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Amazon is a powerful sales channel, but sometimes it can feel more like a battlefield than a lucrative marketplace. Amazon channel conflict, unauthorized sellers, price erosion, and brand control issues can leave you frustrated and unsure how to proceed. But with the right strategies, selling on Amazon doesn’t have to be a pain point — it can become a highly profitable venture that works for you.
In a recent webinar hosted by Brian Beck from Enceiba, industry experts from TrackStreet and KJK Law came together to discuss how brands can eliminate channel conflict on Amazon. Here are some key takeaways and action steps every brand should consider.
Amazon channel conflict typically arises when multiple sellers offer the same product on Amazon, often at different prices and with inconsistent brand representation. In addition to leaving customers confused as to which seller they should buy from, this can lead to a number of negative issues, including price erosion (especially when unauthorized sellers undercut pricing) and loss of control over the customer experience, messaging, and product quality, as well as tension with authorized distributors and retailers who may struggle to compete.Brands often find themselves reacting rather than proactively managing their presence. But with the right framework, they can regain control.But how do you gain and maintain control of the Amazon marketplace?
One of the biggest mistakes brands make is not defining a clear Amazon strategy. Are you treating Amazon as a direct sales channel, a brand visibility tool, or a hybrid? Each approach requires different tactics.For example, you should decide whether to sell to Amazon as a vendor (1P) through Vendor Central, or as a third-party seller (3P)through Seller Central. Seller Central gives you more control over price and branding, while Vendor Central offers direct purchase orders from Amazon and guaranteed Amazon Prime status for goods sold. Additionally, create a plan to ensure only authorized sellers can deliver your products. Consider having an authorized reseller policy and distribution agreements with distributor partners.
Unauthorized sellers can wreak havoc on your Amazon channel. But it doesn’t have to be that way. Most unauthorized sellers appear on Amazon because of uncontrolled distribution. As a brand, you must tighten up your supply chains to prevent leakage. Here are a few tips that can help:
Having a MAP policy is important, but enforcement is what drives real change. Brands must be vigilant and consistent in enforcing their MAP policy for maximum protection. Be sure to monitor Amazon regularly for MAP violations. When discovered, promptly send violation notices to those vendors not in compliance. Of course, constantly monitoring of Amazon for these types of violations is nearly impossible to manage manually. That’s why we recommend using a MAP enforcement and brand protection solution like TrackStreet to track pricing and seller behavior.
Controlling Amazon channel conflict isn’t just about preventing bad behavior; it’s about making your brand stronger on Amazon. Protecting your brand’s reputation helps ensure consumer confidence and trust. Try to stick to A+ content and brand stores to foster a consistent, engaging experience. Respond to customer reviews (good and bad) and make sure your product detail pages are accurate and optimized. Finally, educate your customers on the benefits of buying from authorized sellers, including warranty coverage and customer service.
Sales, marketing, legal, and distribution teams all have a stake in your Amazon strategy, but too many brands operate in silos, making it difficult to e. Internal misalignment often leads to inconsistent execution and missed opportunities. That means it's critical to ensure that everyone is on the same page. Create cross-functional teams focused on Amazon and share data and goals across departments. Make sure everyone understands the long-term value of brand control over short-term sales gains. When everyone is aligned and in agreement, it’s easier to build and enforce a winning strategy.
Amazon doesn’t have to be a source of conflict. With a proactive, strategic approach, you can take control of your Amazon presence, protect your pricing, and create a positive customer experience.The brands that win on Amazon are the ones that stop treating it like a side project and start treating it like a core channel.By clarifying your strategy, locking down distribution, enforcing your policies, and investing in your brand, you can transform Amazon from a liability into one of your most powerful growth engines.TrackStreet’s experts can help you navigate the ins and outs of selling your products on Amazon. Schedule a no-obligation consultation today!
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