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Why Amazon Sellers Need A Trademark

Thu Jul 25, 2019 Amazon Brand Registry

As you may know, we work almost exclusively with Amazon sellers and they’ve asked us time and time again: Do I need a trademark? We have always responded with a resounding YES. Today, we want to share with you our three main reasons why Amazon sellers need a trademark.

Get Amazon on your side

It’s common for Amazon sellers to encounter counterfeit issues or situations where your product content is changed by a third party seller. This is why being on the Amazon Brand Registry is a must-have for any Amazon seller who is serious about protecting their business interest on Amazon. 

The Amazon Brand Registry provides a necessary set of tools that help sellers avoid these issues. According to Amazon, more than 130,00 brands around the world are registered in Brand Registry, and on average, they’re finding and reporting 99% fewer suspected infringements than before the launch of Brand Registry.  Moreover, the Brand Registry provides sellers with a variety of special features such as: 

  • protecting your brand against hijackers and unauthorized sellers; 
  • stopping the sale of counterfeit products;
  • preventing competitors from maliciously changing your products listing title and images; 
  • providing you exclusive tools to better promote your brand and products; and
  • disclosing valuable data, such as relevant keyword data, that helps you increase sales velocity.

But to be eligible to enroll in the Amazon Brand Registry, sellers need an active registered trademark with the USPTO. Although getting a trademark comes with associated costs and takes several months to process, there are some significant benefits to be had from going to the effort of registering a trademark.

Increase your brand and business value

Acquiring a registered trademark is probably the easiest way to increase the value of your brand and business. The USPTO charges as little as $275 to obtain a trademark registration. Considering the potential of trademarks to appreciate in value over time, the costs for getting registered is relatively inexpensive. By simply owning the rights to your brand name, you add value beyond your core business. As your business reputation grows, the more valuable your brand will be. 

Because trademarks secure the value of your brand, it also makes your business an attractive acquisition prospect for a larger corporation. Investors will likely pay more for your business over a similar business that doesn’t have a trademark.

Use as an alternative exit plan

Business can be unpredictable. While your Amazon business may be going well now, you can’t predict what the future will bring. If for whatever reason, your business doesn’t work out, having a registered trademark gives you an alternative exit plan to simply closing out. 

Registered trademarks are intangible assets that can be assigned or sold – even if you don’t have any inventory of physical products. You can sell your trademark to a third party along with the “reputation” of your brand. We have seen trademarks being offered from $2,000 up to $2.2 million.

If you need help registering your trademark, get in touch today. Our team can help ensure your trademark application runs smoothly!

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