Can I resell products I buy at wholesale to other retailers?

ByNina Kaufman

Opinions expressed by Entrepreneur contributors are their own.

我的隔壁邻居是美宝莲化妆品sale distributor. So I can buy the products cheaply, sell them and make a profit. Is it legal to buy the products from my neighbor and try to sell to dollar stores and independent beauty supply firms to obtain them as accounts?
Generally, companies such as Maybelline require that you have a direct arrangement with them to buy and sell their products. They want to ensure that the distributor--who is trading and making a profit on the Maybelline name--is a responsible person who will handle customer inquiries and complaints in an appropriate fashion (to limit Maybelline's liability).

If you jump into the middle of that arrangement for your own accounts, Maybelline has no way of pre-screening you. It's also likely that if Maybelline got wind of what you were trying to do, it could bring a lawsuit against you to disgorge your profits.

In addition, some companies that work on a wholesale distribution model (and not just a network marketing model) provide their distributors with an exclusive territory. If you were to buy the products from your next-door neighbor and sell to your own accounts, you could well be undercutting his/her rights to sell exclusively in the territory . . . which will not make for a happy and harmonious neighborhood.
Wavy Line

Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under herAsk The Business Lawyerbrand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes theMaking It Legalblog.

Editor's Pick

Business News

Kristen Bell and Dax Shepard's Family 'Stranded' at Boston Airport During 9-Hour Delay: 'We Made Quite a Home Here'

The actors spent $600 on pillows and blankets while waiting for their flight.

Science & Technology

This Is the New ChatGPT Trend That Will Enhance Your Business

ChatGPT plugins are becoming the new cool trend among entrepreneurs to enhance their businesses and engage more customers. Here are some insights into how they're impacting business enterprises, along with some potential risks that may accompany the benefits.

Business News

Netflix is Hiring an AI-Focused Role—and the Starting Salary is up to $900,000

The streaming giant is looking for a leader in its machine learning department.

Money & Finance

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

企业家是不能过度指狗万官方望太多a company exit for their eventual 'win.' Do this instead.