directly to this email.

I submitted a couple of recent invoices that covered a variety of lines, but obviously not everything as we carry thousands of products, and let them know in the comments that if there was something specific let me know and I’ll produce the invoice for it, but the manufacturers I deal with (Nintendo, Sony, Microsoft, etc) do not authorize individual dealers. That is done by the product distribution companies we buy from. Obviously we’re small, and buy from distribution instead of direct like a Walmart or Best Buy. The way that shopify worded things implies that they REQUIRE written authorization though, which makes no sense since only mega retailers are direct with those companies. Should I be shopping for a new platform? LOL, I just transition to Shopify about a year ago, been in business 12+ years.

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We too have experienced this same issue, it appears that Shopify is taking an antagonistic stance on small business. Everything you experienced has happened to our business as well, after putting 100s of hours into our business that I won’t get back. We sell new and used clothing, all of which were acquired and owned by our LLC.

I would highly recommend that all small business leave Shopify as they are asking the impossible. For a store like ours, similar to a vintage boutique, to track down the invoices for each and every item owned is nearly impossible. Some of these purchases go back 15-20+ years. Additionally I don’t see Prada, Ralph Lauren, Stone Island etc. giving us permission to sell their used clothing.

This hardened approach taken by Shopify, where they insulate themselves from having to speak with the customer or allowing us to appeal is straight bullying mentality. I’ll be taking my business everywhere and look to advise as many people and small businesses to avoid using Shopify in the future. Take your business to Squarespace, GoDaddy or Google!

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Same thing happened to my store. Luckily happened at month three with less than 300SKU’s which makes migration easier.

I would understand this is a gesture to vet out counterfeit sellers, in which we are not. What I find laughable is their way of due diligence showing a complete lack of understanding how small retailers operate, as if every Shopify merchant is some big fish dept store with direct brand relationships.

This is enough to take my business elsewhere.

I’ve pre-paid 1 year for a Basic Shopify Plan, currently asking for a pro-rata refund. Their Terms of Use has a statement that says they’re not responsible for refunds, I have my reservations that this is an even legal and will consult some form of legal body if refused. This is not ok.

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Hi, were you able to resolve the issue?

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Hey, curious, was this resolved?

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This recently happened to me…wondering if this was resolved for you and how?

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Hi

We’ve recently had the same issue with the exact same message. We provided receipts for them but this was not sufficient, unfortunately. We also buy from retailers and wholesalers, not directly from the brand, but what is more frustrating is we buy our product from official brand retailers just don’t have a supply contract in place with the brand as they only give accounts to large organisations.

They said to us “our banking partners have asked for authorisation documents for the brands”. We have had the same issue on Amazon as well. It seems if you want to resell branded products you need to do so through your own website which probably costs a lot more in the short term but you avoid these potential issues. We spent a lot of money building our online store which now seems is going to waste due to Shopify using bullying tactics and not accepting legitimate documentation and asking for the impossible as you said.

I hope you have found a solution to this problem. If anyone has experienced similar issues or found a solution please get in touch.

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Hi, sorry to hear about this.
First thing I did was pull as much data as possible from the store before one gets locked out (Mainly the content and products), and prepare to migrate to an open source provider because it doesn’t seem like Shopify will reverse this action any time soon.
Use a cart migrating app or plugin to import your products & its media to the new site.

Good luck!

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Hi, we have a 3rd party payment provider account ready to switch when they ask this again. The previous case was also resolved. We have a Plus subscription so a personal account manager, that helped a bit. Just keep sending as much info as possible, don’t stop communicating and don’t surpass the deadlines they give each time before uploading a new document. Also upload letters with your company info and stamps where you explain where you are formally you are permitted to sell in your target area the products you are selling for reason X or by law Y and how this permission is legal in your case.

Be creative, don’t surpass the deadline and upload one by one as much info as possible. While doing this just to be sure try to take a temporary turn left with a 3rd party payment solution, and switch of Shopify payments, just to be sure.

good luck!

Keep in mind though if you are actually selling products in a region that its not permitted to sell without a permit, shopify is not the platform to go. It kind-off depends of your location, some countries are easier then others i guess.

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We are experiencing the exact same problem, only with designer clothing. What did you do?

Should it be the brand on the picture or the name in the website link what make them do this?
In our e-mails they keep referencing to the domain name and brand name.
Anyone that can help?

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Any luck resolving this issue?

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Hello,

I’m a 100% disabled Marine Corps war Veteran and I built my store with Shopify for the last four month and Shopify just hit me with the same BS after I spent countless hours day and night working on my store. I wish iI would have knew this before I started working with them. Thank for the information I’ll be moving to a new pathform.

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Hi there,

Appreciate you reaching out! Best way to solve this issue is to create 2nd forms or dated letters to Shopify on behalf of yourself. I know it sounds kind of odd, but if you say ‘I (name) purchased these items and am the sole proprietor of these goods. They are custom items that were provided by my business, and my business alone.’ Something along those lines.

The next document you make should I say (name) gives (business) the right to sell these goods. You’d be surprised but this can and should work. I can’t promise this and wouldn’t claim to be an authority here, but it’s worth a shot.

Thank you for your service and sacrifice!

All the best,

Brian

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Thank you!

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Did you get this resolved? We are going through the same thing right now. Wondering if anyone got this problem resolved and stayed with Shopify? Or where they have gone if not.

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We’re selling medical supplies, and put in countless hours, and now they asked us to provide Health Authority Authorization documents.

We don’t have it and never heard it before.

If we know about this, we probably not signed up for the account and paid for one year subscription.

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We are currently having this same issues. The ones reviewing your documents may have no clue what they are doing.

75% of our offers are books from publishers, we sent an invoice from the biggest publisher because the first notice never asked for invoice for specific titles(just imagine a so called big player in the market asking for invoces for all your inventory?)

We added a note for the one we submitted that it’s unprofessional not to ask for invoices for specific products, So, another notice showed up asking for invoice for specific books from the same publisher we submitted.

If they know anything about the titles they asking invoices for, they would’ve known the titles are from the same publisher’s invoice we had submitted.

Shopify’s a “glorified” hosting service…and anything you’re getting should be seen as such.

Does a hosting service run ads for your business? No! Same with Shopify.

Is there anything linking the Shopify name to your website that’ll make likely customers say “oh, it’s a “Shopify partner or hosted site”, i’ll buy there? No!”

At the minimum, are you not paying as much to host on Shopify as to sell on Amazon? Yes.

Amazon is a real platform{with many faults too}, but, most people will buy from you because you are an Amazon seller.

Amazon does seem to have a kind of partern to their madness,…not Shopify.

Hosting away from all the “big selling platforms” is the solution if you really want to be “free”. It has its on input or work, but, you’ll be the one setting the rules.

Always backup your data on Shopify, so, you can migrate to your own hosting, this Shopify “thing” will be back,…it’s a matter of when, not if.

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I believe this problem exists, because Shopify doesn’t want to institute a complex gating process like Amazon has.

nevertheless, if you purchase from an authorized supplier, your goods should be sellable under the first sale rule.

For instance, I sell toys. If I want to sell Mattel, I have to use one of their five authorized suppliers. If I want to sell Lego, their ungating process is more strenuous.

If Shopify doesn’t figure this out, they will see a mass exodus from their platform, possibly coupled with a class action lawsuit.

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In a recent discussion with my suppliers, this situation can be overcome if your supplier will assist in getting your store approved. They can write letters and help negotiate with manufacturers in your behalf.

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I just got hit with this but because they need to see receipts from authorized wholesaler. Thank God we do, we actually only buy from authorized reseller in Japan. But all the invoiced are in Japanese, at least our company name is in English and all our membership cards from the authorized wholesaler has been attached to the link they told us to upload the docs. I will update you what’s up. I’m a little nervous and worry because you never know what to expect from shopify.