For many e-commerce sellers, stopping confrontation with Amazon may not be a wise idea. So a strategy and mentality adopted by many people is: "If you can't defeat your opponent, join them." And establish a brand on Amazon to become a seller of the platform.
But James Thomson, a former senior manager of Amazon's business development and now a joint venture partner of Buy Box Experts, a brand consulting firm, said that using Amazon as a business platform is not as simple as people think. He believes that companies that want to succeed on Amazon need to understand the following five facts:
1.Amazon is not your colleague-you need to be prepared accordingly
"A lot of brand owners seem to believe that when Amazon ’s wholesale business starts buying your products, there will be a collaborative relationship between your brand and Amazon. You need to realize that the important thing is that Amazon ’s Rarely disagree with your brand motivation. "
Amazon strives to establish an e-commerce platform with the lowest price and most product choices. "When a brand is absorbed by the customers of this platform, you must also pay attention to maintaining your own pricing. Because once the brand's products start to sell on Amazon or the products are sold by third-party sellers, the product pricing will be much lower than The highest average price, Amazon's sales channel may bring frustration to brands. "
why? "Because Amazon has a variety of crawling software, you can sniff the price of the product at any time. If Amazon finds a lower price in other centers, Amazon's price will usually match this lower price. Ensuring a positive experience for Amazon users. Because Amazon rarely shares information with brands about where it finds these lower prices, it is difficult for brands to manage prices across all channels. "
2.Amazon is an open platform-it's hard to stop someone selling your product on Amazon
The Amazon platform is designed to encourage as many sellers as possible to offer products to Amazon customers. "As long as the seller sells non-impersonation products, with proper listing description on Amazon, almost all product categories and brands can stop selling on Amazon. Thomson pointed out:" Thus, if a brand cannot strictly control its distribution channels, It is difficult to control the price of the product. "
Because some unruly sellers may be less likely to abide by the brand's pricing policy, the products are often sold at below the highest average price, which conflicts with other well-managed sales channels. "If a brand has no control over its global distribution, their products may be presented on Amazon in some way, and often sold by unknown sellers at a lower price."
So what can you do? Tighter control means that demand is “eliminated from“ unauthorized sales, sales in gray markets, re-imports, etc. ”— to prevent any situation that would allow sellers to offer discounted products on Amazon.
3. Carefully control your brand content
Amazon website traffic is more than any brand of website. "Thus, if a brand has a product listed on Amazon, then it is entirely possible that the final Google ranking of that content will take precedence over the branded content on its own site," Thomson explained. "So, whether it ’s to ensure that high-quality content is indexed or to ensure that Amazon users can see intact and accurate information about your brand, we strongly encourage brands to upload their branded content to Amazon. Think about most It is difficult for brands to fully control their distribution channels, and it is likely that someone will sell their products to Amazon at some point. This is why we encourage brands to ensure that their correct brand information is presented on Amazon at the same time. Also make sure that brand equity on Amazon differs from content outside of Amazon. "
Make sure your product information on Amazon differs from your insistence on other channels-"Otherwise 200 million Amazon users will get undifferentiated or disconnected audio."
4.The distribution channels on Amazon are controllable
For brand executives who want to control the distribution of their products on Amazon, Thomson has three initiatives. First, brands should invest in an online distributor policy that includes anti-Diversion (Note: Diversion refers to products sold through "unauthorized" channels).
"Executives are able to document how the dealer will sell products online. Although the dealer may choose to ignore the terms of the policy, by doing so, it will be easier for brands to remove Or the wholesaler. "
Second, brand executives should discuss consumer technologies such as RF tags, serial numbers, and even invisible ink (used to track unauthorized sellers to sell products back to specific distributors or wholesalers). "Until executives can identify the source of the product leak, they can effectively close the gap."
Finally, brand executives should work with their legal team to ensure that I do not have any trademarks offended by unauthorized sellers on Amazon. "There are many ways in which brand trademarks can be violated. It is necessary for a brand to properly maintain its trademark on Amazon or any online channel."
He concluded: "A brand owner can decide who can sell their products on Amazon, but this requires continuous channel management, better motivational matching with distributors and wholesalers, and a well-defined, Trademarks maintained by law to avoid being infringed. "
5. Amazon is not only a sales platform, it is also an advertising platform
Although many brands have a negative perception of Amazon because they recognize the results of their products after they have been sold by other sellers, it is important that sellers recognize the strong level of Amazon as an advertising platform.
"Amazon offers a variety of advertising opportunities for major brands, including on Amazon's website (Amazon Marketing Services, Spotted Products) and outside of Amazon's website (Amazon Media Group, Amazon Advertising Platform). Advertising competitors on these platforms include Google And Facebook. Recently, as some brands use Amazon to promote their products and have achieved relatively strong investment returns, the Amazon advertising platform has become more and more popular. Over the past two years, we have seen many brands spend advertising A big part moved to Amazon, as managers realized that they were able to advertise directly to consumers who made purchase decisions. "
Finally, keep in mind that consumers come to Amazon for shopping. "If a brand can successfully attract consumers' attention in the shopping experience, then it is more likely to promote its brand information. Amazon customers often purchase repeatedly, so it is very beneficial to attract customers through this advertising method Graphical. "