To become an authorized online retailer, you sign a formal agreement with a manufacturer that gives you wholesale pricing, official product images, and a limited license to use the brand’s trademarks in your listings. Getting there takes more paperwork than most new sellers expect: a registered business entity, a federal tax ID, a state resale certificate, product liability insurance, a polished website, and a completed application that the brand’s sales team will vet before offering you a contract. The steps below walk through what each brand will ask for and what the agreement itself will require of you once you sign.
Register a Business Entity and Get an EIN
Manufacturers will not negotiate with an individual operating under a personal name. You need a registered business entity, usually a limited liability company or corporation, filed with your state’s Secretary of State or the equivalent business agency. Most states let you register online, and the filing typically costs less than $300 depending on your state and structure.1U.S. Small Business Administration. Register Your Business The entity also creates a legal wall between your personal assets and the liabilities that come with selling physical products.
Once the entity exists, apply for a federal Employer Identification Number through the IRS website. The application is free, takes minutes, and produces a nine-digit number that functions as your business’s tax identity. You will hand this number to every brand, bank, and payment processor you work with.2Internal Revenue Service. Get an Employer Identification Number Third-party sites that charge a fee for EIN applications are best avoided; the IRS never charges for one.
Get a Resale Certificate and Register for Sales Tax
Every state with a sales tax issues some form of resale certificate, sometimes called a seller’s permit. This document tells your wholesale suppliers that you are buying inventory for resale, not personal use, so they should not charge you sales tax on those purchases. You collect the tax from the end customer instead. Brand suppliers almost always ask for a copy before opening a wholesale account, because it proves you are a legitimate reseller.
The certificate only covers the purchase side. On the selling side, you are responsible for collecting and remitting sales tax in every state where you have what is called economic nexus. Since the Supreme Court’s 2018 decision in South Dakota v. Wayfair, states can require out-of-state online sellers to collect once they hit a revenue or transaction threshold.3Supreme Court of the United States. South Dakota v. Wayfair, Inc. The most common threshold is $100,000 in annual sales, though a few larger states set theirs at $250,000 or $500,000. If you sell nationally, you will likely owe registration in dozens of states within your first year or two. Ignoring this creates back-tax liability that can sink a young business.
Secure Product Liability Insurance
Most manufacturer agreements require commercial general liability insurance that includes product liability coverage. The standard minimum is $1 million per occurrence and $2 million aggregate, though brands selling high-value or safety-sensitive products sometimes demand higher limits. Expect the contract to require you to name the manufacturer as an additional insured, meaning the brand is covered if a customer sues over a product you sold.
Even without an explicit requirement, this coverage is a practical necessity for any business reselling physical goods. A single uninsured product injury claim can wipe out everything you have built. Get the policy in place before you start applying to brands, because many applications ask for your certificate of insurance upfront.
Contact the Manufacturer Directly
Start at the manufacturer’s own website. Most established brands include a link in the footer labeled something like “Wholesale,” “Dealer Inquiry,” or “Become a Retailer.” These sections typically outline the brand’s requirements and the platforms it allows. Going straight to the source matters. If you end up negotiating with a middleman or an unauthorized distributor, the agreement you sign may not carry the protections or pricing of a genuine authorization.
Once you find the right portal, send a brief professional message requesting the authorized retailer application. Direct it to the brand’s sales department or, if listed, the territory manager responsible for digital distribution. A long pitch is not needed at this stage. State who you are, describe your business, mention the platforms where you sell, and ask for the application package. The goal of this first contact is to get into the formal vetting pipeline and identify the specific person who will handle your file.
Prepare Your Application Package
Brand applications vary, but the information they request clusters around a few predictable categories. Having everything ready before you sit down to fill out the form saves weeks of back-and-forth.
- Business basics: your legal entity name, physical address, EIN, and resale certificate. Some applications also ask for your articles of organization or incorporation.
- Digital presence: the URL of your website and every third-party marketplace where you plan to sell. Brands audit your site for design quality, user experience, and fit with their image. A half-finished Shopify store with stock photos will get you rejected.
- Financial references: bank account information, business credit references, and sometimes a Dun & Bradstreet number. The brand wants to know you can pay invoices on time.
- Trade references: other manufacturers or wholesalers you already work with, who can speak to your payment history and compliance with their dealer terms.
- Fulfillment details: whether you ship from your own warehouse, use a third-party logistics provider, or rely on a marketplace’s fulfillment network. Brands care because it affects how their products are stored, packed, and delivered.
Many manufacturers prefer applicants with at least a couple of years of operating history before considering a new digital account. If you are brand new, smaller or newer brands with less rigid vetting are a more realistic starting point. Build a track record with those before approaching the larger names.
Most brands accept applications through an online portal or by email to the assigned sales representative. A few still require physical copies of signed documents sent by certified mail. The review period typically runs two to four weeks while the brand verifies your information, checks your background, and evaluates your website.
Read the Dealer Agreement Before You Sign
If approved, you will receive a dealer agreement or authorized retailer contract. This document controls the entire relationship, and the terms that matter most are the ones that limit what you can do.
- Minimum Advertised Price (MAP): a floor price below which you cannot advertise the product. You can sometimes sell below MAP in the shopping cart, but you cannot show a lower price on your listing page, in ads, or in email campaigns. Violating MAP is the fastest way to lose your authorization. Manufacturers can lawfully adopt these policies unilaterally and refuse to deal with retailers who violate them.4Federal Trade Commission. Manufacturer-Imposed Requirements
- Channel restrictions: many brands prohibit sales on certain marketplaces or limit you to specific platforms. Selling on an unauthorized channel, even at full price, is typically treated as a breach.
- Territory and exclusivity: some agreements limit you to a geographic area or grant you exclusivity in a region. Others are non-exclusive and open to any qualified retailer.
- Trademark usage: the contract grants you a limited license to use the brand’s name, logo, and product images in your listings. That license is narrow. You can use the marks to advertise genuine products you are authorized to sell, but you cannot alter them, use them on your own branding, or sublicense them. If the agreement ends, you generally lose the right to use the brand’s logos and images immediately.
- Termination and inventory: most agreements let the manufacturer terminate for cause (MAP violations, unauthorized channel sales, failing to meet minimums), and many let either party terminate without cause on 30 to 90 days’ written notice. Look for language addressing what happens to unsold stock. Some contracts include a buyback clause; others say nothing, leaving you holding inventory you can no longer sell as an authorized dealer. If the agreement is silent, negotiate the point in.
Both parties sign, often through an electronic signature platform. The final activation step is usually an opening order, a minimum first purchase that varies widely by brand and industry. Once payment clears, the manufacturer gives you access to its wholesale ordering portal and official product assets, and you can begin listing.
Follow the Federal Rules for Online Sellers
Shipping Timeframes
The FTC’s Mail, Internet, or Telephone Order Merchandise Rule applies to every online retailer. If your listing states a shipping timeframe, you must have a reasonable basis to believe you can meet it. If your listing does not state a timeframe, you must ship within 30 days of receiving the order. When a buyer uses credit to pay, you get 50 days.5eCFR. 16 CFR Part 435 – Mail, Internet, or Telephone Order Merchandise If you cannot ship on time, you must notify the buyer and offer the choice between consenting to the delay or canceling for a full refund. Staying silent and shipping late is treated as an unfair or deceptive trade practice under the FTC Act.
Product Safety
If you sell children’s products, the Consumer Product Safety Commission requires that those products be accompanied by a Children’s Product Certificate based on testing by a CPSC-accepted third-party laboratory. As a reseller, you are not normally required to issue your own certificate because the manufacturer or importer should provide one. If your supplier cannot or will not produce the certificate, the obligation falls on you to get the product tested and create the certificate yourself.6CPSC. Online Sellers’ Safety Guide For all other consumer products, confirm your supplier is meeting applicable safety standards. Being authorized does not shield you from liability if a product you sell injures someone.
Endorsements and Reviews
The FTC’s Endorsement Guides require that any material connection between a seller and a brand be disclosed when it would affect how consumers evaluate the claim. If you receive free products, co-op advertising funds, or other incentives from the brand and feature reviews or endorsements on your site, those connections must be disclosed clearly. A review program that gives customers free products in exchange for feedback must say so next to the reviews.7Federal Trade Commission. FTC’s Endorsement Guides: What People Are Asking
Budget for the Ongoing Costs
Startup costs are front-loaded, but the recurring obligations add up. Factor these into your financial planning beyond the cost of inventory itself.
- State entity maintenance: most states charge an annual or biennial report fee to keep your LLC or corporation in good standing. These range from nothing in a handful of states to several hundred dollars in others.
- Product liability insurance: premiums depend on your product category, sales volume, and coverage limits. A basic $1 million/$2 million policy for a low-risk product line might run $500 to $2,000 per year; higher-risk categories cost significantly more.
- Sales tax compliance: if you sell in many states, you will likely need software to calculate, collect, and remit sales tax. Subscription costs vary with transaction volume.
- Platform fees: marketplace commissions, payment processing fees, and listing costs eat into margins. Factor these in when evaluating whether a brand’s wholesale pricing leaves you enough room to profit.
- Minimum purchase requirements: many brands impose quarterly or annual minimums to keep your account active. Falling short can trigger termination. Make sure the minimums are realistic for your sales velocity before you commit.
Wholesale pricing from authorized brands generally falls well below the suggested retail price, but the exact discount depends on the product category, your order volume, and the brand’s pricing structure. Do not assume a specific margin until you see the actual wholesale price sheet, and remember that MAP policies often limit how aggressively you can price to move volume.