Amazon isn't going anywhere. And neither are the sometimes dubious fakes being sold there, or the fact that brands are up for sale even after a company decides to cease their distribution to Amazon. To understand better the impact Amazon has on brands, here are 3 issues affecting brands today.
300+ million shop on Amazon. Most brands jump at the chance to get a piece of that pie, but there are also those brands that feel their brands are too exclusive or high quality to be made available to the masses in such a way. Another issue could be that the factories just wouldn’t be able to meet demand at the moment. As reported by entrepreneur.com, what is one to do with the Amazon sales channel? Here’s the reality of it all:
Your Products Will Be Sold On Amazon Anyway
Whether your brand is already popular, or is on its way up the popularity ladder, you can expect it will be sold on Amazon at some point by someone – whether you like it or not. Amazon welcomes basically anyone and everyone to sell on their platform. They also allow resellers to operate incognito, and Amazon doesn’t care where the sellers source their goods, as long as they’re real, not expired or sold under incorrect product conditions.
Amazon even tells brands directly that keeping their distribution channels under control is their problem. With all of these minimised restrictions for resellers, Amazon has created intense competition, ultimately lowering the prices for Amazon customers.
Pulling your brand from Amazon can be likened to pulling the brand out of every distribution channel.
You Needed To Control Distribution Actively Since Forever
Making short-term decisions can have long-term ramifications. A common decision made by young brands is to fill every order from every interested reseller. This might bolster your company account in the short term, but there’s no control over who is selling your products. Who wants to buy a Rolex from an unauthorised dealer? Isn’t that a bit of a risk?
Usually keeping a minimum advertising price is enough to keep authorised resellers in check, but what happens when those “unwanted” resellers (or authorised resellers selling under secret names) are in our midst?
In other words, young brands should be encouraged to invest in a trademark attorney who can develop an online reseller policy with anti-diversion language. Do actively police your distribution channels!
Your Brand Content On Amazon Is Important
As we've already stated, whether the brand is authorised or not, someone is going to sell it on Amazon at some point anyway. Because these resellers are listing your product and giving it a description that is indexed (sometimes highly) on Google, it isn’t uncommon for these listings to show up higher on the organic, as well as the pay-per-click results, than your brand’s own website!
We know Amazon isn’t going anywhere. We can fight it all we want, but a better strategy may be to leverage the Amazon channel properly. If you can’t beat them, join them.