Improving Topline Sales on Amazon Through Systematic 3rd Party Mitigation
A CPG company significantly increased conversion rates and sales on Amazon for two of their brands through identifying and removing unauthorized 3rd party sellers, thus positioning itself for greater success on ecommerce’s most dominant platform.
As Amazon’s dominance over ecommerce sales continues for now, the urgency is growing for brands to ensure that they are maximizing their sales potential on the giant online marketplace. Unfortunately, because of Amazon’s relatively open marketplace for sellers compared to rivals like Walmart, unauthorized 3rd party sellers are pervasive. Over 80% of sales on Amazon go to “buy box” winners. However, brands are losing buy boxes to unauthorized resellers 10-15% of the time. Additionally, 2.5% of trade on the platform is counterfeit and growing. Third-party mitigation cuts back on these unauthorized resellers and counterfeiters.
A CPG company enlisted MPG’s 3rd party mitigation service to help improve sales for two of their brands. MPG’s initial due diligence revealed that the first brand had 221 listings on Amazon across 60 unique sellers, while the second brand had 52 listings with 40 sellers. Using our Amazon reseller management program, MPG discovered 100 Brand Registry violations within two weeks. MPG removed these BR violations at a 90% rate, the highest ever seen by our partner on Amazon.
The program features automated discovery of these violations and seller enforcement across multiple marketplaces to prioritize and remove the worst offenders. It also has a weekly scorecard and impact analysis that includes measures like closed listings, buy box change, and lost sales.
Within the first 10 weeks of the program:
Removed over 90% of unauthorized sellers of Brand #1
Removed over 50% of unauthorized sellers of Brand #2
Discovered over 30 reseller invoices, which will help clients work with distributors to close inventory leakage to these channels
Both brands also improved their buy box win percentages by several points early in the process, leading to increased conversion rates and sales on Amazon. Third-party mitigation can help brands avoid significant damage from unauthorized sellers and better prepare you for the dynamic landscape of ecommerce. As a result of this success, both brands have engaged MPG to manage this program on Walmart.com.
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