By Martin Heubel, Amazon Strategy Consultant at Consulterce
It’s the product with the best distribution strategy.
I see this all the time: Large CPG brands that spend months designing the right price pack architecture. On paper, the product should be a winner:
- Great price point
- Efficient packaging
- Attractive pack-size
The problem is:
The Amazon Buy Box shows 20+ resellers.
At this point, you might as well delist the product.
The problem here isn’t the price pack architecture. The problem is the lack of distribution control.
Outdated incentive structures enable wholesalers and distributors to resell your products. Passing on any discounts to consumers. Amazon promotes this behaviour. After all, the lowest price often wins the sale.
This results in losing the 1P Buy Box, order terminations and calls for margin support by Vendor Managers. Hindering the profitable development of the account.
So instead of just designing new products, ensure your teams update their sales policies and develop an exclusive assortment through a selective distribution.
Otherwise, you’re spinning everyone else’s Flywheel but not yours.
For further information and support, contact Martin Heubel here
