Distribution Compliance may refer, among other things, to the extent to which a company, wholesaler, distributor or retailer adheres to the agreements and regulations related to the online distribution of a given product. Sticking to a high level of distribution compliance is essential for companies to maintain a strong and positive relationship with their distributors and ensure their products reach customers in the desired way!
Monitoring your distribution channels, enforcing policies such as Minimum Advertised Price (MAP) and preventing Gray Market sales is vital to protect your brand's reputation, ensure product quality and increase customer satisfaction!
These are the most common issues that can be addressed using a Distribution compliance solution:
Refers to the unauthorized sale of products through unauthorized sellers, channels or markets, such as fake product listings and reviews, products being sold below a certain price point.
Non-compliant distribution can increase the risk of counterfeit products entering the market, as unauthorized resellers may not be able to guarantee the authenticity of the products they are selling.
Minimum Advertised Price (MAP) policies are intended to protect the brand owner's pricing strategy and maintain the perceived value of the product. Non-compliant distribution can lead to violations of MAP policies, leading to a loss of revenue.
Channel partners who do not adhere to brand standards can lead to a loss of sales for the brand owner since customers may choose to purchase products from other, more trustworthy, sources.
Grey market sellers may advertise, overstock or refunded items as new, or list wrong versions of products, leading customers to accuse the brand owner for poor quality and share negative feedback.
Our distribution compliance solution is designed with advanced features to help you protect your ecommerce from non-compliant partners. Some of the key features of our tool include:
Start addressing issues that can harm your brand’s reputation and negatively impact customer experience. Brands use our Distribution compliance solution to:
We monitor your third-party product sales throughout any search engines, social networks, and digital marketplaces for your peace of mind.
The consequences of non-compliance with distribution policies can include legal action, damage to the brand's reputation, loss of sales, and strained relationships with authorized retailers and distributors. Brands may also lose control over their products and the way they are presented to customers, leading to confusion and negative reviews.
Grey market sellers usually obtain products through authorized or unauthorized channels and then violate distribution agreements or minimum advertised pricing (MAP) agreements by selling the products on major marketplaces such as Amazon. They also conceal their identity behind various names and accounts.
Brands can identify grey market sales by monitoring their distribution channels and pricing policies. They can also track the online sales of their products and look for sellers who violate distribution agreements or minimum advertised pricing (MAP) policies. Additionally, brands can work with third-party monitoring services that specialize in identifying and reporting instances of grey market sales. These services use advanced technology and data analytics to monitor online marketplaces and identify unauthorized sellers.
Grey market sales can harm brands by negatively impacting their reputation and customer trust. Customers who receive products from grey market sellers that are falsely advertised as new or different from what they expected may leave negative reviews and spread poor word-of-mouth. This can lead to lost sales and a damaged brand image.
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