Amazon sales consultants and branding strategy managers at Buy Box Experts help businesses sell more on Amazon and protect their brand equity. Roggio: Can a brand go back and repair, if you will, those third-party product listings? You can opt out anytime. Brand name products face pricing challenges when listing on Amazon while private label manufacturers face the reality that, at any time, Amazon could enter their category and syphon off sales based on data and lower prices. Thomson: Both of those are brands. She has also been the recipient of six other teaching awards.
In our book, we uncover the many considerations involved in developing and implementing the right Amazon distribution strategy for a given brand. . If the brand will sell, what distribution approach will work best for the brand? The authors discuss different considerations that are crucial in the development and implementation of the correct Amazon distribution strategy for a particular brand. A brand can determine who sells its products on Amazon, but it takes continuous channel management, better incentive alignment with distributors and retailers, and most likely a well-defined, well-enforced trademark program to succeed. Amazon has more customer search and purchasing data than any e-commerce business. The Company also provides full-service account management to help organizations entirely outsource the day-to-day operations of their marketplace channels.
We believe there are five pillars that need to be built and managed consistently for a brand to have a foundation of strength on Amazon. But I recognize that some brands are quite happy just to sell the product and get whatever revenue they can. If Amazon finds a lower price somewhere else online, Amazon Retail will usually match that lower price in order to provide a positive experience for its customers. If the brand ensures that its equity is adequately represented, and it knows and communicates with the companies selling its products on Amazon, then the brand will find itself much more willing and able to turn the Amazon channel from a management headache into an accelerated growth channel that complements what the brand does in every other channel. How do national brands compete with this? According to , the e-commerce giant offers everything from burgers to beauty products under its collection of 34 private-label brands.
As we will discuss throughout the book, the decision regarding whether the brand will be sold on the Amazon marketplace is not always solely within a brand's control. Within minutes, practically anyone can set up a seller account and start offering a product that was sourced through any number of authorized, questionable, or completely illegitimate channels. Amazon leverages data on what Prime customers buy and starts brands based on the purchase intent of their most profitable customers. To learn more about the book, visit. She now runs her own consulting firm to help entrepreneurs follow their dreams. And whether they like the ramifications or not, at least they understand what they are. In our book, we uncover the many considerations involved in developing and implementing the right Amazon distribution strategy for a given brand.
Either option will affect the brand executive's ability to control the brand strategies that will result in profitability and stability for managing the activities on the different channels of the Amazon marketplace. For one, brands should be prepared to launch new brands in under the usual two- to three-year cycle that is currently seen with national brands. The second question is more complex for brand executives. Steiger Distinguished Teaching Award in 2008 and the Lawrence J. We also do a lot of implementation work helping brands run their first-party and third-party businesses. You can opt out anytime. Smart marketers will adapt in ways that both protect and benefit their brands.
Luxury brands also must take full advantage of the prime real estate Amazon offers to showcase their brands, effectively curating the online experience much as they would curate an in-store experience for consumers. It is able to spin up private label brands in six months flat based on data and customer intent. As a result, if a brand does not have tight control of its distribution e. The following are his five tips for successfully selling on Amazon in what can actually be a hostile environment. Clearly, Amazon should be fertile ground for virtually all brands. So where should a brand start to develop knowledge and put clarity around the available options its brand can take on the Amazon channel? Amazon also uses supply and demand by making some of these private label brands only accessible to Prime customers. Brand name products face pricing challenges when listing on Amazon while private label manufacturers face the reality that, at any time, Amazon could enter their category and siphon off sales based on data and lower prices.
Amazon does not care who it competes against Private labels provide Amazon with an opportunity to create revenue by leveraging data that they already own. Larson Excellence in Teaching Award in 2005. The executive can document how the brand wants to have its products sold online. James is also a partner in Buy Box Experts, a consultancy supporting brands selling on Amazon. So the way you think about controlling what happens on Amazon is very different from how you get products into a sports store or a drugstore or a grocery store. There should be the assumption that products from popular brands will eventually end up for sale on Amazon, regardless of whether the brand wants their products sold at Amazon or not. He is the former head of Amazon Services — the team responsible for recruiting nearly all third-party sellers onto the Amazon marketplace.
So, whether for the purpose of ensuring high-quality content is indexed on the web, or to make sure Amazon customers are seeing complete, accurate information about the brand, we strongly encourage all consumer brands to load their content onto Amazon. James Thomson is Partner with , and president of the. The private label end game Besides generating additional revenue, the real reason for these private labels is to provide Amazon with an advantage over branded products. The brand executives should document how the brand wants its products sold online. All that comes with the taste in the bottle is called brand equity. Brand executives need to address two important questions when dealing with the Amazon marketplace: Is the brand going to sell on Amazon's marketplace? According to the e-commerce giant offers everything from burgers to beauty products under its collection of 34 private-label brands. Amazon is not your partner — start behaving accordingly Too many brands have the belief that when Amazon Retail reaches out to buy product, somehow a partnership is being formed between the brand and Amazon.
He is now co-founder and partner of , a consultancy, and co-founder of , an annual conference for Amazon sellers. And for that brand equity, Coca-Cola gets to charge a premium. Who is responsible for ensuring the content is accurate, complete and consistent with branding efforts in all other channels where the brand is sold. Brand executives have to decide whether to Sell to Amazon or Sell on Amazon. Amazon is gaining share from and growing this business at max speed. If a brand can intercept the consumer right at the point of placing their order, the brand is much more likely to get its message heard — and its product sold.
James Thomson was formerly head of Amazon Services, the division of Amazon responsible for recruiting tens of thousands of sellers annually to the Amazon marketplace. A solid foundation and adequate maintenance of Amazon can help a brand's presence in the marketplace and impact its profitability. The advantage is that Alexa picks over branded products when customers voice-search for products. Hosts Americus Reed and Barbara Kahn are joined by Tami Kim Assistant Professor of Marketing, University of Virginia Darden School of Business , Xiaoyan Deng Associate Professor, Ohio State University , and Rebecca Hains Professor of Advertising and Media Studies, Salem State University on the Wednesday, March 13, 2019 edition of Marketing Matters. No one has more incentive than the brand to control brand equity on Amazon. Adapting to Amazon Some higher-end brands have taken even more dramatic steps: Jonathan Adler, for example, sells its Now House line of home furnishings exclusively on Amazon, giving the brand the ability to completely customize how its products are presented and positioned for Amazon shoppers specifically.