When you’re starting your Amazon wholesale business, finding low-cost products can feel like striking gold.
The cheaper the supplier, the higher your potential profit… right?
Unfortunately, thousands of Amazon sellers learn the hard way that cheap suppliers can lead to very expensive consequences.
If you’ve ever faced an IP complaint, a listing removal, or even an account suspension, chances are… your supplier had something to do with it.
Let’s break down the hidden risks of sourcing from unauthorized or shady suppliers—and what you can do to protect your Amazon business.
The Temptation of Cheap Wholesale Suppliers
It’s easy to see why new sellers fall into this trap:

• Attractive prices
  
• No minimum order requirements
  
• Fast shipping promises
  
• No account verification needed

But here’s the problem:

If your supplier isn’t authorized, your invoice won’t hold up in Amazon’s eyes.

That great deal can quickly turn into lost revenue, stress, and account risk.

The Most Common Consequences of Bad Sourcing Decisions

When you source from unknown or non-authorized suppliers, you open the door to serious business threats:

1. Intellectual Property (IP) Complaints

Brand owners regularly monitor Amazon for unauthorized sellers.
If you’re caught selling their products without proper authorization or documentation, expect an IP complaint… fast.

2. Listing Removal

Amazon takes IP issues seriously.
A single complaint can get your product listings deactivated immediately.

3. Account Suspension

Multiple complaints or failure to resolve one can lead to full account suspension.
And once you’re suspended, getting reinstated isn’t easy.

4. Rejected Invoices

Even if you try to appeal…
Amazon will ask for supplier invoices.

If your supplier isn’t recognized, lacks business details, or the invoice looks unprofessional, Amazon won’t accept it.

What Amazon Really Looks for in Your Wholesale Invoices

Amazon’s Seller Performance and Compliance teams check for:

✅ Authorized Suppliers:
Is your supplier a recognized distributor or manufacturer?

✅ Complete Business Details:
Supplier’s name, full address, phone number, website, and other verifiable contact info.

✅ Clean and Professional Formatting:
Official invoices—dated, with full product descriptions and quantities.

✅ Proof of Authenticity:
They want to see you’re sourcing genuine products.

Amazon doesn’t care where you “found a deal.”
They care about proof, authenticity, and compliance.

Real Talk: Your Supplier Is Your First Line of Defense

Your Amazon account is your livelihood.
Choosing the wrong supplier puts everything at risk:

• Your listings
  
• Your revenue streams
  
• Your account health
  
• Your future as an Amazon seller
  

When Amazon asks for proof… your supplier’s reputation becomes your reputation.

Final Thoughts: Source Smart, Stay Safe

In the Amazon wholesale world, sourcing of products isn’t just about price.
It’s about partnerships with suppliers who understand Amazon’s strict requirements.

At Coastal Distribution, we work directly with brand-authorized distributors, ensuring that the products you buy come with the documentation and compliance standards Amazon demands.

Because at the end of the day…

Nothing is more expensive than losing your Amazon business.

✅ Stay educated.
✅ Source from trusted wholesale partners.
✅ Protect your account.

Need help finding Amazon-compliant wholesale products?

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