Defining The Problem
The dynamics of marketplace sales channels like Amazon, eBay, Walmart, and others, will constantly put pressure on the value of products and ultimately the value of Brands.
The Dealers that a Brand originally set up to service a specific local market are no longer competing with the account across town, they are now competing with accounts and sellers across the country.
This increased competition and Seller anonymity drive price pressure on those products, especially when service levels between sellers is consistent and the only differentiation is price. This price pressure can be catastrophic for Brands long term.
This issue if left unchecked deteriorates Brand Equity. A decreased Brand Equity leads to a higher likelihood for your customers to accept an alternative including private label offerings costing your Brand valuable market share and profitability.
The issue centers around customers who cannot be trusted to follow brand distribution agreements, either by sending product to their friends or jobbers, or by setting up their own 3p store. Occasionally international sales outlets violate transshipping policies and sometimes a Brands own retail sales outlets discount products enough to create unauthorized 3P Sellers.
No matter what category an unauthorized seller falls, our system is designed to provide that data to the brands so they can confidently hold Domestic and International wholesale partners accountable to their distribution agreements or consider adjustments to own retail assortment and sales policies.
Our team has worked with hundreds of CPG brands over the years and all of them have arrived at this point, to varying degrees.
Counter Diversion was specifically created to help all our clients get this nailed down.
The Counter Diversion solution 'marries up' the information from the 3rd party SaaS MAP/monitoring company with the brands’ shipping records, then we can manage the disruptive listings and isolate the problems quickly and in volume.
The Counter Diversion algorithm analyzes thousands of data points to deliver
•+ Much More
•For all Tracked Sellers in seconds
This guidance gives brands the information and confidence to confront customers regarding sales strategies and understand gaps in policies that are disruptive, destructive and negatively impact Brand Equity.