Online Sellers: How to Tell if a Wholesaler is an Authorized Dealer

Today I am going to explain to you what an “Authorized Dealer” is and isn’t. By the end of this article you'll be an expert.  Let’s begin!

Let’s use this Calvin Klein tank top as an example:

Every big name brand has a manufacturer. The manufacturer makes the tank top for Calvin Klein:

The manufacturer usually uses a distributor. The distributor sells the tank tops for CK by working with stores that want to sell these tanks. The Distributor is an AUTHORIZED DEALER because they work directly with CK to move the brand new merchandise as soon as it is released.

The stores that bought from the Distributor (or Manufacturer) are also AUTHORIZED DEALERS of CK. For example, of course every Calvin Klein store is an Authorized Dealer of the CK brand, however, Macys, Dillard, Saks, Bloomingdales, Nordstrom and other stores are also authorized dealers. All of the aforementioned companies have a contract with Calvin Klein (PVH Corp) to sell their merchandise

To put it simply; an Authorized Dealer has a direct relationship with the manufacturer (or distributor who works for the manufacturer).

NOW IT’S TIME FOR THE SUPER IMPORTANT INFO -

After 4 to 8 weeks the stores usually put the merchandise on Clearance. The stores continue to mark down the merchandise until final clearance. After that the store liquidates whatever stock remains to companies like us, BigBrandWholesale.com:

At BigBrandWholesale we buy merchandise in multiple different ways, but our primary method of obtaining inventory is to buy truckloads of this type of extra / leftover stock from designer stores. So, this means that we end up with Calvin Klein tank tops even though we are not an Authorized Calvin Klein dealer. BUT, because we purchase this merchandise directly from an Authorized Dealer we have “Third Party Rights”, which means we are allowed to resell the merchandise as a Third Party Authorized Dealer. And, since you are able to resell the merchandise you purchase from us, it works out great for everyone.

DOES AMAZON UNGATE THIRD PARTY DEALER PURCHASES?

If you are trying to find an Authorized Dealer to get Ungated by Amazon; sometimes Amazon Ungates third party purchases and other times they do not. If you absolutely want to be sure that you will be Ungated (well technically there is NO WAY to guarantee Ungating, ever, but if you want to come as close as possible) the best thing you can do is buy directly from the manufacturer / distributor. You will be paying much higher prices because the merchandise is coming direct from the manufacturer to you but after you get Ungated you can then purchase merchandise through alternate channels. With that being said, we have had tons of buyers get Ungated using our invoices and we have had just as many not get Ungated. If you already read our Complete Guide to Amazon Ungating you already know that the Ungating process is primarily making sure all of your paperwork is correctly filed and your Seller Metrics are high. Regardless of what company you buy through, Authorized Dealer or Third Party Dealer, you will never get Ungated if you have not met the Amazon Ungating Requirements.