2021 saw a tremendous rise in “Amazon Aggregators” - investment companies that acquire, in many cases, smaller “mom and pop” businesses on Amazon for the purpose of consolidating them with other larger sellers. These sellers become eCommerce juggernauts that can scale revenues through creating efficiencies in supply chains and marketing efforts. There are now over 80 active Aggregators and the sector has seen a significant capital influx, more than US $10 billion has been raised by Aggregators since April 2020. With that amount of investment happening in the sector, Aggregators should move quickly to protect their new brands from counterfeit exploitation. Unauthorized sellers and counterfeit products will rapidly dilute their investment and prohibit sales growth.
Aggregators shouldn’t wait for their investments to reach massive scale before implementing technologies targeted to reduce fraud and counterfeit sales on Amazon. Quite the opposite, well-funded Aggregators should be performing upfront analysis (as part of their due diligence process when evaluating brands to acquire) of the impact and exposure that unauthorized sellers are having on their potential acquisition target.
To combat unauthorized sales, Aggregators should use analytics and attain a deep understanding of the size and scope of the brand’s unauthorized sales problem on Amazon, and more importantly, already have tools and infrastructure to shrink and contain the problem. After all, the value of your investment is at stake. Aggregators should consider anti-counterfeiting and channel management needs before making an acquisition, not after.
IPSecure brings together deep Buy Box analytics, IP & reseller enforcement to protect your investment while growing sales on Amazon. Get started for free today at app.ipsecure.com/signup.
Amazon brand protection technologies and processes Aggregators should consider:
Unique ASIN Focus. Focus on Amazon high-performing ASIN product listings, not manually searching by keywords. Most anti-counterfeiting tools and technologies help brand owners scan for product keywords to identify infringements but the most effective tools for Aggregators are those built with an understanding of Amazon’s unique marketplace in mind. For example, Amazon’s complex web of selling models means that product listings number in the millions, each featuring a unique product (ASIN). Scanning for product images or keywords will not be as effective as scanning for product ASINs across multiple sellers. Aggregators should use a technology that can scan for all their product ASINs to detect infringing sellers.
Focus on seller Buy Box win rates and inventory data. With 3,000 to 4,000 new sellers joining daily, Amazon is a sea of ‘potential’ unauthorized sellers. Target those that not only meet your abuse guidelines for IP infringement or reseller agreement noncompliance, but also the amount of sales and revenue they are siphoning away from you. If unauthorized sellers are frequently winning the “Buy Box,” then counterfeiters and unauthorized sellers are leveraging the brand to steal customers. Enforcement actions should be aimed at these sellers first and foremost because “Buy Box” winners are the individuals most successful at selling counterfeits to consumers, and removing them both protects IP and will boost sales.
Customized Reporting. If an Aggregator has hundreds or thousands of products and many brands under management, they will likely need detailed reporting by product name, ASIN, seller name, etc. Brand protection tools that allow for customized reporting of detection and enforcement on Amazon will help Aggregators understand how effectively they are protecting their investment on Amazon’s platform. The IPSecure platform in particular does an excellent job both identifying unauthorized sellers based on revenue impact, but more importantly, helping you recapture that revenue for you and your partners.
In addition to the features and functionality described above, and at the risk of stating the obvious, Aggregators should enroll in Amazon’s brand protection programs to ensure they can make expeditious complaints when unauthorized or infringing sellers are detected. Amazon has three brand protection programs:
- Amazon Brand Registry Program – Program will actively help detect counterfeits. Also, Amazon has a feature where you can flag products that you discover to be a counterfeit of your own.
- Amazon Transparency Program – Program will apply a unique QR code for each sale. This lets an aggregator follow the transaction and product as it moves through the Amazon distribution warehouse.
- Amazon Project Zero - Program uses machine learning to figure out the newest ways and tactics counterfeit sellers are using.
IPSecure expects to see more Aggregators enter the marketplace in 2022, consolidating more brands and products into their respective portfolios. This, in turn, will create more targets for counterfeit enterprises. To effectively combat these bad actors, Aggregators should be armed with the best tools and technologies, designed specifically to manage detections and enforcements on Amazon.
For more information, or to start protecting your brand on Amazon in minutes, visit ipsecure.com and sign up today!