As brands prepare for the new year, many are rethinking their marketplace strategy—including winding down relationships with certain authorized third-party sellers. But ending a marketplace relationship isn’t as simple as sending a notice. The right approach requires careful planning, legal counseling, and close coordination across your organization.
There are several steps to ensure a successful transition, such as:
Have you formally authorized your 3P marketplace sellers in writing or orally? What do your contracts or emails say about online marketplace sales and termination? Legal can be particularly helpful with this one, navigating the proper way to send the termination notice or assessing the risk of termination.
Does your 3P seller have other sales channels, or will ending marketplace sales end the relationship entirely? In some cases, state dealer termination laws may apply—especially if the seller has invested in your brand. These laws can require extended notice periods or impose other obligations, and a lawyer can help you navigate these complexities.
Setting a realistic sell-through period is crucial, particularly if your products are already in marketplace fulfillment centers. Legal can help you communicate expectations clearly and structure the transition to help avoid disputes.
Make sure your sales, legal, and purchasing teams are on the same page. Adjust purchasing protocols and maintain open communication to ensure a smooth transition.
After deauthorization, ongoing monitoring is essential. If issues arise—such as non-compliance with sell-through dates or sourcing from unauthorized channels—legal counsel can advise on enforcement options and next steps.
Vorys eControl has helped hundreds of brands navigate these transitions the right way. Our team will guide you through every step—from reviewing agreements and crafting communications to counseling through the transition. If you’d like to discuss your strategy, please contact your Vorys attorney or reach out to Jessica Cunning at [email protected].
