1. Pay attention to monitor product prices and inventory
As an open platform, Amazon seldom limits price competition among all sellers. Because Amazon has been looking for low-cost products, and at the expense of sales in exchange for profits, eager to new brand settled in, which accelerated the decline in product prices.
In addition, Amazon recently began to voluntarily bear the cost of third-party sellers to sell products at a discount, which in the end may result in higher sales. but Amazon's discount strategy may pose a challenge to sellers inventory planning and may leave Amazon sellers violate the lowest price agreement with the brand unknowingly.
2. The implementation of e-commerce distributor policy
Although brands may find ways to limit the number of authorized sellers on Amazon, the platform's openness in fact offer the sellers in grey market an invitation letter.
If the brand has no means to control global distribution, the product may appear on the Amazon, sold by unknown sellers, and the price may be lower than the lowest price than the brand expects.
Therefore, brands must deal with the product distribution, gray markets and re-import issues. Brands can be set out in the dealer's policy to prohibit distributors from resale or to transfer product inventories to unlicensed dealers.
Brands can also use RFTags tags, serial numbers or even invisible inks to track down unauthorized sellers' products and pinpoint the root causes of product leaking.
3. Control product listing content
To be successful in 2018, brands owner must control and test their listings on Amazon, even if they do not plan to sell on the e-commerce platform. Otherwise, they will at a risk that putting their own brands linked to other seller's product listings.
According to a BloomReach 2016 study, 55% of product searches in the United States start with Amazon and only 28% start with search engines. As more and more traffic to the Amazon, the product listing content has also become part of Google index.
Considering that Amazon is an open platform, almost everyone can publish products on the platform, the brand need to make sure to create a new product listing, and promptly maintain the listing. Otherwise, other sellers may be first to create counterfeit listing.
4. The use of Amazon ads
For sellers, it is important to measure which Amazon ads fit the budget.
Over the past two years, the brand owner has moved most of its advertising budget to Amazon. The reason is simple, they realize that it is more effective to advertise for people with shopping intentions.
Amazon offers on the platform including AMS marketing services, SponsoredProducts, as well as AmazonMarketing Group and AmazonAdvertisingPlatform advertising platform.
Recently, these platforms have garnered increasing attention as some brands have enjoyed relatively high ROI rates by using Amazon's promotional offerings.
5. Watch out for the Amazon
Many brands owner believe that when Amazon purchases their products, the two sides have established cooperation.
Brands rely on the platform to attract consumers, and expect original pricing for their product is not affected. But Amazon wants to offer consumers plenty of product choices at low prices, even at a loss.
Brand owners need to remember, the original intention of Amazon rarely same with the brand, but the brand still have to develop coping strategies.