As a brand manufacturer you should know who sells your products where and at what prices. Through so-called channel monitoring, you can identify at an early stage which online retailers are also selling your products and thus optimise your brand profile in eCommerce.
It was only last year that shoe manufacturer Birkenstock realised that the online giant Amazon was selling its models on their marketplace – including a large number of counterfeit products. The brand manufacturer took action against this and stopped supplying Amazon throughout Europe. But despite this termination of contract, sales of Birkenstock shoes continued on the marketplace. In the conflict between Amazon and Birkenstock, the main point was that the shoe manufacturer does not wish to sell its products on Amazon’s platform. Birkenstock continues to defend itself in court and wants to completely stop sales on the marketplace – so far without success. However, a recent court ruling now gives many companies hope. Brand manufacturers will be allowed to prohibit retailers from selling on platforms such as Amazon.
Channel monitoring: Do you know all the retailers who sell your products?
You don’t know who sells all your products on which channels and at which prices? Don’t worry, you’re not alone: some manufacturers have already lost track and are particularly struggling with non-authorised retailers who are selling their brands. The opening of a sales channel is a difficult and extremely time-consuming task – from the search for sales partners, the coordination of pricing models and discounts, to the implementation of a sales strategy. After all this painstaking work, it is much the more annoying to find that unauthorised retailers are also showing up and wanting to profit from the brand.
Online sales through countless retailers: A curse or blessing for brand manufacturers?
One could imagine that a large number of companies will have a positive effect on the brand in terms of sales. After all, the sales channel is larger and more diverse, which should have a corresponding effect on sales figures. Wrong! In fact, these unauthorised retailers cause catastrophic damage, which can ultimately damage the brand image itself. The consequences of a grey market can be dramatic and should not be underestimated by retailers and manufacturers. How you can escape such a grey market can be read in our article “Preserving your image: How to avoid the grey market“.
Achieve a clear view of sales channels with channel monitoring
As you can see, only if you keep an eye on market developments and those involved can you benefit from the advantages of fast-moving eCommerce and also remain one decisive step ahead of the competition. But what tools are available to brand manufacturers to identify problems at an early stage and take action? A manual search for online retailers who sell your brands is no longer possible due to the flood of data on the Internet. For this reason, many manufacturers use applications to monitor sales channels on the Internet. One of these innovative technologies is our award-winning blackbee software, which supports you as a brand manufacturer in price and retailer monitoring in eCommerce. Thanks to highly valid data available on a daily basis, you are able to keep an eye on your sales partners and protect your brand image at the same time. With just a few clicks, you can gain a comprehensive overview of the market and react to the current shifts in eCommerce at lightning speed.
With channel monitoring you can control your distributors and also escape the grey market. Do you need detailed information about blackbee channel monitoring? Then take a look at our topic-related whitepaper or contact us directly. We look forward to your message!