Is Amazon a Problem for Brands?

Many of the brand owners we talk with tell us ‘YES!’: Amazon is a problem.

Amazon pricing defies their price targets. They see listings that don’t reflect their own marketing goals. And find sellers they don’t believe are legitimate, perhaps selling counterfeits.

It’s frustrating – and fortunately there are fixes NBP DIRECT can help you with, which we’ll discuss below.

But first:

It’s worth remembering the reason Amazon can seem so troubling for brand owners is because it’s so universally accessible – visible on any screen, big or small.

Brand owners can easily focus on Amazon, but will never discover many other retailers promoting prices below Minimum Advertised Pricing, or using bad product descriptions.

While the “omnipresence” of Amazon can be aggravating, it is actually what makes Amazon such a huge opportunity for almost every retail brand – now, and going forward.

A few facts:

Online retailing is only growing: it’s now between 8-10% of all U.S. retailing. And it’s growing MUCH faster than brick-and-mortar retailing: 15% per year vs. 2%.

Amazon is currently an enormous 67% of all online retailing. It accounts for 60% of all growth in ecommerce.

And more than 50% of all online product searches start on Amazon.

In other words, brands that use the right strategy to place products on Amazon – at the right price, with the right listings and right resellers – are part of the highest growing sector of retailing.

And brands that don’t engage with Amazon in a positive way, are walking away from many current customers, and the customers of the future.

So back to those problems…

Is Amazon is a problem for brands. Well, Amazon isn’t going anywhere, and what Amazon does is expose problems brands already have.

Pricing issues? Amazon is revealing gaps in your MAP strategy.

Unauthorized sellers on Amazon? You may need stronger wholesale agreements, and tactics to reveal leaks in the supply chain.

Bad Amazon listings? You need to take action to clean up listings, and make them reflect the core appeal of your products.

NBP DIRECT is ready to give concrete, customized guidance in all of these areas.

We want to be your partner in making your brand as strong as possible in the growing sector of online retail.

Contact us!

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