For manufacturers, being an Amazon seller has many benefits, it’s an excellent storefront to act as either a complete web shop for your product lines, or a great compliment to your website attracting a different audience. In general, manufacturers are in the best position to provide reasonable pricing and the best service to Amazon customers, and if using Amazon fulfillment, it can be a nice, relatively hands-off additional sales channel.
However, as with anything, there are ways it can go wrong, leaving you with a difficult situation to manage. One of those may seem obscure, but it has happened to others and could to you, and it involves third-party resellers. Amazon fulfillment attracts all kinds of sellers, they work hard to keep things balanced, but there are unscrupulous or underprepared sellers on the system any time. This can lead to situations you may not be expecting, but you need to be aware of as an Amazon seller.
Dealing with below cost competition
With the best service and price, as a manufacturer, you will usually have control of the buy box for your products, and that is great. However, what if another Amazon seller undercuts your price significantly and takes the buy box from you? In that situation, they will be taking your sales, and some may be thinking that is just the danger of offering stock to resellers and someone is prepared to accept lower margins than you. After all, you will be getting wholesale price for the goods anyway as the manufacturer they are buying from.
However, that is not always the case. There are situations where manufacturers who have not sold to a reseller, and in some cases, do not offer wholesale supply at all, finding themselves undercut by another Amazon seller on a product they manufacture. These low prices are often at below cost. In this situation, it is important to take action quickly, but what can you do? You can post on amazon seller central and ask others, but to save time, here is the best approach.
You need a plan
The first thing you need to do is establish just what is going on. If the product is listed under your ASIN, and you know that you have never provided the seller with stock, or the item is being sold below cost, then the best way to learn more is to test buy the product from them.
Once received, then you can begin to see the way to proceed. If the product is indeed a different one being sold under your ASIN, then there is a solid case for Amazon to deal with, putting you in a position of strength for your situation.
For counterfeit goods, as with the result being a different product entirely, your next step must be to contact Amazon and explain your issue. Show proof of the purchase, use photographs or anything else Amazon may request to confirm the situation. This is important, as many have found to their cost, merely complaining about this kind of situation without any evidence results in little more than frustration.
However, even if you resolve such abuse of the ASIN system should it happen to you, there is little to stop it reoccurring. Sellers ending their product into FBA with your ASIN printed on it seems to have practical prevention in place, so what else can you do?
Some sellers who have gone through this process themselves have found that, while there is no way to stop others doing this, if you can catch it happening early, you can prevent many problems. To do that there are several tools on the market which tracks all your ASIN and alerts you every time a new listing is placed on them.
If it turns out it is your product being sold below cost, maybe bought from a reseller liquidation or similar supply route, then you need to think about how to compete. If you can’t beat the price, you can stay ahead on service. The problem is, how can you show customers that difference? The answer to that is your Amazon feedback.
Feedback is the key to standing out
By encouraging feedback from your buyers, you are better able to establish that your product is genuine, and service is second to none. As the manufacturer, you can always offer better support than any reseller, make that part of your brand identity on Amazon and ensure your feedback reflects that. Our feedback tool is excellent for this, helping you to provide tailored feedback emails that can encourage comment on specific areas of the buyer experience.
As an Amazon seller, you face many challenges; being prepared for them can make a difference, and having the best feedback possible can be crucial when things are not going quite right. Feedback should be a priority all the time, not just when things go wrong.