With Amazon entering the Australian market, many retailers are considering selling their goods via the Amazon platform. If you are considering entering into an agreement with Amazon you should consider the contractual terms being offered and whether they will work for your business. Just remember that although Amazon is a large multinational company, it does not mean that they will not negotiate their agreements. I have had many clients negotiate contracts with large multinationals with many different degrees of success. At the end of the day, Amazon needs your business to make money in Australia.
Also, under the Australian law, Amazon will be subject to the Australian Consumer Law which protects small businesses from entering into unfair contracts with larger companies. This compels Amazon (and any large company) to negotiate its standard form agreement when negotiating with a small business.
Some key aspects for you to consider include:
- Who carries risk and title to the products and when do they pass to the other party?
- Do you have a right to cancel an order for products if you are unable to fulfil it? Are there any consequences of cancelling an order?
- Who is responsible for arranging for returns and who bears the cost of returns?
- What are your rights when terms or policies are amended by the other party?
- When can you terminate the agreement?
If you need advice or a review of your distribution agreements, please don’t hesitate to contact me at or call me at 1300 033 934 for a no-obligation quote.