The eCommerce marketplaces have become hotspots for brands to ensure they capture the maximum market share through their omnichannel approach. To execute this, brands have two options, sell online directly or appoint authorized sellers. Unfortunately, there is one more category of sellers that are unauthorized or third-party (3P) sellers and they tap into the same eCommerce marketplaces and drive away the potential customer base towards their listings.
The issue with third party sellers is that you can’t control them for the activities they are performing on the platform. To start with, they don't necessarily provide genuine products of the brand. In fact, they continuously find ways to increase their financial base by enlisting counterfeit listings actively. Although the bigger issue with such sellers is that they continuously engage in Minimum Advertised Price (MAP) violations, which lead to many repercussions to brands, including damaged brand reputation, loss of genuine/authorized sellers, etc.
The biggest disadvantage of MAP violations through unauthorized sellers is that it destroys the price parity of the brand and creates consumer distrust in the brand. Moreover, loyal consumers may ignore the brand's product listings, opt for alternatives, or go to another store to find better products.
When consumer's product demand from authorized sellers is diverted on eCommerce marketplaces by 3P sellers, the demand and supply relationship between the brand and its sellers is also affected. This unexpected change in demand and supply often leads to overstocking, which is more dangerous in case of perishable products.
Third party sellers also take the maximum benefit when brands run out of stock, and they scale their sales creating more damaging situation for brands. While these might seem concerning to you as a brand, the story doesn't stop here.
3P sellers also engage in copyright and brand infringement by using images, content, or videos of genuine products to sell their counterfeits without the brand's permission. The eCommerce marketplaces, like Amazon, Flipkart, Shopee, Lazada, etc., have also been flooded with sellers of lookalike products.
What Should Brands Do to Monitor their eCom Platform Sellers?
Monitoring sellers across eCommerce platforms to flag unauthorized sellers is challenging. To cater to this major issue of eCommerce players, we help them with our eCommerce Competitive Analytics solutions, mScanIt, to review seller activities in real-time.
mScanIt has capabilities to perform Seller Analysis that reveals the stock availability of products across eCommerce platforms. Brands can use the list of sellers on each platform, the type of products they are selling, the stock availability of sellers, and more. Also, the solution can help brands in identifying which seller is winning the buy box. By reviewing these details in real-time, brands can detect unknown sellers and check out their activities on different eCommerce platforms.
Simultaneously, a brand can view and compare the product availability of 3P seller's vis-a-vis authorized sellers within a time frame. If the percentage of product available with authorized sellers is lower than the 3P sellers, consumers could opt for products from alternate sellers or even visit alternate stores. The scenario is persistently noticed in the FMCG industry, as grocery is an everyday need of consumers and is one of the categories with the highest demands since the launch of Quick Commerce (Q-Com) brands and apps.
Brands can leverage mScanIt to inform their Key Account Managers or Category Managers to report 3P or unauthorized sellers. Doing so would diminish the chance of MAP violations and effectively maintain the product price of different variants under multiple categories. Moreover, brands can know the exact sellers of their products functioning on eCommerce platforms. It would likely avoid copyright, trademark, and content infringement.
Seller analysis is an important facet of E-Commerce Competitive Analytics. Brands need to analyze the activity of their sellers to check their stocking needs. Simultaneously, they need to know the sellers active across E-Commerce platforms like Amazon, Blinkit, Flipkart, and others.
The seller analysis is also important for eliminating counterfeit, unauthorized, or 3P sellers from the eCommerce platforms, directly impacting the trust between a brand and its consumers.
Schedule a demo with us to learn about the advantages of the eCommerce Competitive Analytics solution for your brand.