Is Amazon Reselling Dead? Private Label Vs Wholesale, Online/Retail Arbitrage, Dropshipping

Hey! If you’ve been selling on Amazon for a while (or are just starting out), you’ve probably noticed that the reselling landscape has changed dramatically.

What used to be a viable and often lucrative business model (whether through wholesale, online arbitrage, retail arbitrage, or even dropshipping) now comes with a lot more headaches.

In a recent video on my YouTube channel, I sat down with David Miller, an experienced Amazon attorney, to discuss the current state of reselling and whether it’s even worth pursuing.

In this article, I’ll break down our conversation, covering why reselling has become so challenging, the risks involved, and why private labeling may now offer a safer and more sustainable path forward.

Need help with IP complaints or account issues?

Get in Touch with David!

1. Website: https://www.damlawfirm.com/

2. YouTube: DAM Law Firm YouTube Channel

3. Instagram: @davidallenmillerlaw)

4. TikTok: @davidallenmillerlaw

5. Facebook: David Miller - Facebook

6. LinkedIn: David Miller - LinkedIn

7. Email: David@damlawfirm.com

8. Phone: 646-760-2844

Watch All My Videos With David Miller

Is Reselling Dead?

David summed it up this way: “I wouldn’t go so far as to say it’s completely dead, but it is certainly way more difficult than it’s ever been.”

Reselling isn’t impossible, but it’s a lot more complicated than it was 5–10 years ago.

Over the past several years, Amazon has tightened its policies and increased enforcement, which means sellers now face:

1. More frequent requests to verify suppliers.

2. Intellectual property (IP) complaints from brands or their lawyers.

3. A much higher risk of account suspensions.

Even if you’re working with good suppliers and selling authentic products, Amazon can still reject your documentation, leaving you with little recourse.

Here’s a practical guide that shows how to reduce the kind of IP issues: How To Avoid Intellectual Property Complaints On Amazon

The Supplier Verification Problem

Here’s where a lot of resellers get stuck.

If Amazon flags your account and requests supplier documentation, you need to provide invoices or other proof.

Even if your products are legitimate, Amazon acts as both judge and jury in deciding whether your documents are “good enough.”

David explained it in these words: “All you can do is provide Amazon with that documentation, and then Amazon serves as judge and jury. They can say, ‘No, we don’t think this is verifiable.’ Even if there’s been no complaints and you know your products are authentic, Amazon can still deny it.”

This is especially tricky for sellers who:

1. Work with secondary distributors (not directly with the brand).

2. Source through gray market channels.

3. Don’t have a fully traceable supply chain.

You can also look at this walkthrough if you want to understand how Amazon checks seller identity during risk reviews: How To Pass The Amazon Seller Identity Verification Video Call

Why Resellers Face So Many IP Complaints

Reselling also comes with a high risk of intellectual property (IP) complaints.

Some brands simply don’t want third-party sellers listing their products, even if it’s technically legal.

They hire law firms to send takedown requests or IP claims, which can quickly escalate into listing removals or account suspensions.

As David noted: “On the reselling side, what about lawyers contacting you for selling a product they want you to stop selling? You get IP complaints. It’s not that there’s no risk at all with private labeling, but the risk is a lot lower.”

For many sellers, this constant battle isn’t worth it anymore.

Watch All My Videos With David Miller On YouTube

Why Private Labeling Offers More Control

If reselling feels like a constant uphill fight, private labeling might be your solution.

With private labeling:

1. You are the brand. You own the trademark and control the listing.

2. You set the supply chain. You work with manufacturers or authorized distributors.

3. You minimize IP issues. Since you own the brand, no one can complain about you selling your own product.

As David put it: “Private labeling gives you way more control. You have a trademark registration, you are the brand, you’re dealing with authorized distributors. Any business has some risk, but with private labeling, the risk is a lot lower.”

This doesn’t mean private labeling is risk-free, it comes with its own challenges like product development, marketing, and inventory investment; but it’s a more sustainable long-term strategy in today’s Amazon environment.

If you want a simple breakdown of how the private label model works, this guide covers the essentials: How To Make Money On Amazon - Private Label Model Explained Briefly

What About Dropshipping, Online Arbitrage, and Retail Arbitrage?

These models, especially dropshipping, are under even more scrutiny than wholesale.

1. Dropshipping: Amazon has very strict policies, and unauthorized dropshipping can quickly lead to account suspensions.

2. Online or Retail Arbitrage: It’s harder than ever to prove authenticity and maintain a clean supply chain. Arbitrage can still work on a small scale, but it’s tough to scale without frequent account risks.

Simply put, Amazon wants sellers who have full control over their products, which is why private labeling aligns better with their vision for the marketplace.

When to Seek Legal Help

If you’re already reselling and dealing with:

1. IP complaints

2. Listing suspensions

3. Supplier verification issues

It’s worth speaking to an experienced Amazon attorney like David Miller.

He’s helped countless sellers get their accounts reinstated and resolve disputes with Amazon.

Get in Touch with David!

1. Website: https://www.damlawfirm.com/

2. YouTube: DAM Law Firm YouTube Channel

3. Instagram: @davidallenmillerlaw)

4. TikTok: @davidallenmillerlaw

5. Facebook: David Miller - Facebook

6. LinkedIn: David Miller - LinkedIn

7. Email: David@damlawfirm.com

8. Phone: 646-760-2844

Final Thoughts

So, is Amazon reselling dead?

Not completely.

But it’s much harder, riskier, and less profitable than it used to be.

If you’re still reselling, make sure you:

1. Work with authorized distributors.

2. Keep clean, traceable invoices ready for Amazon.

3. Have a plan for handling IP complaints.

And if you’re tired of the constant battles?

Consider transitioning to private labeling. It offers more control, fewer risks, and a better long-term future on Amazon.

For more insights into these topics, check out my full playlist with David here.

Watch All My Videos With David Miller On YouTube

And if you need help with IP complaints or account issues, don’t hesitate to reach out to David directly.