I have a US product that does about $1M/year with 200+ reviews. I’d rather not open my own CA/EU accounts. A business partner has mature CA, UK, and EU accounts. We’re thinking of doing this:
I license my brand to him
He lists under my ASINs (same product)
I also run the ads on his accounts (I already do that)
I already have 30% equity in his store
Two main questions:
What’s a fair revenue share for this arrangement? Should it be based on net sales or contribution margin? The partner’s store also sells other products, and I already get 30% of total store profit.
For Europe: I searched for similar products by keyword and found nothing. But when I search by ASIN, I see a competitor being sold by a different seller. Is this a red flag for IP infringement? Or does it just mean competitors haven’t entered Europe yet?
Would love to hear from anyone who’s done a similar cross‑account brand licensing deal.
Answers (4)
Strongly recommend:
Have him create a separate ASIN under your brand (by listing a new product with the same SKU, but not “following” your US ASIN). Then use brand to allow him to sell that separate ASIN.
Or use Amazon’s Brand Registry “Authorized Seller” feature to restrict who can sell your brand’s products.
Also, consider that CA and EU sales volumes are often much smaller than the US. Don’t expect huge profits — the main benefit might be diversification, not revenue.
Risk 1 – Brand association / account linking
If your partner’s account gets suspended (VAT issues, compliance, fake reviews, etc.), Amazon may your US account.
Mitigation:
Use completely separate IP, devices, and browsers when managing his account.
In the contract, state that the partner bears full responsibility for compliance, and you can immediately terminate the license if they receive a policy warning.
Risk 2 – Brand hostage
The partner could register a similar trademark or control the listing.
Mitigation:
Keep brand ownership in your name.
Grant a limited, revocable license (specific ASINs, specific marketplaces, specific time period).
Require that they use your exact brand assets and not alter the listing without approval.
Risk 3 – Bad reviews or hijackers
If they get negative reviews or counterfeiters appear on their account, your US listing can be affected.
Mitigation:
Consider enrolling in Amazon Transparency (serialization).
Require the partner to follow your quality and fulfillment standards.
Risk 4 – Data opacity
They might underreport sales.
Mitigation:
Write into the contract that you have the right to audit their Amazon reports.
Tie payments to Amazon’s official Date Range Report, not their internal numbers.
Your partner takes 70–75% because he carries all the financial risk (inventory, account compliance, VAT, etc.).
You contribute the brand, listing, and ad management.
If you already have 30% equity in his store, that’s separate. For this specific SKU, the 25–30% is on top of your equity. But be prepared to negotiate down if he pushes back.
On Europe:
The fact that you can’t find competitors by keyword but can find them by ASIN is not a sign of infringement. It usually means they haven’t optimized keywords, run ads, or properly indexed in that marketplace. It’s more likely an untapped opportunity.
To be 100% safe, spend 10 minutes checking trademarks and design patents at the EUIPO website.
Option 1: % of net sales (simplest, least friction)
Net sales = product sales minus Amazon fees and FBA fees (ad spend usually not deducted, otherwise numbers get messy).
Typical range for brand license + ad management: 8–12% of net sales. If you also provide creative assets or take on more risk, you could go a bit higher, but rarely above 15%.
Tiered structure example:
Monthly net sales ≤ $50k → 8%
$50k–150k → 10%
≥ $150k → 12%
Add a floor or cap: e.g., minimum $2k–5k/month.
Option 2: % of contribution margin (more fair but more arguments)
If your partner insists on deducting ad spend, define exactly what costs are allowed. Typical split for brand + ad management: 15–35% of contribution margin. But you must lock in the cost list in writing; otherwise, they can inflate costs to reduce your cut.
Key contract terms:
Only the specific ASINs you agree on.
Monthly settlement based on Amazon’s Date Range Report.
You have the right to audit orders, ad spend, and returns.
Why you can ask for this:
You’re bringing a proven product (1 year of data, 200+ reviews, $1M run rate), ready‑made content, and ongoing ad management. That’s real value.