There are many challenges when growing your brand on the Amazon marketplace. The loss of profitability is a major one that could be caused by many different issues which endanger your brand if you don’t acknowledge them on time. In this article, you will find the root cause for the loss of sales on Amazon that will put your brand in danger.

Poor quality content

Amazon is all about first impressions. Millions of sellers are always trying to get customers’ attention. The content you present is what your customers will judge about your product. Your product title, image stack, A+ content, bullet points, and product description are all part of your Amazon content. 

High-quality content means better listing and more attractive listings receive more traffic, meaning more sales. Because of this, you can’t afford to present poor-quality content. It will confuse your customers, misrepresent your brand, and cause you to lose sales.

Losing the Buy Box

The Buy Box has been increasingly important on Amazon. Losing it can be catastrophic to your brand, as you’ll also lose potential sales, competition, and your professional image. 

Listings are community property. The people who sell your brand are in an equal condition regarding selling your product and all that comes with it (listing, image stack, and feature description). The seller who controls the listing has contributorship, and it won’t always be the brand. It may be a seller with the best historical performance.

Of course, you can remove a listing that uses copyrighted images, for example, but you can’t stop your product from being listed on Amazon.

This is how Amazon works. 

But how is it happening?

Customers will almost always choose the cheapest option available. If your brand has too many sellers competing with each other to achieve the lowest price possible, they’ll directly hit your brand because they’ll go after the Buy Box, making your listing more vulnerable than its competition.

Buy Box suppression

Amazon has a Marketplace Fair Pricing Policy, which enables them to suppress your product listing from the Buy Box if it’s available at a lower price on other websites. 

To control the Buy Box, you have to consider other factors besides pricing that also play a vital role. These are:

• Customer service
• Quality listings
• Inventory levels

If you are struggling with some of these factors and losing the Buy Box is possible, then you must do everything you can to avoid Buy Box suppression, as more than 80% of customers shop directly through it on Amazon. 

Unauthorized sellers

The issue of unauthorized sellers on the Amazon marketplace has persisted over the years. They harm your brand in many ways and are very difficult to control.

Price erosion

Unauthorized sellers can gain access to the Buy Box by subverting your minimum advertised price. By doing this, they steal your sales and lower your brand’s value, creating a devastating cycle that diminishes the value of your products, thus hitting your brand’s competition and profitability. 

Poor product reviews

They can cause poor product reviews that mislead customers by delivering damaged products and offering poor customer service. This harms your brand’s image and listing, causing you a loss of sales.

Amazon Brand Registry

One way to defend yourself from unauthorized sellers is the Amazon Brand Registry, a program that aims to identify brand owners to Amazon. By signing up for this program, you can protect your product content and intellectual property. 

How it works

Amazon Brand Registry offers a dedicated team that brand owners can contact. Their main objective is to remove infringement content online. They report intellectual property infringement, policy violations, listing issues, and technical issues using technology developed specifically for these tasks. You can learn more about Amazon Brand Registry here.

Price Matching Problem

Price Matching is a commercial strategy that aims to improve customer loyalty and brand trust. It usually consists of reducing a product’s price in a retail store to match a lower one from the competition or an eCommerce discount. 

The problem

Customers usually look for the best possible price online before purchasing in the retail store. This means that the discounts Amazon offers can hurt your retail locations. To fix this, brands usually cover up the difference between the normal retail price and the discounted one after price matching. 

This approach works, but if it becomes the norm, your brand will lose money with each sale because it will have to cover too many costs. 

Conclusion

Maybe you recognize these problems in your business. Poor quality content misrepresents your brand. Unauthorized sellers harm your competition, while Buy Box suppression and the price matching problem destroy your profitability.

Bellavix can help you rise above all of these issues by multiplying your sales and offering guidance toward success.