Amazon's new policy allows only Authorized Apple Resellers on the Marketplace

Some small businesses are going to have to pivot quicky, get authorized, or take a hit with this new agreement.

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Some marketplace dealers are about to take a massive hit to their business. Due to a new agreement, only authorized resellers are able to sell Apple products. Those that have built up their marketplaces on Amazon by refurbishing Apple products will have to contact the company to apply for classification as an authorized reseller.

Computer refurbisher John Bumstead shared an email with Motherboard that broke the bad news. The email reads as follows:

“As part of a new agreement with Apple, we are working with a select group of authorized resellers to offer an expanded selection of Apple and Beats products, including new releases, in Amazon’s stores,” the email says. “You are receiving this message because you are currently selling, or have previously sold, Apple or Beats products. Your existing offers for those products will soon be removed from Amazon’s online store in the United States. Please contact Apple if you would like to apply to become an authorized reseller on Amazon.”

This change is part of a previously reported deal stricken by Apple and Amazon. The deal expands the official Apple product offerings on Amazon, but it doesn't include the HomePod and also shuts down independent resellers that don't get Apple authorization.

“This is what every Amazon seller has been dreading,” Bumstead told Motherboard. “There are hundreds if not thousands of small businesses that do repair and refurbishing, so they’re going to take the biggest hit.” The publication also spoke with a law professor, Aaron Perzanowski, and he believes this is a "troubling development."

“Given Amazon’s dominance as an online retail marketplace, its decision to disregard the first sale rights of resellers will significantly limit consumer choice," Perzanowski says. "The fact that this move was demanded by Apple makes it even more problematic. What we see here are the world’s two most valuable companies engaging in a coordinated assault on the lawful resale of consumer devices.”

There's an opportunity for these resellers to go through the Amazon reseller authorization process with Apple, but it isn't clear what the criteria will be under this new deal just yet. Stay tuned to Shacknews for additional updates.

News Editor

Charles Singletary Jr keeps the updates flowing as the News Editor, breaking stories while investigating the biggest topics in gaming and technology. He's pretty active on Twitter, so feel free to reach out to him @The_CSJR. Got a hot tip? Email him at Charles.Singletary@Shacknews.com.

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