65: How Amazon 3P Sellers are Disrupting Specialty Retailers & Brands, Part 1

“If you’re still wondering how Amazon sellers could possibly effect the health of your specialty outdoor business, this episode is a must listen.”

EPISODE PREVIEW:

 Today’s show is the first in a two-part series on the Channel Mastery podcast, presented by Verde Brand Communications, where we explore the impact Amazon third-party (3P) sellers have on the business of outdoor specialty retailers and brands. Thank you to Snewsnet.com, the sponsor of this special two-part series of the Channel Mastery podcast.

Rich Hill, president of the Grassroots Outdoor Alliance, called out anonymous 3P sellers on marketplaces – especially Amazon – as the single-biggest threat to the health of the specialty outdoor industry ecosystem in 2019. Specialty brands and retailers invest a lot of time and money creating a specialty experience to keep the end consumer engaged across multiple channels. Anonymous third-party sellers are eroding the specialty brand experience and the trust of that consumer. They acquire premium branded products through various means and then resell it on marketplaces like Amazon at discounted prices, without offering the customer care or warranty authorized resellers and retailers uphold for brands.

The damage is coming from the channel conflict and disruption of the consumer decision journey. More often than not today, a consumer’s online research journey begins and ends on Amazon; over half of all product searches begin on Amazon today, and nearly half of all ecommerce sales happen on Amazon today. The final consumer experience on Amazon funnels down to the buy box, where hundreds of 3P sellers are competing to sell premium outdoor brands at discounted prices.

Anonymous 3P sellers are notoriously tough to track down, and the problem is growing exponentially. There are over 3,500 new anonymous 3P sellers added to the Amazon platform every single day. Amazon adds more new sellers in one week, than Walmart.com has in its entirety.

If you’re still wondering how Amazon sellers could possibly effect the health of your specialty outdoor business, this episode is a must listen.

GUEST PROFILES:

DAVID HOWELL

Managing director of Howell & Associates. David specializes in brand protection in today’s multi-channel marketplace. His firm devises and executes strategies that protect global brands and intellectual property from infringements and violations. He counts many outdoor brands as clients and has a booming business due to the myriad of 3P selling challenges being faced by brands on marketplaces like Amazon.

TERRY LEE

Founder and CEO of the nine-year-old specialty retailer Gear Coop, located in Costa Mesa, Calif. Terry’s company also has a digital storefront and has operated as an authorized third-party seller for its entire existence. Gear Coop is also a member of the Grassroots Outdoor Alliance. Gear Coop serves as an authorized Amazon 3P seller for many major brands in the outdoor marketplace, including The North Face, ArcTeryx and Petzl, just to name three. Terry and his team are committed to upholding MAP on all channels, especially Amazon, to keep the outdoor specialty sales channel clean for consumers. He shares a range of critical insights in this interview on the challenges presented with price parity to retailers and brands across channels.

We hope you enjoy today’s installment of the Channel Mastery podcast, sponsored by Snewsnet.com. Today’s episode is the first in a two-part series of the Channel Mastery podcast. Next week’s episode drops on November 27, and features Jon Rockefeller, Managing Director of the Sport business of Petzl America, who shares the brand point of view on this topic. You’ll also hear from Fred Dimyan, CEO of Potoosolutions.com, a fast-growing firm that specializes in protecting brands on online marketplaces.

Have questions or ideas for Kristin and the Channel Mastery podcast? Email: podcast@channelmastery.com

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