Do you dream of living in a utopia?
A world everyone carries a fair share of the workload and is rewarded according to the extent of their needs?
Where all individuals come together for the common good?
Ahhh, it may be nice to dream about. (Or maybe it sounds awful to you.)
Regardless of your personal views, you know we don’t live in this type of world.
So we are curious.
Why are you currently running your Amazon Strategy this way?
What do we mean by this?
Well, do you have more than one single dealer selling your company’s products on Amazon?
So, ask yourself this:
Which of your dealers are doing the hard work necessary to consistently grow your company’s sales? And which of your dealers are reaping the rewards of that hard work?
All of them?
One of them?
None of them?
If you answer "all of them" then yes, you might be living in a dream world.
But the answer is most likely "none of them".
Not one of your dealers is doing the work necessary to grow your brand, because each one of your dealers is focused solely on maximizing their sales and profit, not yours.
Your dealers are fighting against each other, not fighting for you.
What does it take to consistently grow your sales, protect your brand, and minimize the headaches Amazon causes for you?
High quality product photos
Thorough product descriptions
Clean, consolidated product listings
Reviews Solicitation Campaigns
Excellent Customer Support
Which of these cost time, money and expertise to implement?
All of them.
Let’s say you have 10 dealers selling one of your products on Amazon.
Name your dealer that is spending the time, money, and their expertise to improve your product listings when they have to split the sales among 9 other competitive sellers and the only thing that one of those competitive sellers has to to do capture 100% of the sales volume is undercut everyone else’s price by 1 penny?
Which dealer is going to subsidize the other 9 so that your brand can continue to grow?
If you live in the business world and have to earn your income, you know the answer.
Also, you might also see why you have consistent MAP violations.
None of your dealers are focused on growing your brand.
There are only two ways that you can guarantee that all of the work necessary to grow your brand and revenue gets performed.
Kick all of your dealers off of Amazon and use an exclusive Amazon Retail Partner (Like Etail Hero).
Kick all of your dealers off of Amazon and do all the hard work yourself, internally at your company.
The first half of the process is the same.
The second half depends on how much work you want to do yourself, and how much you want to build this expertise from scratch.
Do anything else and you're going to be disappointed.
Do anything else and you'll see poor revenue growth and an increase in the amount of problems that you attribute to Amazon.
That includes keeping a handful of "good dealers" on board.
Why do you sell to the retailers that you do?
Ideally, it is because they add value in their channel of expertise.
Whether they have a physical store, or a niche retail site, they know how to properly market your products to their customers.
They are getting new customers for your brand.
But on Amazon, if they aren't running reviews campaigns, aren't running advertising campaigns, aren't responding to customer questions, aren't monitoring and optimizing your listings, then what are they doing?
Simply flipping your inventory over to Amazon does not add value to your brand.
You can do that yourself at much higher margins.
Right now, you're simply subsidizing their businesses because you like them.
Why not mail a monthly check to your friends too?
If these re-sellers ran their own businesses the way they run yours (no customer support, limited to no expertise, no advertising, poor product photos, poor store organization, etc.) they would severely damage their brand and probably go out of business.
However, when customers purchase on Amazon they don't realize they are buying from "Seller #6 of 12", they honestly believe they are buying it directly from the manufacturer.
When your sellers screw up, or provide a poor experience, the customer's view of your brand is what is damaged.
At the end of the day, if "Seller #6 of 12" helps drive your brand reputation into the ground, they can just stop selling your products and move on.
It is also difficult and unsustainable to retain multiple "good" Amazon sellers.
Your pricing and margin structure should currently be set up to give dealers the margins they need to effectively operate their business.
When you sell on Amazon with a "multiple dealer" strategy, your company is the one that is ultimately responsible for growth in this channel.
You have to carry the financial burden of optimizing the listings, running advertising, providing customer support, soliciting reviews, responding to feedback, and policing MAP.
If you're using a pricing structure that allows your dealers to shoulder these costs within their respective channels, but then you are the one actually paying for all of these costs in the Amazon channel, while they simply flip the products there and split the profit, it is not going to be sustainable.
Imagine building a sales, service, marketing & operations team capable of delivering $10,000,000 per year in revenue to your business, while supporting them on 1/5th of the revenue?
You'll never reach that size with a "share the profits with dealers that don't actually contribute to them" business model.
We know every company has different needs.
Sometimes it seems like the risk of upsetting "good dealers" is too high, and that is understandable.
You don't have to do this as the flip of a switch.
But go into the Amazon discussion understanding all the costs and challenges of trying to keep everyone happy.
We believe a "single seller" strategy is the only way for a small company to deliver long term sustained sales growth on Amazon.
Why do we feel so strongly about this?
Because we used to do it the old ways with poor results.
But now we do it this way with exceptional results.
Before we started Etail Hero, several of us worked together at a company that took the typical approach to managing our Amazon channel.
We had MAP pricing.
We restricted small sellers, or ones without retail stores.
We emailed our sellers warnings when they violated MAP.
We even created many of our product listings ourselves.
It didn’t work and Amazon was a mess for us.
And guess when sellers like to violate MAP?
Or any time they think you're not watching
Once we got our act together and took back control of our brand on Amazon, the results were staggering.
Over the course of 4 years, the company’s Amazon channel revenue grew from less than $30,000 per month in sales, to over $500,000 per month.
That's 100% per year, for 4 years straight.
The same results are possible with your brand.
But you have to follow the right process.
If you would like to understand more about the process we used to do this, or if you would like to talk to someone about how we can help your company take back control of their brand and start growing their revenue, send us an inquiry.