Amazon is one of the largest and most competitive online markets worldwide. To compete, brands tend to implement several tactics for both promotion and self-protection.
Whether you are a new brand looking to break into the Amazon marketplace or an established brand looking for a bigger presence, here are three smart things that brands do on Amazon:
Amazon MAP Pricing Enforcement
MAP is the minimum advertised price which should be set by the brand. Before setting a MAP, it is important to consider manufacturing, advertising, and shipping costs as well as your selling points. Unfortunately, not all third-party resellers will follow a brand’s MAP guidelines which can result in undercutting your profits. To protect themselves, many brands implement Amazon MAP pricing protection. In most cases, brands will hire a reliable outside company to help ensure that their products are not sold below their minimum standards.
Working With Third Parties
While working with third-parties comes with a variety of risks including MAP violations, there are also plenty of benefits to having someone else sell your product. For instance, third-party sellers provide their own advertising at their own cost. Third-party sellers often work harder to ensure that their advertisements are seen by the Amazon algorithm. They also will put their reputation on the line for you, since they are selling from their own stores and providing customer service. A well-reviewed, ethical, third-party can be an asset to your product.
Bring Buyers Back To The Brand
Many brands offer rewards and points for buyers who return and engage with the band no matter where they purchase the product. An Omni-compatible rewards system allows consumers to redeem points even if they purchase from third parties. Meanwhile, the system also encourages consumers to recommend, review and contribute to the brand image by offering additional participation points.
While the Amazon marketplace is competitive, there are ways to protect your brand from MAP violations and unauthorized third-party resellers. At Amazia, we specialize in guarding brand interests on Amazon. Contact us today to see what we can do for you.