Proactive Channel Management on Amazon
Over the years, we have learned that having clean distribution on Amazon is crucial to success. Brands that don't exercise proactive channel management can see their brand compromised by third-party resellers.
At Marketplace Strategy (MPS), we support clients through this process. This allows their listings to thrive and build important sales velocity without interruption. Having a clean distribution helps brands avoid conflict with other retailers. Accurate listings with up to date information and variation structures also help protect their reputation. Here we share considerations for brands looking to clean up their presence.
Establish a Common Ground with Authorized Sellers of Your Product
An important first step of proactive channel management is taking stock of the authorized sellers of your products on Amazon. Understanding this landscape can help brands establish effective agreements and policies.
Documenting best practices and requirements for authorized sellers helps preserve the customer experience. Further, it can be used to formally address sellers that fail to comply before taking legal action. We recommend this so brands can develop a strong foundation in the event more action needs to be taken.
Regularly Monitor Your Catalog and Identify Suspicious Activity
Being proactive requires brands to regularly monitor the status of their catalogs. Then, the ability to identify signs of disruption will help minimize repercussions. Some of the most common examples to look for are an influx of resellers, negative feedback, or a lower Boy Box percentage. These are signals that a brand is losing control of its catalog.
Detecting unusual activity as soon as possible is crucial to be able to take swift action. Otherwise, unresolved issues can evolve into something more difficult to remedy.
Leverage Expertise that Spans Amazon’s Entire Ecosystem
Another fundamental component of maintaining a clean distribution is operating with a holistic approach to the channel as a whole. A full-channel strategy is the only way to understand everything happening within a brand's catalog. For example, content, creative, and technical strategy each contribute to a listing. And when something is incorrect or incomplete, a brand's catalog can become vulnerable.
Without expertise that spans all facets of Amazon, it's more difficult to identify issues and work toward a resolution. For example, we ensure our clients are positioned to combat illegitimate third parties. Brands that aren't on top of suspicious activity risk the integrity of their catalog. For example, if third parties latch onto a brand's variations, shoppers can become confused and conversion can decrease. When something like this goes unresolved, sales are negatively impacted.
Protect Your Brand’s Integrity through Legal Support
Another way to protect your brand is to become Brand Registered. This will make it more difficult for third parties to infiltrate a catalog in the first place.
But, when it's necessary to take it further, brands have several options. As we mentioned, legal action is something brands have to pursue on occasion to protect their distribution. For example, brands can send resellers a legal notification in the form of a ‘cease and desist’ letter. Or, if there's suspicion of counterfeit products, brands can file a formal complaint with Amazon.
Proactive channel management is essential to a clean distribution on Amazon. Further, it can make all the difference to a brand’s success and trajectory on the channel. Without it, brands run the risk of overlooking major problems that can lead to much larger and impactful challenges.
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