The challenging relationship between brand and retailers
The relationship between the brand and the retailer has changed a lot in these years. Thanks to the Internet the online shopping has had a massive increase and countless are the online retailers. Today it's easy to find a very good deal on Internet with prices far below the brand's ones. In these terms, for the brand is very important get to know at wich price retailers are selling the items online.
If some years ago this process could've been done manually, today this is not possible. Controlling each single retailer is too much, both from the costs and time point of view.
Internet did change a lot the idea that we used to have of the traditional business, transforming it in something more enjoyable and at the same time easier and comfier. While the online retailers are growing, we can see a correlated growth of competition and the range of products that can be found on the Internet.
However, the ecommerce is a kind of business where everyone is able to sell everything, and this system makes brands struggling in controlling all the retailers. It's well known that get to know that a specific item is sold with the 70% off price is an issue. Indeed it damages the brand's image.
Just to give an example we can take in consideration Amazon, wich is not interested in respecting the pricing rules given by the brand, but only to get more and more income. The same happen for some retailers, that in order to increase the income, they are willing to apply a very low price to the item.
This is basically why a tracking tool is important. Using a tool such as Competitoor you can either have a better idea of the price applied to your products and the distribution in the online business. Hereafter are listed some benefits linked to this kind of solution:
1. Get to know all your retailers
Thanks to a tracking tool, we are able to know every single online retailer. It often happens that we think to have a clear idea of wich are our retailers, but the truth is that Internet let them increase a lot. So, thinking to keep them all under your control is not as easy as you may think, especially when you discover new retailers wich you didn't think to have before.
Thanks Competitoor you are also able to know those retailers that actually are not authorised in selling your items. It often happens that those unauthorised retailers are proposing the item at a price that can affect the quality of the brand.
2. Check that your pricing policies are followed
Usually brands indicate some pricing rules that retailers should follow, but it doesn't always go this way. Lots of retailers propose a price far below the minimum price allowed by the brand, sacrificing the profit.
For this reason it's very important get to know in real time when our product is sold with a price that damage our brand's image and perception of quality. In these terms Competitoor allows you to name a specific threshold under wich you will be immediately informed if a retailer overcomes it.
3. War price
War price are usually rising when retailers are not following the pricing policies given by the brand. Making retailers following the rules is for sure very important, especially because the brand could be perceived as lacking of professionality and responsability.
If a retailer sees that a competitor applies to the same item a lower price, it will start wandering why the brand is allowing such behaviour. As a consequence, the rest of retailers will start lowering their prices as well, generating a situation that the brand will struggle adjusting.
4. Discover unauthorized retailers
Thanks to a trucking tool you are able to discover also those retailers that are not actually authorized in selling your product. As a consequence you will probably discover counterfeit products as well.
5. Brand's quality in first place
As a brand you might want that your products are perceived with hight quality. But this is not a simple thing to do and the quality can be destroied very fast when a retailer is selling our product with 70% off without our permission.
For this reason you might always want to protect your brand's quality. In order to do so, it's important to step in real time in a situation that does not fits you at all.
6. Get a better relationship with retailers
Thanks to the interview with Tucano Urbano, we had a better understanding of this 6th topic. Showing to the retailers that you care about your products means that you take your business seriously and retailers have the chance to strengthen the relationship with you.
The online business represents an amazing chance for those brands and retailers that want to increase the income, and in order to do so the first step to take is building a good relationship with your retailers.
The online business is constantly increasing and knowing in real time how our retailers work is getting more and more important. Thanks to the Internet the idea we used to have of the traditional business is nowadays far away, for this reason is important to protect what we built throught years. The value and the quality that costumers perceive are two of the main features that are able to convert the visit in purchase. The price is among the most important as well, and so it is the tracking system.