What to Do If Amazon Restricts Your Best Category

*Click to read the affiliate disclaimer*

(Last Updated On: )

Amazon went from letting people sell whatever they wanted on their platform to gradually restricting that freedom. While we get the green light on a lot of product types, they’re not too keen on letting everyone sell alcohol on their site without the proper reassurance first. It’s not even just extreme examples like that. Amazon makes it difficult for third-party sellers to list radio-controlled toys, nappies and even new Disney DVDs on their site.

This product ‘gating’ is one of the things that helps to add to the diversity of the site, but adds to the frustration of sellers that just want to be able to sell whatever will make them a reliable profit.

From time to time, Amazon decides that it will allow sellers access to categories that may have been gated before. However, they also work the other way too, and occasionally decide that once-safe categories will only be accessible by those that can supply approved wholesaler invoices, if at all. For online arbitrage sellers – who primarily purchases their goods from other online stores – it can mean that it’s the end of the road with that category. But if that category happens to be your most lucrative, you’re going to need a solution – and fast.

Here’s what I advise you do, if you ever get in that situation:

Find a Wholesaler

As time has gone on, I’ve gone from strictly online arbitrage, thrifting and in-store purchases to dabbling with a bit of wholesale sourcing. The margins aren’t nearly as good as what I’m capable of with online arbitrage, but it means that if I need to get an invoice for some products, I will be able to pull up some evidence that could help me keep my foot in the door. In doing so, it’s also opened me up to be able to get ungated in other categories, as the process is often the same.

Dial Up Your Sourcing

Finding a wholesaler may not be a plausible option for you. A lot of wholesalers want references for you to get on the books, and that is a barrier that many can’t overcome. In that case, you need to take even more time to ensure that you’re sourcing as many different products as possible, if this happens to you. If one category is now off-limits, you need to go back to the drawing board and figure out a new niche that you can exploit.

Consider Other Amazon Options

Perhaps online arbitrage isn’t for you, after all. It may be worth trying out private label instead and pursuing that, as it’s a lot less likely that you’ll end up getting the rug pulled from underneath you in terms of category gating. If you sell a home or toy product, for instance, it’s very unlikely that you’ll ever have those categories gated out of the blue.

Don’t Let It Happen Again

Without a doubt, the most effective way of dealing with the situation is to make sure it was a one-time thing. You can’t let it happen again. Amazon restrictions can really damage a business. Some won’t recover from a sudden loss of their favourite product or category and may have to quit Amazon altogether. Don’t make it a possibility in your case. Vary your sourcing in every way you can. Use software, sheets, or whatever useful tool to cover your back.