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Online Reseller Contracts: 3 Reasons to Consult an Attorney Before Signing

Posted on in Online Contracts

Florida cyberlaw attorneyOnline reseller agreements have become a popular business model in recent years. Formed between a product owner and an online reseller, these agreements can produce substantial and incremental income for both parties. Success, however, is heavily dependent on having a well-written online reseller contract.

The Basics of Online Reseller Agreements in Florida

An online reseller is responsible for attracting customers and taking orders for the product. The reseller may obtain orders through their own website and/or through an online marketplace website, such as Amazon or eBay, depending on the terms of the agreement.

The product owner may be a large manufacturer,  U.S. distributor, or even an artisan. The product owner is responsible for shipping orders directly to the end customer. In the case of digital products, such as software or photographs, a customer may download their purchase from either the reseller’s website or the owner’s website, depending on how the reseller agreement is written.

The Value of Consulting a Tampa Lawyer Before Signing a Reseller Contract

The three most important functions of a reseller agreement are to protect the reputations, intellectual property rights, and financial interests of the two parties. An attorney with in-depth knowledge of online contract laws can make sure that your interests are well-protected in these key areas. Your lawyer can also help you understand the purpose and implications of the contract’s terms and conditions.

1. Satisfy Customers to Protect Both Parties’ Reputations.

The product owner’s reputation depends on the reseller’s ability to market their product appropriately and process customer orders accurately. In turn, the reseller’s reputation relies on the product owner to maintain product quality and fulfill customer orders quickly. An online reseller agreement should cover details, such as the turnaround time for orders and how customer service issues will be resolved.

2. Protect Intellectual Property, But Also Profit From It.

Reseller contracts must protect the product owner’s brand equity, but also give the reseller sufficient freedom to market the product and generate sales. The contract should clearly define which products the reseller is authorized to sell, during what time frame, in what territories or markets, and any exclusivity rights. The agreement should also describe the marketing policies and pricing policies set by the product owner, along with appropriate confidentiality and intellectual property rights clauses.

3. Make the Financials Work for Both Parties.

The right economics are critical to a successful reseller agreement. Sales targets, minimum authorized prices, suggested retail prices, discounting policies, and payment terms should all be covered in the contract.

Ultimately, the terms of the reseller contract are critical to both parties’ success. Take the time to understand the meaning and effect of each clause before signing.

Consult an Experienced Tampa Online Contracts Attorney

Online reseller agreements can generate easy income--or a lot of trouble. Make sure your legal and financial interests are fully protected by having a knowledgeable New Port Richey online contracts lawyer write and review your reseller contracts. Nelson Cyber Law, PLLC, stays up-to-date on the hot issues and best practices related to online contracts and intellectual property protection. Call 1-800-440-5536 for a free 30-minute consultation.





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