Where are Walmart and Amazon getting their Milwaukee tools from?
I came across a Milwaukee M12 ratchet listing at Walmart a few years ago, and it struck me as unusual. Why? Because the product was “sold and shipped by Walmart,” but Walmart isn’t an authorized dealer.
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See? “Sold & shipped by Walmart.”
If you look at the site now, there are tons of other listings.
Here’s an M12 bare ratchet listing.
Amazon also has Milwaukee tools, such as the new M12 Fuel 1/4″ ratchet.
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“Ships from and sold by Amazon.com.”
I like to think that I have a working knowledge of how retail distribution works. But I can’t quite figure this one out. If Amazon and Walmart are NOT authorized Milwaukee Tool dealers, where are they getting the tools from?
This is as strange as when Amazon had direct listings for Harbor Freight Bauer tools last year.
A few months ago, Amazon was selling the M18 Fuel 7-1/4″ cordless miter saw – also directly – and I asked Milwaukee about whether Amazon not being an authorized dealer could lead to warranty or service complications. They replied:
Since Amazon is not an authorized distributor, anyone who purchases our products from them is going to have warranty and service complications because their receipt will show that they purchased from an un-authorized dealer.
So, that’s one reason to stick with authorized dealers.
But the question remains – if Milwaukee Tool isn’t selling to Amazon or Walmart, where are they getting the tools from? Are they buying them from Home Depot or other authorized dealers? If not, where’s the source?
This is all really unusual, but it’s nothing new, either. I posted something similar 2 years ago, when I first spotted direct-from-Amazon listings for relatively new Milwaukee cordless tools. Things aren’t much different now, except for Walmart getting in on the action.
They even have a listing for the new 12Ah battery!
I’m hoping some of you know what’s going on and can clear things up for me.
Seamus
Given that it’s amazon and walmart involved, I’d guess Milwaukee is supplying them directly. Just in a hidden “unauthorized” way. Milwaukee doesn’t want to tick off hd or acme or their other smaller partners.
It’s also possible some factory manager is running another shift after hours and running this on the side, something that’s happened in other industries. But that seems unlikely if you think what quantities must be involved to supply these two.
As a side note, I chuckled at warranty issues. Just buy a new one from either of these places and return the broken one in the box. Less hassle than going thru Milwaukee.
Aaron
Just because fraud is easier doesn’t make it a good idea for resolving warranty issues…
Stuart
Agreed.
Within the return period? I’ll return a defective tool and request a replacement. After that? I’ll go through a warranty process.
Buying something new and then returning an old tool in its place is pretty low, and it raises prices for everyone. That’s as bad as the folks who “rent” tools by returning them after a quick project is over.
Rob Gibson
The only thing lower is sticking me with a crap tool that breaks and then making me wait weeks going through the warranty process.
DannyK
Yes, that’s so wrong. I bought new Makita tools from home depot and got two boxes with drills with broken triggers. No way that was a coincidence. What bug me more than that is that I see folks go on forums and blogs and brag about their cheating and justify it somehow.
Nate
I always make sure the box looks like it had never been opened before i buy it.
Nick
Last year I bought an Ego string trimmer kit at Home Depot in-store. At home I discovered the battery was missing and the tool had been stripped for its motor and electronics. It was clear some POS out there did this then returned it to the store, maybe reselling on ebay. I was able to take it back and get a new one but it really pissed me off to see this kind of behavior up close and knowing people like this are in the neighborhood. And it crossed my mind “what if they think I did it when I bring it back? There’s no way I can definitively prove it.”
Matt
yea thatll work. date on 2nd tool receipt says yesterday but the tool is used and broken…im sure the manager isnt gonna catch that…
Chazg
I know with Amazon you can send stuff you want to sell to Amazon and they will sell it for you and pay you when your items sell. I am guessing Walmart is not much different. Also drop shipping from other retailers is huge with both companies. I would not be surprised if smaller dealers where over buying to get a better wholesale prices and sending the rest to Amazon and Walmart under one of their 3 rd party options. It is almost like Amazon prime members when they get discounts then they sell on eBay for a little more and your eBay delivery is in an Amazon box.
The seller doesn’t buy anything until you order then they order it on Amazon, use your address and make a few dollars doing this. Ordering online is nice and easy but all of these online places use so much 3rd party supply options you don’t know where it came from.
Paul C
Amazon is now offering some kind of “red carpet” service where basically they handle everything including shipping. I’m not sure whether or not these listings show up as vendor X or those are the ones that say something like “sold by and shipped from Amazon” or something like that as opposed to a slightly different phrasing that seems to indicate Amazon is the retailer outright. With all the fraudulent listings where a vendor offers a cheap price but when you attempt to order somewhere in the process they redirect you to some other non-Amazon site for payment and then skip town, customers are starting to stick with “Amazon only” listings which means Amazon has to adjust their marketing accordingly.
BathMc
Seamus, Milwaukee is not that dumb that they would do as you are suggesting. You really shouldn’t brag about being dishonest, it doesn’t impress most people.
joe t.
I have been trying to figure this same thing out. And i hastily bought a milwauke m18 1/2in impact wrench (not the fuel model).i mistook it for a fuel. From amazon. And after reading the reviews. I am sending it back. Its not worth the headache and the standard m18 1/2In. Impact. Seems like from reviews its nominal torque output is the same as the green ryobi 3/8in impact wrench. (My.ryobi wouldnt break loose lugnuts on a honda, and its rated at 350+/- and that m18 1/2in is rated @ MAX tq. 450. Ive been in the car audio field long enough to know what “max” means. And that you never hold something to expectations of a max rating.
Anyways. I found this video on youtube. Thought id share. Its comparing authorized items with amazon etc. Items. And it proves the 1 and 2 star reviews to have validity to them. Regarding build quality
https://youtu.be/z_O0SX5JFqg
Ryan M Steindorf
So buyer be aware, I bought a milwaukee hd12 battery off Amazon and it was the best looking counterfeit I have ever seen, had me fooled til I sent it in after 2 charges for the warranty. It was sent back saying it was counterfeit so I then talked with a milwaukee rep and he told me they have no ties to Amazon and never to buy from them. As for walmart I don’t know but feel it would be the same.
Gavin
If it is like my experience with another brand Amazon sells but is not an authorized user, you end up the second owner of the product because an authorized dealer is selling the item to Amazon who then list’s it and thus no warranty for the end user because you bought a ‘used’ product.
Farid
I have also wondered about Home Depot and whether they use the same warehouses or shipping centers. I have seen several items that are priced exactly the same on HD and Amazon and the prices shift at the same time. Several of the items I’ve had shipped from HD came from the same area as Amazon warehouses. Heck I have seen telescopes and other items not typically associated with HD for sale on HDs site.
Travis
Just because an item from one company is shipped from the same area another company ships from doesn’t mean they come from the same center. It’s not unusual for distribution centers from different stores to be clustered in the same geographical area. Also Amazon, HD, Lowe’s, and Walmart own their own DCs, and most of the stuff purchased directly from these stores is processed by one of their own DCs
Dave in VT
Right. States and townships offer tax breaks and other incentives to lure this type of business. That, or the location is just a shipping/receiving sweet spot so it makes sense to multiple companies to locate facilities there.
Farid
You are probably correct. I am very familiar with that. It’s just the timing and the type of offerings on HD website that don’t make sense. What I mean by timing is is that it used to take HD several days to ship to me. Amazon opened a big distribution warehouse near me and stuff ships in one day. Home depot now ships from the same area in one day as well. It all started happening at the same time. I’ve been to the area several times and yet to see an HD warehouse (it could be an unmarked section fo the same building). .
As for the offerings, do a search on HD website for stuff like: telescope, cookware, camping, toys, etc. I don’t know how long they have been doing that.
Lincoln
Amazon and Home Depot seem to have gotten into a price matching war. I think they have some automation that keeps the prices equal most of the time.
Stuart
Walmart too.
John
Manufacturers need to get their heads out of their butts. If an American customer buys your product new, and that product was manufactured for the American market, who cares where it was bought within the U.S., authorized dealer or not, HONOR THE WARRANTY and don’t act like douchey lawyers.
Wayne R.
Yes, exactly.
What do they gain by not honoring the warranty simply because of the route the thing took to get to you? Except pissed off ex-customers…
TonyT
Yes, but for example, people will buy fake Sandisk memory sticks, and then get mad if SanDisk won’t honor the warranty (for a product which isn’t theirs)
Jim Felt
SD cards and the like all look and function “similarly”. And are made by very few actually factories.
Since counterfeiting the packages and the labels is so easy even Amazon themselves have sometimes been fooled. Though of course they will replace the counterfeit instantly. “If asked”.
Power tools are a lot harder to fake. And seldom worth the manufacturing effort.
Has anyone seen any examples here on Toolguyd?
Dtnel
Only buy the memory cards that say sold and ships by Amazon. Amazon was getting hit with a lot of fake stuff but I think they’ve wisened up and are sourcing their stuff better now and not buying from the bottom feeders.
All stuff shipped and sold by Amazon to my state is now taxed so I really give it a good looking over for fake stuff as with memory cards I’ve bought enough that I can spot little differences.
Stuart
Some of the stories I heard involved “fulfilled by Amazon” inventory being mixed in with direct inventory, and so even ordering direct from Amazon wasn’t a sure thing. I don’t take chances with camera memory cards anymore, and order from B&H.
Eric
I use Milwaukee tools all the time. Don’t believe the “wont honor the warranty” hype. Go to the Milwaukee e-service site, put in your serial number and if it’s less than 5 years old they’ll provide a FedEx shipping label guarantee you’ll have it back in 7-10 days (mine have always been 7 or 8 days). You don’t have to provide proof of purchase or anything. Just the serial number.
Erick
Unless these are gray market items. If the serial number shows that it was produced for another country, you could run into complications.
Jim Felt
Thanks Erick. I’ve always had great luck with Bosch but recently started buying M12and M18 Milwaukee and realized they don’t have a simple registration process.
So your post explains how they deal with defects. Good.
And thanks.
firefly
My experience is that most manufacture will warranty your stuff but they have the option not to if you purchase from an unauthorized seller. This totally make sense to me. The option not to is important in case there is a clear case of abuse.
Beside if I was a manufacture, I don’t see anything wrong with being able to sell my goods via another gray channel at a cheaper cost without the warranty. As a consumer I think that’s a fair deal as well. Having the option to purchase good at a lower price without the warranty. Beside many place do offer their own warranty at an additional cost.
Adam
It’s funny they say you will run into warranty problems, when in fact you don’t even need a receipt to send something in. Now you might lose a few months depending on when tool was made if you don’t use a receipt, but they will just use the serial # to see if it is within 5 years.
Several years ago, Amazon bought a ton of stuff from 3rd party sellers on their site, in order to be able to ship it out if there warehouses quickly. I really doubt they would focus on stocking one brand, but i suppose anything is possible.
Juan
Milwaukee will soon start asking for receipts for this same reason.
JJ Diablo
How long is soon? Still dont need receipts unless its over 5 yrs by ser number but not from DOP.
12/13/20 so its been 2 years…
salmon
I’d like to highlight the description that the vendor has written on Amazon for the 12.0AH battery from Milwaukee:
* Product is manufacture in China
* 3 yr. warranty on material and workmanship
* This product meets customer requirement
Certainly seems like it’s not quite a legitimate agreement that’s going on.
Stuart
That was likely written by a 3rd party seller. Amazon has a tendency of merging direct and 3rd party listings together at times.
Frank D
Curious to hear the answer. Based on volume that would have to be a direct channel.
I have run into the “authorized dealer” only for warranty, once in a while, with some brands … which to me is total bull.
If one buys a new US market product through the internet, for the listed price, an dir fails, then the warranty should be honored.
Local stores often don’t have the product and / or the quantity of some things. Go in, oh we’d have to order that from our distributor, that’ll be here for you to pick up in the next week or two. Sorry, this is 2018, not last century.
Just like our local big appliance store only services product bought from them. They actually get funny when you buy a house and the previous owner fitted out the kitchen. Seriously. But they don’t want to service half the stuff in my house, my wife or I might call them for? Fine. I will just do it myself or go with a small indie if I can’t figure it out.
TonyT
BTW, Bosch seems to be better – if you have the warranty cards, it doesn’t matter (I bought some of my 12V Bosch via eBay, and have successfully register them)
There is some value in Authorized Channels, given the prevalence of fakes (see, for example, the post on Mitutoyo calipers — also, it’s a real problem in the electronics supply chain from the component level on up, e.g. fake Sandisk memory sticks) and grey market
Frank D
With camera gear grey market certainly is an issue, saw a fair bit of it back when I was a photography enthusiast (the cost and inconveniences of carrying kit and hassles with security etc eroded the hobby for me, maybe some day I will get back into it)
John
Why? If the manufacturer is on the hook for replacing defective tools, then they should be able to control every step of the process and logistics that get the tool into your hands. Once it gets to an unauthorized distributor they can’t control what they do to the tools after that. You don’t know if they are opening them up and swapping out parts or distributing 2nd hand tools, etc. People are sketchy. If I’m warrantying something then I want to control everything so I can avoid sketchy stuff from happening. Their name is on the product so they don’t want someone unauthorized from messing with the product.
Frank D
Seriously?
A reseller / distributor would be damaging tools? swapping out parts? selling used instead of new? …
That would last all of a few instances before that reseller’s name gets flagged all over the internet, review sites, BBB, etc and emails land in the manufacturer’s inboxes.
John
Yes, really. You’re assuming the units fail immediately or that the changes are obvious to customers. If a unit craps out after 6 months because the switch failed, are you gonna know the difference between the $2 switch that supposed to be in the unit and the $0.30 switch that someone refurbed it with? If your reputation and money was on the line would you be willing to guarantee the actions of a person/company you haven’t vetted yet? It’s easy to sit here and say otherwise until you have money vested in the situation. Companies get burned a lot by stupid stuff like this.
JoeM
This one’s easy… Do your very best NOT to buy from Amazon or Walmart, and let their tool businesses crash. Let the Authorized retailers step up and replace these two village idiots. Support small business more, and it will result in fewer headaches.
Jorn
I agree with your sentiment but the problem is that Amazon sometimes has the best deal on the table… money talks.
MichaelHammer
I’m with you, I do not buy power tools from Amazon.
Aaron
Through Walmart’s DSD program, third-parties can fulfill orders from their warehouses, yet the website still says “sold by Walmart.” My best guess is that some dealer is selling these tools through Walmart’s website, but Walmart never touches the tool. I wouldn’t be surprised if Amazon has a similar program.
Adam
Seems like the dealer could lose their relationship with Milwaukee if they were to find out who was selling them that way.
Karl Roebling
By being ‘unauthorized’ Amazon & Walmart can sell below list without incurring the manufacturer’s wrath.
Toolfreak
TTi’s brands, including Milwaukee, are not exclusive to “authorized” dealers. There are PLENTY of stores around the country/world that sell Milwaukee tools who are not “authorized” dealers, some who WERE authorized dealers but no longer are, or who might/will be “authorized” dealers in the future. All that really means is they pay the authorized dealer fee and sign the contract and abide by all the rules/requirements/etc.
I’m pretty sure corporations the size of Amazon/Walmart have no problems getting any and all distributors of Milwaukee products to sell huge volumes of tools to them. TTi doesn’t micromanage the distribution process to where they’d block sales to Amazon/Walmart, nor would they want to – it’s in their best interest to move and sell all the product they can. About the only case I can see something happening is if there is a serious production shortage and Amazon/Walmart are buying huge amounts of tools when “authorized” dealers can’t get enough or any at all to sell.
I’d say the HF Bauer tool listings weren’t that strange, either HF putting their tools online at inflated prices to make them seem like a popular brand and/or just some other place buying them and listing them online for potential buyers who don’t know they’d be able to get them at HF for less. There’s actually a LOT of that on Amazon and even Walmart.com, merchandise you can easily find and buy cheaper elsewhere but they’re just fishing for clueless buyers who will pay that high price and pocket the difference as profit.
logan
Milwaukee does warranty via the date code on the tool.
I’ve warranted a ton of tools, never once including a receipt. The date code on the tool was good enough – I’ve never even been asked.
And if amazon and walmart are selling them, they must’ve gotten a hold of them from an authorized dealer.
it’s not like tool serial numbers are tracked like hull and VIN numbers
Jalopy_J
If they are truly being sold by Amazon & Walmart themselves and not some third party using their platforms (your WalMart screenshot says “Sold and shipped by AMI Ventures, inc”), they are buying from an authorized dealer and reselling them.
About 10 years ago, I was at a DaimlerChrysler training facility. The instructor there got off on a tangent about Wal-Mart and Oreilly and such selling Mopar oil filters and other stuff like that. Chrysler does not provide Mopar parts to anyone except their dealers. He said, in the case of WalMart, every single Mopar filter was being sold to them by a single dealer in Florida. The dealer would order entire semi loads of them from Chrysler, and Walmart would immediately come get them and take them to their distribution center. The dealer was probably reselling them at a penny or two profit, but you take that times a couple million or whatever, and they were making serious cash. The people at Chrysler new exactly what the dealer was doing, but they did not care. They were moving more Mopar product as well while still adhering to the terms of the franchise agreements.
Stuart
The 3rd party listing is only under the “1 other seller” part.
Rob Gibson
I’m guessing Milwaukee has 2 tiers. There’s authorized dealers. And there’s resellers. Amazon and Walmart would be the latter. They wouldn’t get the same support that a dealer would get like how when Home Depot gets a return it just returns it to the manufacturer (I think it’s tagged an RTM). Amazon and Walmart aren’t dealers so they get the item for cheaper but they don’t get the support so if they get a return, rather than sending it back to Milwaukee they just resell it again as a used tool on Amazon Marketplace or the Walmart equivalent.
It’s gotta be something like that. No way does Amazon go through a third party and still undercut HD prices. Otherwise that third party would just sell it on Amazon themselves and undercut Amazon.
John Fannin
If you adjust the quantity in your cart to 9999, you can see how deep their stock goes. If they have a few, it probably means that 3rd Party sellers’ lost stock has been found and is being sold (after the seller has been reimbursed for a lost item). Sometimes Amazon takes over orphaned stock in ways like this. If they have 9999 in stock, they have a real supplier.
Even if they’re not an authorized dealer though, Amazon’s return policy is great. Amazon’s policy for selling as “new” is that it must not be different in any way from a new item, including warranty. So I imagine you’d be eligible for refund / exchange forever if you had an issue, the item was sold by Amazon and not a 3rd party seller, and you pointed this out to them.
TZi
The manufacture could supply them but just sell it as non authorized so they don’ t need to provide warranty on them. It’s similar to how some manufactures clear out new items as refurb, damaged packaging, or brown box when they are new, but don’t want to provide a full warranty.
Rev. Daniel J. Lemke
Just my recent experience, for a possible counterpoint. I’m looking at the Milwaukee 6955-20 corded sliding 12″ dual bevel miter saw, and Amazon lists several sellers, none of whom come near the $649 that practically everyone else in the free world is asking. I never even thought of looking at WalMart; I suppose I should.
And while we’re on this subject, what’s up with that one price? Nearly all of them show a significantly higher “list” price, but somehow their “discounted” prices are more consistent than the so-called “list” prices.
WhoKnew
It’s pretty simple, i work in the food manufacturering industry and i get most of my supplies, motors, etc. from Motion industries. If I need something they don’t carry or are a dealer of, they buy it from somewhere else (a lot from MSC ) and sell it to us. Walmart and Amazon are the same way. They control a good portion of online sales and there respective exclusives, so to expand their sales they turn into 3rd party sellers. The end up getting the stuff from authorized dealers and sell to you. No fraud or back door dealings going on. I can almost say for certain that if you get Milwaukee tools from either one and it’s advertised as new it will be new. I believe it’s against the law to advertise as new and sell as a referb.
Wayne R.
“Food manufacturing industry” – I get it, but still, that’s kinda jarring to see.
Greg
Last year i ordered an item on Amazon – pretty sure it was “sold and shipped from Amazon” as I always pay attention to this ; couple of days later i receive a box with full Lowes branding and no trace of it being an Amazon order. Packing list was Lowes, box was Lowes and it was not delivered via Amazon delivery network (can’t remember the carrier).
I have no idea how my Amazon order transformed into a Lowes order. I was pretty confused as I didnt expect anything from Lowes.
So maybe this is similar – somehow these items could be sold “unofficially” by Home Depot or another authorized retailers ; maybe these are to clear excessive stock ? How/why do they show up as “sold by amazon” is beyond me though.
Farid
I have had the same thing happen to me. I have ordered from Amazon as “sold and shipped from Amazon” and had Grainger’s box and packing list.
Nate B
Same thing happened to me, I ordered snacks from Amazon and they showed up in Sam’s Club dress.
Which pisses me right off, because I bend over backwards not to shop at Walmart.
Doug
I’m in the pool business, and I’ve seen this 1st hand at a distribution warehouse. It’s been done a few different ways.
1st I saw that the manufacturer made a deal with Amazon and ran it through a distributor. So all the items came to the distributor and then got delivered to Amazon (2 big Amazon distribution centers within 2 miles). Then there were complaints.
Then there were individuals that were buying from distribution in bulk and getting a deal then selling to Amazon. More complaints. Now the major manufacturers in pool equipment put on the box in big letters “If purchased online warranty is 90 days”. Then they extended the warranties when purchased through distribution.
One manufacturer just announced that they are completely taking everything off the internet. I’m guessing that in their ” Authorized dealer” agreement it’s states that they can’t sell out of distribution. They are asking pool professionals to rat out anyone selling to internet sites. I have a feeling that they are going to come out with a new trade name to sell to internet (lower models) and limit warranty.
It really sucks when you go to sell a pool pump to a pool owner and they just get online and purchase at the same price that I buy it and then come ask me to install. I still charge the same profit as if I had marked up the pump. About 1 in 3 won’t have me do it.
Frank D
That reminds me of issues with pool robots …
One brand I’m familiar recently cut out their entire dealer network, will not sell any single part when you call hq either, requires shipping the entire robot —- which shipping costs are not insignificant as an end user —- … pay a diagnostic fee and then the part plus repair. I knew what was wrong … their low quality power supply once … managed to find one online.
ToolOfTheTrade
Technically nobody is an authorized dealer if you think about it. They’re simply buying from the supplier and distributing the product for a price based on msrp. They don’t warranty the tools nor do they service repairs to them under any warranty guidelines if it breaks within the warranty period. If anyone were an actual authorized dealer, like a vehicle dealership, they would perform repairs and honor the warranty where they were sold at. Purchase and return for a refund with a receipt or store credit is as far as the retailer goes. Service is not available. Which means that they are not an authorized dealer. They are simply the middleman who sells the product based on msrp and that’s it. And any kind of extended warranty offering at the time of purchase is not on the retailer’s behalf, it is on the manufacturer. Just as it is based on the manufacturers discretion whether or not it is eligible for a replacement or repair by the manufacturer if it fails during the warranty period. Nobody who sells Milwaukee or Dewalt etc is authorized to make the decision on repair or replacement eligibility. Therefore they are not authorized dealers.
In the Know
I can’t speak for Walmart, but I know for a fact that Amazon buys some of their Milwaukee products from a 3rd party. I know one person who sells to them, and I’m sure there are more.
There are some tools with some nice margins between cost and MSRP, and these are the ones that Amazon buys, as going through the 3rd party would hardly affect their ROI.
Ken
My source inside a NJ Amazon warehouse says “that brand (Milwaukee) is not here at all” so they must be coming from elsewhere.
Frank D
Not all items are stocked at all warehouses. Inhave run into that with some things where I depended on them with 1 order day plus 2 day prime … and it ended up late. AMZ told me it came from a warehouse on the west coast.
I also have seen stuff that comes manufacturer direct.
Jamey
Could be whats is termed “grey market” by being shipped from a foreign supplier outside of the authorised distribution chain.
Rage8767
I have got alot of my Milwaukee m18 tools from Ebay (drill, impact, sawzall, 71/4 circ saw, and oscillating tool) New in box… all have been sent in with E service for warranty work… circ saw,drill and impact multiple times with no problems.. also got the jobsite radio broken on ebay still under warranty and did E Service.. Milwaukee sent me a new one
Joey
Well I can’t speak for Walmart but the “Milwaukee” tools sold on Amazon are not really Milwaukee. Their fakes.. there’s a small warehouse somewhere that makes fake power tools n their sold all over Amazon and eBay n u can’t tell the difference from the real ones. I advise u not to buy power tools off Amazon or ebay either one.