Channel Control
Case Study

Context

A dietary supplement brand had been victim to numerous unauthorized third-party sellers (3Ps). These 3Ps had acquired product in various ways: liquidation auctions, huge sales at brick & mortar, distributors, and in more serious cases, by stealing it.

The negative effects the brand and its customers encountered included: 

  • Unauthorized repackaging of product  
  • Price dilution (going below MAP) 
  • Brand-image dilution (i.e. manipulation of product images, copy, etc.) 
  • Poor customer service  
  • Poor product quality control
  • Loss of warranty and/or guarantees  

Tactics

We implemented the Vendo 6-Step Channel Control Strategy. The 2 most powerful steps being: 

1. Vendo Enforcement Email Sequence (Months 1-2)

  • Unmasked 3P’s to learn their direct contact information (name, phone number, email, address, aliases, etc.).   
  • Communicated with them to tell them they must remove their offers from the product listings, or they will be reported to Amazon and/or legal counsel. 
  • For the 3Ps that did not comply, and the 3Ps for which we did not have emails, we sent cease & desists. 

 

2. Vendo Complaint Submission Strategy (Months 2-3)

  • Dived deep into a 3P’s selling practices on Amazon, finding where they’re violating Amazon’s policies.
  • Constructed an argument.
  • Reported the 3P’s to the various Amazon departments, asking for their offers to be removed. 
0

90%

of ALL 3P's
Removed within
3 months

0

91%

of 3P's Removed
with Enforcement
Email Strategy

0

80%

of 3P's Removed
with Complaint
Submission Strategy

0

100%+

YoY
Sales Increase

Conclusion

Elimination of 90% of 3P’s within 3 months (Channel Control is an ongoing job!)

  • With the Vendo Enforcement Email Sequence, we saw a 91% effectiveness rate in getting 3Ps to comply and ultimately remove their offers on Amazon. 
  • With the Vendo Complaint Submission Strategy, we saw an 80% effectiveness rate in getting the 3P’s removed. 

Sales increased over 100% YoY

Brand has a clear, consistent, and controlled brand image on Amazon

Price integrity (MAP protection), brand copy, brand imagery, quality control of the products – and more – are now controlled.

Off-Amazon Benefits

Walmart agreed to take on their products for the upcoming season after seeing the level of control on Amazon.