Pure Brazilian brand was intended to be sold via a network of professional salons and stylists at a premium price point. When brand’s products started to appear on Amazon, everyday trading price went to less than 50% of retail and there were over 20 unauthorized resellers competing for the buy box. This Amazon frenzy was undermining Pure Brazilian’s main distribution strategy success while making their most loyal customers unhappy. To make matters worse, some resellers were selling store returns in unacceptable condition and damaged packaging, while others sold opened bottles with diluted content as new.
- Over 20 unauthorized resellers
- Price dropped below 50%