Brand Authorization Letter: A Definitive Guide for 2023

Overview

Trust-building is the key to achieving success in online business. It is critical for e-commerce platforms and individual sellers to earn the trust of their clientele to stay in the business for the long term.

Online marketplaces have devised several measures to make sure that the vendors selling products on their platform only supply authentic products and they have the right to sell them. A brand authorization letter is one such tool that ensures the seller is authorized to sell the product of a particular brand.

You should obtain a brand authorization letter before listing a third-party brand's products online. In this blog, we will help you understand what a brand authorization letter is, the significance of the document, and how to craft it.

What is a Brand Authorization Letter?

A brand authorisation letter, brand authorization certificate, or brand approval letter is a licensing agreement between a brand owner and a seller. The letter is issued by the brand owner confirming that the specific individuals or entities, typically sellers or distributors, have the legal right to sell the brand's product on their behalf. If you wish to sell branded materials online, you need to obtain a brand authorization certificate from the concerned brand.

Purpose of a Brand Authorization Letter

A brand authorisation letter serves multiple important purposes, including: Authorization: The key purpose of this document is to grant legal authorization to a seller, vendor, or distributor to use the brand's identity and sell its products. This letter lets the seller use the brand's name, logo, and other brand identifiers while selling the brand's product. Product Legitimacy: This letter ensures that the products being sold are authentic. It protects the customers against receiving counterfeit products.

Brand Control: This document helps the brand owners maintain some level of control over how their brands are represented and sold in the market.

Legal Standing: The certificate provides a legal basis for selling and distributing the brand's products. It ensures that the seller or distributor operates within the boundary of trademark and intellectual property laws.

Consumer Trust: As stated before, customer trust is everything in an online business. This letter assures that the consumers receive genuine products from the seller.

Brand Authorization Letter for Flipkart

Flipkart, one of the largest online marketplaces in India, has introduced a brand approval program to ensure the quality of the products available on its platform. To list your products on Flipkart, you must obtain brand approval from the company's brand regulation team. As a part of the process of obtaining approval, you will have to submit a brand authorisation letter if you are selling products manufactured by other brands.

Brand Authorization Letter for Amazon

Like Flipkart, Amazon allows you to sell other brands' products or use their identity only with the required authorization. When you list a product made by another brand, Amazon asks you to submit any of the following two documents:

1. At least one purchase invoice for products from a manufacturer or distributor

2. One letter from the brand authorizing you to sell their products

Amazon will approve your listing only after examining the authenticity of your document. However, you must remember that Amazon may ask for additional documents based on the nature of the product you want to sell on its platform.

Brand Authorization Letter for Paytm

While listing a product on Paytm Paytm E-Commerce Pvt Ltd (branded as Paytm Mall), the platform asks you whether you own the brand or have the required authorization to sell the products made by the brand. You must submit either a Trademark Certificate or a brand authorization certificate, depending on your answer. Paytm approves the listing only when the authorization letter is valid for at least 60 days from when you raise the approval request.

Brand Authorization Letter Format

Amazon, Flipkart, or Paytm Mall do not prescribe any specific brand authorization letter format. However, to get the approval without delay and avoid legal implications, use the following format

1. The letter should be on the brand's letterhead.

2. Include the brand's full name, logo, address, and contact details.

3. Provide the seller's details to whom it is issued.

4. Mention the Brand Trademark Number and Class.

5. Specify the authorized products and online marketplaces for selling.

6. Include validity and authorization number (optional).

7. A clear and concise body copy

8. Terms and conditions stating the scope of the agreement

9. Signature and seal of the issuing authority.

Wrapping Up

Sellers require brand authorisation letters to sell the products made by other brands legally. The online marketplaces ask for this authorization letter to ensure the products of their platforms are authentic and the seller has the required permission. It protects the end customers' interest and helps the online marketplaces avoid legal hassles. An authorization letter must be written in clear language, mentioning all the essential details. Ambiguous language, missing information, and poor formatting may lead to rejection of the seller's approval request. If you are an online seller trying to figure out how to get approval for selling other brands' products, GoNukkad is your friend.