Brand Piracy on Amazon: 5 Reasons to Stop it NOW!

admin_fortress | Feb 09, 2021

Published in Market Trends

For a high growth beauty brand there’s only one thing worse than not being on Amazon…

And that’s being on Amazon and not owning your brand’s presence.

Brand piracy is alive and well on the Amazon marketplace and the longer a beauty brand waits to take control of their brand presence the more likely it becomes that their brand, price point and reviews will be established by unauthorized resellers trying to make a quick dollar.

There are many reasons beauty brands need to accelerate their Amazon presence and strategy and in this blog we want to share a few of the most impactful ones.

Reason 1 – Unauthorized resellers PIRATING your beauty band

Many of our new beauty clients are shocked at the number of resellers actively marketing and selling their products on Amazon. Unbeknownst to them, the damage that can come from simply allowing these brand pirates—unauthorized resellers—to exist on the platform can be alarming, resulting in missed sales opportunities to erratic branding.

Unauthorized resellers are like termites, often you don’t even know they are there, but that doesn’t mean they’re not doing damage and eating away at the online fabric of your brand. They damage and destroy the foundation of your brand, causing problems like price diversion, counterfeit products and inconsistent branding, all leading to the number one Amazon killer – bad reviews.

By being a verified Amazon seller you can control your branding, and take advantage of the market through a well-executed Amazon strategy – getting ahead of brand pirates.

Reason 2 – The ONLY way to avoid bad reviews is to create great reviews

Bad reviews are damaging to a brand for so many reasons, but we would argue that they are 100x more damaging when published on Amazon.

The reason for this is the way beauty shoppers use reviews when exploring brands and making purchases within the Amazon marketplace.

Accordingly to Sabanoglu, almost 4 out of 5 beauty shoppers on Amazon are actively reading and using reviews to form their opinions of beauty brands and make purchasing decisions.

And – what’s worse – is that once a bad review has been published on Amazon, it’s impossible to get rid of – even if it is for a grey market version of your product.

The longer a beauty brand waits to enter the Amazon marketplace, the more likely a brand pirate will fill the space selling your products and create bad review scenarios..

Smarter beauty brands are taking full control of their Amazon presence to build a stronger brand through positive reviews.

Reason 3 – Your non-Amazon purchasers are probably READING your Amazon reviews

Just because your customers are purchasing your beauty products outside of Amazon, doesn’t mean they’re not exposed to reviews and pricing for your product inside the marketplace.

With almost 2 out of 3 people considering online product purchases, using Amazon as their primary search tool, many of your customers are likely to be exposed to your brand on Amazon—whether it’s really you on there or not.

And even if they don’t find your brand on Amazon, the lack of presence is often considered a negative, with a majority of purchasers considering Amazon to be the most trusted online source of information and products.

It’s also a negative because your lack of presence is an open doorway to the positive reviews on your competitor’s product line—their good reviews are your negatives.

This is yet another reason you can’t afford to delay your Amazon strategy.

Reason 4 – Beauty buyers WANT fast and easy

Despite huge improvements in online conversion optimization, slippage at the checkout phase remains a major issue for most online sales retailers looking to optimize the customer journey.

Amazon is a world-leader in turning interest into purchase with one-click purchasing, free shipping, and arguably the most sophisticated and optimized retargeting tools available anywhere.

The existing financial relationship Amazon has in place with nearly everyone viewing your beauty products makes it significantly easier for the customer to purchase products.

Their ability to ship to a wider range of locations faster and cheaper than any other competitor in the market also improves conversion rates with 46% of beauty and hair care Amazon customers motivated to purchase by faster shipping and 45% converting primarily due to free shipping.

Bottom line is, beauty consumers want fast and easy and the global leader in both is the Amazon marketplace.

Reason 5 – You won’t BEAT Amazon, so it makes sense to join Amazon

For many beauty brands, partnering with an online goliath like Amazon may seem like a risky step for your brand and your business.

We understand many of the concerns you may have because our clients generally had very similar concerns before we started working with them to own and optimize their Amazon presence.

But, we confidently believe any concerns you may have in activating this channel are far outweighed by having complete control of your brand and purchasing experience on Amazon.

As of Q3 in 2020, there were 126 million Amazon Prime members in the US alone and for many beauty brands this represents more than 80% of the consumers they would consider to be inside their core target market.

The effective and strategic use of tools like branded storefronts, SEO and PPC within the Amazon marketplace can radically improve your exposure to these members whether they’re searching for your brand or just considering the category and ingredients you use to create your beauty products.

Bottom line is, Amazon is the world’s largest and most trusted marketplace that certainly isn’t going anywhere anytime soon. If you can’t beat them, join them!

Our role is to help you make the most of the Amazon marketplace opportunity and I hope this blog has motivated you to accelerate your Amazon strategy and pay it the attention it deserves.

We’re here to help if you’re looking for a partner that can add value to every level of your strategy and ensure your success. For more information on this please email us at [email protected]