The scale of the unauthorized seller problem
Brian opened with data from a survey his company Enceiba conducted among several hundred B2B manufacturers. When asked whether resellers were selling their products on Amazon, nearly 70% said yes. When asked whether they knew who those sellers were, over 70% said they did not.
He used Milwaukee Tools as an example of a major brand with significant unauthorized presence on Amazon. One of their top-selling products, generating over a million dollars annually on the platform, had nearly 50 resellers listed, many with names suggesting they were not authorized distributors. Brian noted that this situation is representative of what happens when a brand does not actively manage its marketplace presence.
The real costs of losing control
Brian outlined four categories of harm from unauthorized sellers. First, retail price erosion: unauthorized sellers typically compete by dropping prices, since they have no other differentiation. Second, channel conflict: authorized distributors see lower prices on Amazon and push back during contract negotiations. Third, incorrect product information and sometimes counterfeit goods reaching customers. Fourth, opportunity costs from lost revenue and margin that flows to unauthorized parties instead of the brand.
This is the perhaps most acute example of losing control of your brand online.
Brian Beck, Master B2B
Why this matters for buyers too
Andy pushed back initially, asking why a buyer should care if the seller is authorized, since more options seem better. The hosts brought in John Groa, a partner at KJK who runs the firm’s brand enforcement practice, to address this point.
John argued that the consumer protection angle is underappreciated. An unauthorized seller may be selling product that was improperly stored, damaged in shipping, or even counterfeit. For products like power tools, supplements, or batteries, this creates real safety risks. He cited the example of motorcycle helmets sold through Amazon that turned out to be fraudulent, with documented cases of injury.
If I am someone who is invested in my brand, I do not want just any Joe off the street being a quasi ambassador for my brand.
John Groa, KJK
Why manufacturers do not act
The hosts shared a LinkedIn poll asking why B2B companies fail to protect their brands online. The top answer was that companies do not feel they have a way to enforce or police. The second was lack of executive alignment. Almost no one cited lack of intellectual property protection or fear of backlash.
John explained that many manufacturers do not realize they have enforceable rights in their trademarks and copyrights, even if their products are not patented. Others fear getting sideways with Amazon or with their own distribution channels. Budget allocation is another barrier, as enforcement costs often fall awkwardly between legal and e-commerce departments.
What enforcement looks like
John described a typical enforcement program: monitoring marketplace listings, sending cease-and-desist letters, and escalating to litigation only when necessary. He noted that most unauthorized sellers stop when confronted with legal action, and word spreads through reseller communities when a brand is actively enforcing.
If you are not doing anything, I would argue doing something is better than doing nothing. A lot of companies would be surprised at how much progress they can make.
John Groa, KJK
He also emphasized the importance of consistency. Selective enforcement can invite antitrust arguments, so brands should have a documented program and apply it broadly, even if they prioritize the most problematic sellers first.
Amazon’s role and evolving stance
Brian noted that Amazon has historically positioned itself as a marketplace and has been reluctant to intervene on authorization alone. However, when consumer safety is raised as a concern, Amazon becomes more receptive. He mentioned that the Consumer Product Safety Commission has recently moved toward classifying Amazon as a distributor, which could increase Amazon’s legal exposure for products sold through its marketplace.
John confirmed that his firm has a working relationship with Amazon and that manufacturers who frame their concerns around consumer safety tend to make more progress than those who focus only on authorization status.
What B2B manufacturers should take away
The practical message was that brand protection is achievable and does not have to involve expensive litigation. A monitoring and cease-and-desist program can make significant progress. Manufacturers who invest in their brands through advertising and distribution should treat enforcement as part of that investment, not as an afterthought.