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FREE Guide: Brand Policing Best Practices for Amazon Sellers
In the following blog post, we will address common concerns from copyright / trademark infringement to MAP violations and provide brands with the ammunition they need to protect themselves against these types of attacks.
Minimum Advertising Price Violations
Fraud with Commingling on Amazon FBA
Copyright & Trademark Infringement: Signs Retailers Should Look For
1. Supply Chain Relations
According to Allan, Amazon sellers concerned about copyright / trademark infringement should always have open communication with their supply chain relations. Brands should make sure they are in good relations with their manufacturers and take the time to have regular conversations with them.
Brands should also let their manufacturers know if they are concerned about infringement. While it may sound like a simple suggestion – leaks in the supply chain are typically the source for copyright / trademark violations.
2. Drop in Buy Box Percentage
Why copyright & trademark infringement is detrimental to brands
The Amazon Seller Tools & Services MASTER LIST
Minimum Advertising Price (MAP) Violations
As manufacturers grow they can develop relationships with other product distributors. Unfortunately, sometimes manufacturers discover they are being undercut by unauthorized one-off resellers which are not adhering to the Minimum Advertised Price (MAP).
In the following post, we interview Arie Shpanya CEO of Wiser to discuss the challenges retailers face with MAP violations and brand protection.
A MAP price is a minimum amount that resellers agree not to advertise below.
For example, if a backpack company sets a MAP price of $50 for its best selling item than all resellers including brick and mortar stores and Amazon resellers are obligated to advertise this product at $50 or more.
If they advertise the product at a discount of $35, the Amazon reseller would be in violation of the backpack company’s MAP agreement.
When a MAP agreement is violated, retailers can be left at a disadvantage because Amazon ultimately does not take a role in seller pricing agreements.
Typically, manufacturers require resellers to abide by MAP regulations but in the event no MAP agreement was signed – manufactures have little authority to enforce their minimum pricing.
Why is it important for retailers to protect their brand on Amazon?
“The Amazon Marketplace is among the most competitive for online retailers. There is a lot of pressure to have low prices for a few different reasons. First, Amazon itself is a competitor and is generally willing to sacrifice profits for sales.”
“Second, while no one outside of Amazon knows the formula to land in the Buy Box, Buy Box owners are often among the lower prices. Since retailers are under pressure to cut prices to gain sales, brands really need to monitor their resellers’ pricing to make sure that it’s in line with the Minimum Advertised Price (MAP) policy that they agreed on.”
What are the common pitfalls retailers encounter policing their brand on Amazon?
“One issue that retailers encounter is the domino effect. If one retailer drops their prices, their direct competitors are likely to follow suit to stay relevant. They can then be undercut by a competitor, and lose sales and margins, all while tarnishing the brand of products they’re selling.”
Why is MAP enforcement critical for retailers?
“Price is closely related to brand value. When a reseller cuts the price of an item drastically, it dilutes the brand value and conditions shoppers to expect lower prices from that particular brand. It can tarnish the brand’s image and make it hard to sell at a higher price again.”
What efforts can retailers take in an effort to protect themselves from MAP violations?
“Brands need to automate the tracking process, because even with a dedicated team, there’s no way to manually monitor all items being sold and their prices in a finite amount of time. Automation also brings unauthorized sellers to light. Without the information of unauthorized sellers, it’s impossible to completely track every channel.”
“If a price has been decreased continuously, but is restored to its MAP, it can prevent future sales. The best way to solve this problem is to monitor all reseller networks and prevent MAP violations from occurring in the first place.”
1) Commingled Orders Reach Customers Faster
2) Reduce Cost and Labor for Labeling and Fulfillment Operations
3) Avoid Errors with Labeling
In March 2017, Amazon announced they will be expanding their Brand Registry program to remove counterfeit goods from its website.
According to reports, brands will be able to register their logo and intellectual property with Amazon, so that in the event a counterfeit is flagged, Amazon will be able to take down the violating listing and seller account.
You can learn more about the Amazon Brand Registry here.
For more on brand protection on Amazon, email [email protected]