LONG BEACH, NEW YORK, UNITED STATES, February 1, 2021 /EINPresswire.com/ — The lawyers at Rosenbaum, Famularo & Segall, P.C. have seen an increase in issues related to not having a solid non-disclosure agreement in place. Amazon based businesses have trade secrets and manners of operating their online stores, as well as individualized ways of sourcing their products, and how they create and monitor their listings. Not everyone who an Amazon seller works with should be privy to these details. These unique business attributes are clearly something that should be the subject of a non-disclosure and confidentiality agreement.
Non-disclosure agreements and confidentiality agreements are exactly what they sound like: whoever is signing that agreement is promising to keep the business’s information absolutely secret and will not share it with any party. There are generally two types of vendors and confidentiality agreements:
One type is designed for the internal people on the business’s team. Shop owners should make sure that their employees and staff are not going to share company information with anybody else. The second kind of NDA or confidentiality agreement is designed for those outside of a shop’s organization. If they hire consultants or use vendors, they are giving access to company information, which should be protected.
Here is an example of how not having a non-disclosure agreement in place can affect a seller’s business. Many of Rosenbaum, Famularo & Segall’s clients use third-party fulfillment vendors in order to source, sell, and ship their products, among other reasons. The issue is that those fulfillment companies will have access to the Amazon seller’s supplier information. There is nothing stopping them from going out and competing directly against that Amazon seller, using the supplier that they have because they have access to all that information. To avoid this, utilizing a non-disclosure agreement with a third-party fulfillment company is recommended.