The Brand’s Predicament on Amazon:
A well-known specialty pet supply brand was facing pricing issues. After establishing a relationship with Amazon in 2017 to open a new, growing sales channel, problems associated with their arrangement escalated directly alongside Amazon’s traffic skyrocketing.
While Amazon presented itself as a promising channel for the brand, they were experiencing price erosion, profit loss, and damaged relationships with other retailers due to a lack of control and optimization of prices and listings on Amazon.
With over $75 Million in total sales and their Amazon channel increasing to $4.5 Million, the brand needed to avoid future profit losses and further damage to its brand reputation in the retail market.
AMZ Atlas helped the brand to accelerate eCommerce, take back pricing control, create greater value on Amazon, and repair relationships with other retailers with a one-of-a-kind Amazon strategy. Read on to learn how this was accomplished.
How it All Started: Product Prices Were Eroding on Amazon – And Along With it Their Faith in Amazon as a Profitable Sale Channel
Other retailers were demanding answers. The brand’s low-price pet product growth on Amazon was undermining their pricing on other channels and pressuring them to lower across their product portfolio metrics. The brand not only needed to regain control of its listings but also reclaim its pricing power.
1 – Missing the MAP
Pricing had dropped from 20% to 33% below the minimum advertised price (MAP) on Amazon.
Their own listings were competing with multiple unauthorized third-party resellers that were breaking MAP. The brand needed a plan to take control of unauthorized third-party sellers and enforce their MAP so they could regain pricing power.
2 – Downward Pricing Pressure Removed Pricing Power
The unauthorized sellers had created downward pricing pressure for the brand on Amazon. These lower-priced listings were undermining their true pricing and causing price pressure across their product portfolio.
3 – The Brand’s Reputation at Risk with Consumers and Retailers
Due to the mix of unauthorized product listings, the brand’s products were represented in a myriad of ways by different sellers at prices below MAP challenged their relationships with The Big Three retailers. The brand needed to regain control of its brand presence on Amazon to strengthen its relationship with other retailers and grow eCommerce sales off and on Amazon.
4 – Declining Revenue
Revenue was suffering despite rapidly growing Amazon eCommerce sales volume. The downward pricing pressure had shrunk their margins.
With prices being pushed lower and lower, volume increased considerably, putting the brand in a riskier financial position.
How do brands get here?
Unauthorized resellers, competing listings, and unchecked pressure to keep prices unsustainably low frequently leaves companies selling on Amazon Vendor Central feeling stuck and powerless when it comes to pricing. The good news? It’s something that with the right guidance can be overcome. Click here to learn how.
How The Pet Supplies Brand Regained Control and Accelerated eCommerce Sales on Amazon
AMZ Atlas worked with the client to create a comprehensive and one-of-a-kind Amazon strategy based on the customer’s brand, goals, and performance analytics, yielding best-in-class results.
Working with AMZ Atlas allowed the brand to increase its gross margin while also strengthening its relationships with other merchants. After seeing their growth, the brand realized the enormous opportunity that Amazon Marketplace presented, and they became best sellers on the e-commerce website.
TESTIMONIAL: “Control on Amazon has led to more orders from other brick and mortar customers and e-commerce sites!”
The Impact of AMZ Atlas’s Solution:
The pet supply brand saw quick financial and retail partner relationship growth by working with AMZ Atlas. They saw success in the following areas:
- All Amazon pricing at or above MAP
- 24% increase in gross margin,
- $550K+ decrease in co-op fees and added services
- Improved relationships with ”The Big 3” retailers
How Brands Can Regain Pricing and Brand Control on Amazon
Long-term success on Amazon goes beyond sponsored listings and advertising dollars. Consolidating your Amazon presence to a single reseller focused on your brand will benefit your entire business while preserving Amazon sales. And, a strategic approach will best set up your brand for success and profitability long-term. With a strategic Amazon eCommerce acceleration partner, brands can achieve the following benefits:
- Regain pricing control
- Increase sales volume
- Protect your brand
- Grow revenue
- Grow sales with other retailers
- Increase accuracy of forecasting
- Tighten inventory management
How AMZ Helps Brands Accelerate eCommerce Sales
AMZ Atlas is a strategic Amazon eCommerce acceleration partner that steers brands through the complex terrain of Amazon to regain control and drive optimal results on Amazon. Instead of simply increasing your ad budget, we focus on optimizing the fundamentals (brand, product, pricing, and inventory) first, then obsess over finding the best way to build long-term value for your brands.
Our team is made up of ace strategists and tacticians, from former brand managers with hard-earned Amazon success to specialists who live and breathe the world of Amazon commerce, and veterans in areas like retail pricing, inventory, brand protection, and operational experts who thrive on efficiency.
We’re confident we can help you because we’ve scaled the highest peaks of Amazon ourselves and helped others do it.
Get a Missing Amazon Profit Assessment
Are other Amazon sellers profiting from your products without your permission? Are you missing out on Amazon’s low-hanging profit growth opportunities? Through this assessment, one brand recently discovered over $40,000 in monthly recurring sales they were unknowingly giving away on Amazon. Get a free “Missing Profit Assessment” from AMZ Atlas to see how much money you can save by regaining control of your brand on Amazon. Request a free assessment by contacting us today.
