Navigating Brand Protection Obstacles Faced by Brand Executives on Amazon with Pathway Products
At Pathway Products, our dedication to thorough research and comprehensive data analysis boosts our understanding of brand performance on Amazon. Our investigation uncovers the common challenges that businesses globally confront while selling on Amazon. We're excited to share insights about the difficulties brand executives face in the quest for brand safeguarding on Amazon. The issues, consistent across geographies, mainly fall into two categories: preserving marketplace command and realizing profitable ecommerce growth.
Let's decode these obstacles:
Preserving Marketplace Command
Retaining command in the marketplace is fundamental to brand protection on Amazon. This entails aspects like managing price points and thwarting unauthorized sellers. Four main areas of concern have been identified by brand CEOs which potentially undermine marketplace command:
Fighting Against Price Erosion
The premier concern for most brand CEOs is the battle against price erosion. The adverse effects of price erosion resonate across all sales avenues, affecting both pricing and performance. Uniform pricing on Amazon is crucial, despite the quality of the product. Any inconsistency can harm your brand's image across all markets, including brick-and-mortar retail outlets.
Overbearing Competition from Third-Party Sellers
The presence of an excess of competing third-party sellers poses a challenge to brand protection on Amazon. The problem emerges when these sellers distribute your products on Amazon, resulting in sales that aren't accredited to your brand. Generally, these sellers aren't invested in maintaining your brand's reputation.
A viable approach to overcome this competition involves continuously securing the Amazon Buy Box through stable pricing and inventory management.
Unfavorable Business Terms
Unfair business terms represent another hurdle in brand protection on Amazon. Executives frequently face adverse terms such as AVN negotiations, hidden Amazon fees, and operational expenses like vendor flex, charge backs, and shortage claims in a 1P Relationship. Paying for different levels of support can also create a negative chain reaction affecting all aspects of a brand's operations, including retail, physical stores, D2C, etc.
Sales of Out-of-Date Stock by Third-Party Sellers
There are instances when third-party sellers might acquire and sell your obsolete stock on Amazon. Such sales not only fail to contribute to your brand but also endanger your brand equity. Outdated stock may not be congruent with your brand's current image, causing issues related to brand recognition and trust.
Facing Challenges in Profitable Ecommerce Growth
Our ecommerce framework identifies traffic, conversion, pricing, and availability as vital contributors to revenue performance and ecommerce growth. However, there are challenges that might hinder the realization of profitable ecommerce growth on Amazon:
Precise Sales Forecasting
Precise sales forecasting poses a significant challenge for brand execs on Amazon. Absence of accurate data and technology can lead to a speculative approach towards sales and inventory predictions.
Venturing into new marketplaces like Walmart or aiming to enhance your brand presence in different regions requires a thorough analysis and data on customer preferences, inventory requirements, and shipping logistics. Accurate sales forecasting and satisfying consumer demands are vital for a successful Amazon marketplace presence.
Profitability of Products
Before listing products on Amazon, brands need to ensure the profitability for both themselves and Amazon in a 1P relationship.
Unprofitable (CRaP) items on Amazon are not featured in personalized fees, advertisements, or recommended products, resulting in reduced sales. Over time, Amazon discontinues ordering these items from their vendor partners.
Pathway Products: The Guardian of Your Brand
Pathway Products, as a third-party partner on Amazon, supports brands in retaining control and safeguarding their brand on Amazon. We supervise every aspect of your Amazon presence, overseeing everything from brand control to listing optimization and customer service.
Identifying a profitable Amazon business model is becoming increasingly vital for brands as the marketplace continues to grow. As the data aficionados at Pathway Products, we provide all necessary information to brands selling on Amazon, helping them fine-tune their Amazon strategy and elevate revenue.
Fortify your brand with the resources and technology provided by Pathway Products. Reach out to us today.
