In the dynamic world of Amazon sales, unauthorized reselling poses a significant threat to brands. These resellers often undercut prices, disrupt controlled distribution, and potentially damage the brand’s reputation. To safeguard profits and brand integrity, a methodical approach to phasing out unauthorized resellers and implementing quality checks for approved resellers is crucial.

The benefits of authorized and controlled resellers

Having authorized and controlled resellers on Amazon offers several significant advantages for brands. Firstly, it ensures that the products sold are legitimate and meet the brand's quality standards, thus maintaining the brand’s reputation. Authorized resellers can extend a brand's reach, tapping into diverse customer segments and geographic markets that might be difficult for the brand to penetrate on its own. They also help in maintaining pricing integrity; with controlled distribution, brands can avoid the detrimental effects of price wars that often occur with unauthorized sellers. This leads to healthier profit margins and a more stable market presence. Additionally, authorized resellers can provide valuable market feedback, contributing to improved product offerings and strategies. By fostering a network of trusted resellers, brands not only enhance their market positioning but also build a foundation for sustainable growth and customer satisfaction on platforms like Amazon.

Understanding the Impact of Unauthorized Reselling

Unauthorized reselling on Amazon can lead to price wars, eroded margins, and diluted brand value. Customers might receive products that aren't up to the brand's standards, leading to negative reviews and a tarnished reputation. To combat this, brands need a structured plan to identify and manage authorized resellers while curtailing unauthorized ones.

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Here is Nectar’s three-phase plan for reseller control.

The Reseller Control Plan

Phase 1 - Vet and Select Authorized Resellers

Initial Steps:

1. Identify Candidates: Begin by listing potential authorized reseller candidates. This list will form the basis of your controlled distribution network.
2. Set Contract Terms: Establish clear contract terms. This includes which products resellers can buy and sell, MAP requirements, and specifics about multipacks or unique offerings.
3. Content and Advertising Controls: Implement guidelines that require your approval before making any listing changes or creating new ASINs (Amazon Standard Identification Numbers).
4. Reseller Support and Requirements: Ensure support for resellers in terms of product certifications and enforce facility inspection standards.
5. Finalizing Agreements: Get authorized resellers to agree to these terms, solidifying the partnership.

Phase 2 - Phase Out Unauthorized Resellers

Over a 3-Month Timeline:

1. Notify All Customers: Send out a notification about the policy change and a grace period for selling through existing stock.
2. Update Agreements: Amend current agreements to reflect new terms and conditions, making future purchases conditional on acceptance of these terms.
3. Cease and Desist Actions: Prepare C&D letters, especially tailored for Amazon, to send to unauthorized resellers.

Phase 3 - Monitor and Enforce Policies

Ongoing Process:

1. Internal Controls: Develop a checklist to vet new accounts, ensuring they align with your e-commerce policies.
2. Regular Audits: Implement a schedule for auditing reseller activities. Utilize tools for scanning Amazon to identify all resellers.
3. Enforcement: Create a process for sending C&D letters to unauthorized resellers and close accounts for non-compliance.

Practical Tips:

• Regular Monitoring: Consistently review advertised ASINs to check for any unauthorized selling activities.
• Utilize Amazon’s Tools: Leverage Amazon’s features like Brand Registry and Product Beta for better control and monitoring.
• Clear Communication: Ensure your communication with unauthorized sellers is firm yet professional, emphasizing brand protection.

Conclusion

Managing Amazon resellers requires a strategic, phased approach. By meticulously implementing these steps, brands can effectively control their product distribution, maintain a healthy pricing strategy, and protect their brand's integrity on Amazon. Nectar's team of Amazon experts is standing by and ready with methods to execute each step in painstaking detail. Protecting and growing you brand is serious business and if you need help, don't hesitate to reach out.