eCommerce continues to grow in the United States. Among the contributing factors are third-party online marketplaces.
There are many statistics that show just how big eCommerce is in this country. For example, U.S. eCommerce sales totaled more than $101 billion in the third quarter of 2016, according to the U.S. Census Bureau. Moreover, Business Insider forecasted that U.S. consumers would spend $385 billion online in 2016. And they estimate that number will rise to $632 billion in 2020.
What might be less clear, for some brands at least, are some of the drawbacks. This includes a loss of control of pricing and potential damage to their brands.
I recently co-authored a white paper on these topics with Trent Dyrsmid, the managing partner at TLK Sourcing. You can download the white paper–“How to Maximize Profits on Today’s Most Popular eCommerce Marketplaces Without Losing Control of Pricing and Damaging Your Brand”–by clicking the above hyperlink.
This white paper discusses each of the following:
- five things companies must address to maximize their profits on online marketplaces;
- optimizing product listings;
- the importance of generating online product reviews;
- improving customer service;
- investing in advertising and promotions;
- the troubles third-party sellers are causing companies; and
- how to regain control of pricing.
While we discuss it in more detail in the white paper, brands can regain control of their products’ pricing on online marketplaces through two steps. First, brands must establish a basis for potential legal claims. Second, companies must have and follow an organized plan to enforce their policies and procedures.
In short, brands must work to maximize the benefits of online marketplaces, while decreasing the risks. This is essential to thriving in the world of eCommerce.