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How to Not Get Sued on Amazon (Importing ILLEGAL Items from China) & Protect Yourself

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Learn the 3 common reasons people get sued on Amazon (and how to avoid them). ►► Free $10,000/Month ebook: http://wholesaleted.com/4-step ►► 7 Things to Do BEFORE Selling on Amazon: https://youtu.be/66eeFdjzsQU ►► How to Not Get Sued When Dropshipping: https://www.youtube.com/watch?v=DtEkAyKapds When selling on Amazon, there a 3 common reasons that people find themselves getting sued. Here is how to avoid them: #1: Your Product Hurts Someone (Or Property) & They Sue You For Damages If your product hurts someone, then they could potentially sue you for damages. This is particularly relevant in the USA which doesn’t have a public healthcare system, and the USA is the biggest online marketplace for Amazon. This is why Amazon requires that, if for 3 months, your sales exceed $10,000 in revenue, you are required to get insurance for at least $1,000,000 in coverage. Prior to this though, Amazon does not require you to get insurance. The easiest way to safeguard yourself against getting sued for this is to avoid products that are a potential risk. Anything that includes blades, heating elements or sharp edges is going to have a higher risk over simple items (the example used in this video of a “simple item” is a headphone case). This also has the advantage that insurance for “simple items” is going to cost less than for riskier items. If you start out with a simple, less risky item, you’ll also be able to lower the cost of insurance for future “riskier” items by consolidating insurance (the more items you have insured, the cheaper it usually is to insure them as there is a discount). #2: Your Product Contains Trademarks or Copyrighted Images When manufacturing and importing products from China, you are going to have access to a lot of products containing copyrights and trademarks. In the video, the example used is that on Alibaba there are a lot of different items containing Mickey Mouse (the character is protected under both copyright and trademark law). Unfortunately, a lot of people make the mistake of thinking that because companies are producing and selling these items, that they have the right to do so. This is not the case. They aren’t producing/manufacturing because they have the right: they are doing it because they know that they can usually get away with it. Internationally, copyrights are usually honoured. China has also agreed to honour them. However, they are rarely enforced which is why infringement is so rampant (despite being illegal). The reason it is so rarely enforced is because culturally in China, if something is easy to copy and distribute to the masses, this is considered a good thing to do. In the West, the cultural perspective is different: we view that the rights of the individual are more important. So do not import items breaking copyrights/trademarks. Your products will be taken down off of Amazon, and you are risking having legal action taken against you. #3: Your Products Violate Patents Something interesting about patents is there is no such thing as an “international patent.” While countries will usually agree to honour copyrights, there is no protection for trademarks. You need to file your Patents in each individual country. This means that Chinese manufacturers regularly product items that are protected by patents in other countries like the USA. In the video, an example of a product that is patented in the USA is one by Wigzi. It has patented dual dog leashes that contain the following features: * Has the leashes attached to a rotating wheel that is separate from the handle (to stop the dogs getting tangled). * Has individual triggers for each leash, so you can control the length for each one. * Has the leashes colour-coded to match the colours of the triggers. There are several manufacturers on Alibaba that are producing dual leashes that have these exact same features. And as there is no active patent for this style of dog leash in China, they are allowed to sell them. But if you were to import them to the USA and sell them on Amazon.com it would be a big mistake as Wigzi would get your listing taken down, and could potentially sue you. When conducting product research, look to see if there are any other similar items on Amazon listed. If the item has unique features and there are no other products like it listed, there is a good chance that it is patented. You can then go to the website owned by the company listed as the seller and see if they have any patents on their site. Usually, they’ll have them listed very clearly. You can then go to Google patents and check to see if the patent is still active.
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Text Comments (86)
Wholesale Ted (9 months ago)
Hey everybody! If you have any questions please feel free to ask them. I'll be answering as many as I can 😃
Gerald Davis (3 months ago)
Copyright is a little bit of a problem for WIsh.com they don't like me selling certain copyrighted products that ok to sell on ebay.
justin time (9 months ago)
Hi i have a few questions to ask an was never 100% sure where to find the answer but you seem to know what your talking about so i thought id ask. 1. My question is i was wondering is there any paperwork a dropshipper would have to worry about ? 2. I live in canada an plan on selling in the US an i think i dont need to worry about a sales tax since im not a US resident right ? 3. Also i wanna keep the bussiness up an running with no hold backs i dont wanna get shut down or even sued for the matter of not having correct paperwork that i dident have or i even needed to start with, if i do or not im hoping you know the answer. 4. I wanna do this right in one go if i can my last question, is it better for a newbie dropshipper to just open there own store instead that way there is no competition ? an if thats the case what would be better to go with for making a store/website shopify, godaddy, or any others that you may reccomond of your personal choice ? im really interested in starting an doing this bussiness i signed up with salehoo an learned a bit about it but i think your videos are better because you explain it so well an show how to do it in video tutorials which i personally like better i learned quite a few tactics from you that i wanna try very soon but there were a few things im still uncertain of before i start. If you could get back to me or answer these few questions for me i would be very thankful for the time an knowledge.
David Burr (9 months ago)
Hi, Sarah! What do you recommend using? A credit card or a debit card? Do you recommend using a credit card for setting up the store and then a debit card for purchasing from aliexpress and for gathering all the money from the customers? What's your opinion on this? Thanks a bunch!
Proving you wrong daily (9 months ago)
Wholesale Ted hi Sara, if you have two options for shipping, ePacket & ePacket+, which shipping option will u choose and why? Thanks!
MMG-6 (3 months ago)
A alibaba supplier has told me he has patent on the item. However, he has said I should check to make sure there are no US patents. Am i wrong to think, as they are the original manufacturer and they give me permission to sell. All is good? and no one else can really patent their product?
Aaryan S (2 months ago)
Hey buddy you got it...I have the exact same point !!!
ananya mohanty (3 months ago)
How about importing jewellery from China ? Are there any laws regarding the metal used?
noktum (3 months ago)
We are in trouble, Trump is now going after the shipping https://www.wsj.com/articles/trump-administration-moves-to-end-deep-discounts-for-packages-from-china-1539791629?redirect=amp#click=https://t.co/tbMgHrKdeN
Viki Ye (4 months ago)
Humm...I think different country has different law, it does not apply to all countries
Guardian of Justice (4 months ago)
Entertaining amazing and very very informative much success for you all
Christine Shannon (5 months ago)
I love your top, it's pretty. Thanks for the information you have shared!!!
Plopsa 2 (7 months ago)
hey! how do you know if a product has a trademark or a patent?
1292liam (8 months ago)
You sell on which Amazon country ?
Ethans Fun House (8 months ago)
Wow you forgot the most important thing. Selling items which are not certified for legal use in the country you are selling to. Electronics and electrical items must be tested and certified for use in that country. Penalties include massive fine and imprisonment.
Eileen the Crow (8 months ago)
so basically i can't sell anything people actually want to buy lol.. How does this apply to things related to a brand, but aren't actually the main symbols of them? an example wold be instead of Mario from nintendo, if its a notepad that looks like one of the blocks in the game, or a mug that looks like a pipe from the game? Also what about unique fan art, I believe artwork featuring the brand elements could still be trans-formative enough to be protected from the original creators? like a tshirt with a drawing of mickey mouse skateboarding or something?
Neil Chang (9 months ago)
THANK YOU SARA
Is there a work around for selling replicas on my shopify store
Wholesale Ted (9 months ago)
Nope - it's illegal and your store will get shut down: https://www.youtube.com/watch?v=DtEkAyKapds
кот мяу (9 months ago)
дурочка
TRiaNO (9 months ago)
I"m a member in your drop shipping club i tried your method of selecting niche, i tried the exact same words you used in your video and facebook couldnt find any result not in 2018 or any year for that matter, care to explain ? update : the only way i could do it is to search in the "all" section then scroll down where it says "public posts" and click it, i think you ought to mention that in your cours videos
justin time (9 months ago)
Hi i have a few questions to ask an was never 100% sure where to find the answer but you seem to know what your talking about so i thought id ask. 1. My question is i was wondering is there any paperwork a dropshipper would have to worry about ? 2. I live in canada an plan on selling in the US an i think i dont need to worry about a sales tax since im not a US resident right ? 3. Also i wanna keep the bussiness up an running with no hold backs i dont wanna get shut down or even sued for the matter of not having correct paperwork that i dident have or i even needed to start with, if i do or not im hoping you know the answer. 4. I wanna do this right in one go if i can my last question, is it better for a newbie dropshipper to just open there own store instead that way there is no competition ? an if thats the case what would be better to go with for making a store/website shopify, godaddy, or any others that you may reccomond of your personal choice ? im really interested in starting an doing this bussiness i signed up with salehoo an learned a bit about it but i think your videos are better because you explain it so well an show how to do it in video tutorials which i personally like better i learned quite a few tactics from you that i wanna try very soon but there were a few things im still uncertain of before i start. If you could get back to me or answer these few questions for me i would be very thankful for the time an knowledge.
mbiwan tarh (9 months ago)
Hello , i would like you guys to please review my store and let me know what i need to improve on my product pages and store as a whole " https://yotie.shop/ " . I get about 60 to 100 visitors a day from facebook ads, but do not make any sales and these are their product pages 1 . https://bit.ly/2HTOep5 2 . https://bit.ly/2JCvM1d 3 . https://bit.ly/2HDaFeN What do i need to improve on my product pages or in my store in general to begin making some sales?
mbiwan tarh (9 months ago)
Hello , i would like you guys to please review my store and let me know what i need to improve on my product pages and store as a whole " https://yotie.shop/ " . I get about 60 to 100 visitors a day from facebook ads, but do not make any sales and these are their product pages 1 . https://bit.ly/2HTOep5 2 . https://bit.ly/2JCvM1d 3 . https://bit.ly/2HDaFeN What do i need to improve on my product pages or in my store in general to begin making some sales?
BaSick (9 months ago)
Why are you not running ads on your video? :(
Federico Czerwinski (8 months ago)
Wholesale Ted 👏👏👏👏👏
Wholesale Ted (9 months ago)
Because I don't want people to be distracted and don't need the money 😉
Paolo Sgura (9 months ago)
Hi Sarah, thanx for the great value in your videos. I assume that your advices in this video stay valid for any other form of ecommerce, not just amazon. Btw, what can you say about using pictures fom a provider where there are actual models showing clothes? I guess the provider, who probably doesn't even own the pictures, wouldn't really mind me using it. But what about the models? Is it safe enough to cut the model's head off the picture? I immagine that can at least avoid getting sued by the model... I would love to know more about this!
Wholesale Ted (9 months ago)
This is valid for other types of ecommerce, yes, although different ones have their own quirks (like my similar video for dropshipping talks about the legal issues surrounding that - https://www.youtube.com/watch?v=DtEkAyKapds) And yes, if you use their images won't mind you using them. I talk about that in my dropshipping video on avoiding getting sued - check it out :)
George Ilavsky (9 months ago)
So I just watched the “ hoe not to get sued while drop shipping”. That is what I am doing. This is where I get confused. So how would you know if the “self stir mug” would be trademarked or patented. I know you can check google patents but it can sometimes be difficult to find. I wanted to sell a pet water bottle but not sure if it’s safe or not.
Wholesale Ted (9 months ago)
If something has defining features like "self stirring" and "mug" then that is pretty easy to find via the patents - I wouldn't overthink it!
CSE (9 months ago)
In your last example.. What about if you just sell the item to countries where there is no patent?
CSE (9 months ago)
Fantastic! Thanks so much :-)
Wholesale Ted (9 months ago)
Then that would be absolutely fine too. Patents & trademarks do not have international protection (although often trademarks are also copyrighted - which of course does)
MilkCap (9 months ago)
You don't. Anyone can sue you for any reason.
EL MECHE TV (9 months ago)
Advice: don’t sell to dumb people, well that’s just 90% of the world.
Ant Laud (9 months ago)
oh I don't no. headphone case in the wrong hands who knows what could happen. I knew a guy once who ended up in casualty after brushing his teeth. He needed stitches and everything.
El Va (9 months ago)
Hey pretty, I really like you alot and am here Spain pls I want to get in contact with you, I do like you to walk me through a successful Shopify, am Willing to be ur students, where can I chat you up? I really need you pls. Email me
Movie Magic (9 months ago)
Lisp
TonyLittleNutz (9 months ago)
Do robots have sex?
Manny XO (9 months ago)
Does this apply to dropshipping?
Wholesale Ted (9 months ago)
No - I have a separate video on avoiding being sued when dropshipping: https://www.youtube.com/watch?v=DtEkAyKapds
Unique Delight (9 months ago)
Miss Sarah do you think dropshipping on AliExpress is still going to be viable for some time? If AliExpress starts marketing agressively in the west, then our model would fall apart.. Russians already know about AliExpress and so it's not wise dropshipping to Russia from it. This is why I want to do Amazon dropshipping and private labelling as soon as I can.
Wholesale Ted (9 months ago)
Even if that did happen, it wouldn't stop Aliexpress dropshipping. It would probably require a greater level of sophistication with photos/ads but you could still dropship from Aliexpress. People "dropship" from Amazon/eBay/other online retailers all the time and people still purchase the items. It's all about impulse buying - getting the customer to take action WITHOUT price-checking.
commander woody (9 months ago)
To the dumb ass who trys to sue me because they stuck a fork in the toaster , I'd love to see them win.
commander woody (9 months ago)
Wholesale Ted haha didn't think you'd respond there . You do have a point though , anyone can sue for basically anything. . .there have been people who have sued for as small as a dollar so XD
Wholesale Ted (9 months ago)
Haha I agree. I don't think that they would win 😅
Atul Dwivedi (9 months ago)
Hi. I want to start dropshipping on shopify,I heard that a paypal business account is needed,please tell me even there is need of business bank account,or I may use my personal bank account,I from India,I dont have credit card.... So please reply me I am waiting.......
jhon pedrtito (9 months ago)
Your so beutifull
CSE (9 months ago)
*you're just a dumbass - dumbass :-)
TonyLittleNutz (9 months ago)
Correct punctuation and spelling should be implemented in a three word sentence. Otherwise, your just a dumbass.
Andromeda (9 months ago)
In my country is it very complicated! You can only form a company if you rent a commercial office.
Reynard Baillou (9 months ago)
No go and there you go. Sara rhymes. 😄
bluenetmarketing (9 months ago)
Your health bills are NOT covered by the government in New Zealand. They are covered by all of the sucker tax payers in New Zealand. Keep in mind that there is no government on Earth with money that it didn't first steal from its sucker tax payers.
twes619 (9 months ago)
HEY SARAH, I read your ebook several times. How do your Amazon dropship products compete with fba products with 2 day shipping? I'm torn between starting my own dropshipping or doing Amazon dropshipping per your ebook. Secondly, what about the random off brands from sellers? Every item has a brand, how do you know if it's protected when scanning for new products to sell? Thanks!
Chris McFarland (9 months ago)
Thanks Sara! What about legal issues for images that I use from Amazon? I have a Shopify store and I dropship from other people's Amazon listings that are shipped by Amazon. I'm nervous about lawsuits that might be waiting around the corner. Any advice on this topic? Thanks!
Outstanding Merit (9 months ago)
Another good video! You pick really good topics to create a video about. Keep it up!
Isira Pramodith (9 months ago)
can i sell a product that is "as seen on tv" on amazon.....will i get sued if i source it from china😃😃😃😃
Unique Delight (9 months ago)
You could do more videos on Facebook ads, like tips.. marketing Is the main thing we have to do really.
Unique Delight (9 months ago)
Great video, thank you, thumbnail is scary though
Jackson Hook (9 months ago)
Hi Sarah, what would you recommend, setting up a LLC in USA or in NZ when selling on amazon.com.
Wholesale Ted (9 months ago)
In New Zealand if that is where you are a resident :)
ezumach (9 months ago)
I watched part of this with no volume after smoking some weed. Her facial expressions are brilliant
A F (9 months ago)
ezumach ha
Unique Delight (9 months ago)
ezumach lol ain't that right.
jbdyoni (9 months ago)
Great video as always! I have a questions about the products that could potentially hurt someone. If you put some of kind warning or disclaimer in the product description about the potential risks of the products or safe operating procedures (even though it would be obvious to most people) would that cover you, or would you still open to being liable? Like for example with the toaster, if you said "Do not insert any objects into the toaster other than baked goods" and "unplug from the power and allow to cool before cleaning or removing stuck burnt toast" or "don't take into a bath or pool with you..." or something along these lines would that help? I suspect this may be a bit of a grey area and might not be easy to answer without legal aid but I thought I might ask :)
jbdyoni (9 months ago)
That's a really good point, probably best to avoid any legal disputes all together, thank you for the answer
Wholesale Ted (9 months ago)
My guess is that for general stupidity (like putting a fork into a toaster) you won't be vulnerable, but I'm not a lawyer: and something to keep in mind is that even if you will win the lawsuit, if someone decides to pursue because they are mad, it will still be costly in the meantime. It's definitely easier to focus on simple products as a beginner.
Amir Khan (9 months ago)
Hey Sarah! Thanks for all the info!! I typed in for many products on google patents, I feel like every product in market out there seems patented? Is there any better and easier way to find out if a product is patented or not? Thanks
Amir Khan (9 months ago)
Thanks!
Wholesale Ted (9 months ago)
There are a lot of patents, but most patents are not active anymore. Most products are not patented - only unique products (like this dog leash).
sjadexo (9 months ago)
Hey Sarah! new subscriber ( also from NZ) and have watched so many of your videos already, they are so helpful and informative. when i set up a dropshipping store on shopify is there a way to get around adding in your address? or does the customer not see this.
Wholesale Ted (9 months ago)
Your address isn't published - it is for Shopify's internal process only. It is nice to have a business address if possible though so that you can list it and build trust with your customers that way.
DeJaYz 01 (9 months ago)
No Amazon for me..not yet anyways
IrmiRose (9 months ago)
Hi Sara, I've seeing in passing that it might be a good idea to trademark your private label product on Amazon. Do you recommend that so that people can't copy your product and hijack your listing? Can you speak to this? As a side note, thanks for all the great content. I cringe sometimes at how much gross sexism you have to put up in these comments and I just want to express that I see it and feel for you. I know you ignore it, but I can't believe how different the comments are for a video hosted by a woman versus the men that do these types of video. No one ever comments on their physical features or makes comments about their way of speaking. Just want to say that, in solidarity.
Wholesale Ted (9 months ago)
Well I usually respond to any serious questions I notice. Answering questions is very time-consuming, so I prioritize it for a few days when a video releases and after that, answer as many as I have time to get to 👍
EgoShredder (9 months ago)
Maybe it is mostly males who watch ecom videos, and hence why excitable comments appear on female videos and not on male hosted ones? As with anything you just respond to what you like, and ignore the rest.
IrmiRose (9 months ago)
Thank you for answering! I understand it much better now.
Wholesale Ted (9 months ago)
You can't trademark your product on Amazon (you do that through the official government channels) but you can register your product as a brand. It is a good idea to do it, though it's a myth that it stops hijackers. Even if your product is registered as a brand, people are still allowed to resell it and list themselves as a seller. It's just that there is no way usually for them to have access to your product, since you haven't sold it to them at wholesale - so they are selling knock-offs and not your actual item, so you can get them taken down as-per normal. Hijackers aren't a big issue because they are so easy to be removed, they are more an annoyance than anything!
George Ilavsky (9 months ago)
So I sometimes see products on sites like pexda, ecomhunt etc, that have “as seen on tv” products. I would assume those aren’t a good idea to sell. I think the patent on freaks me out the most. All my products have multiple sellers on amazon but I still can’t find it it is patented or not. Even to find the patent I would think I would need the original name. What if I don’t know the original name or creator? And this video is a must have.
Federico Czerwinski (8 months ago)
I have a question regarding this. I know of a succesfull product where I live, and AFAIK, no one else (but them) is selling that product here. Their website doesn't have any copyright or TM labels. I check on Alibaba and I can find the product easily. Now, how do I know if the product in Alibaba is a knock-off or, the local website is simply buying that product in Alibaba? I'm concerned about buying and start selling that product myself as well and getting sued? Any idea? Guidance? Cheers!, Thanks Sarah.
George Ilavsky (9 months ago)
Wholesale Ted thank you! Well said!
Wholesale Ted (9 months ago)
If they are selling the actual original product themselves that they purchased at wholesale, this is usually fine. If it is a knock-off... then no! You can usually sell branded products (reselling is fine) but you can't copy it/make your own version of it if it's protected.
Larry the lobster (9 months ago)
Do you know of any free ebook for affiliate marketing? Thx👍😊
Wholesale Ted (9 months ago)
Hi Larry, this is actually a highly requested video so I'm looking to make something on it in the near(ish) future - thanks!
jim sharp (9 months ago)
Great advice , thanks heaps

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