A well-known specialty pet supply brand was facing pricing issues.

The Brand's Predicament on Amazon

A well-known specialty pet supply brand was facing pricing issues. After establishing a relationship with Amazon in 2017 to open a new, growing sales channel, problems associated with their arrangement escalated directly alongside Amazon’s traffic skyrocketing.

While Amazon presented itself as a promising channel for the brand, they were experiencing price erosion, profit loss, and damaged relationships with other retailers due to a lack of control and optimization of prices and listings on Amazon.

With over $75 Million in total sales and their Amazon channel increasing to $4.5 Million, the brand needed to avoid future profit losses and further damage to its brand reputation in the retail market.

AMZ Atlas helped the brand to accelerate eCommerce, take back pricing control, create greater value on Amazon, and repair relationships with other retailers with a one-of-a-kind Amazon strategy. Read on to learn how this was accomplished.

How it All Started: Product Prices Were Eroding on Amazon – And Along With it Their Faith in Amazon as a Profitable Sale Channel
Other retailers were demanding answers. The brand’s low-price pet product growth on Amazon was undermining their pricing on other channels and pressuring them to lower across their product portfolio metrics. The brand not only needed to regain control of its listings but also reclaim its pricing power.

1 – Missing the MAP
Pricing had dropped from 20% to 33% below the minimum advertised price (MAP) on Amazon.
Their own listings were competing with multiple unauthorized third-party resellers that were breaking MAP. The brand needed a plan to take control of unauthorized third-party sellers and enforce their MAP so they could regain pricing power.

2 – Downward Pricing Pressure Removed Pricing Power
The unauthorized sellers had created downward pricing pressure for the brand on Amazon. These lower-priced listings were undermining their true pricing and causing price pressure across their product portfolio.

3 – The Brand’s Reputation at Risk with Consumers and Retailers
Due to the mix of unauthorized product listings, the brand’s products were represented in a myriad of ways by different sellers at prices below MAP challenged their relationships with The Big Three retailers. The brand needed to regain control of its brand presence on Amazon to strengthen its relationship with other retailers and grow eCommerce sales off and on Amazon.

4 – Declining Revenue
Revenue was suffering despite rapidly growing Amazon eCommerce sales volume. The downward pricing pressure had shrunk their margins.

With prices being pushed lower and lower, volume increased considerably, putting the brand in a riskier financial position.