Companies face the challenge of identifying non-authorized distributors who sell their products without authorization. Non-authorized distributors can not only damage a company's reputation, but also affect the sale of original products.
In our latest case study, we highlight the challenges and consequences faced by manufacturers in the context of e-commerce and present an innovative solution to regulate the distribution of their own products.
Why the identification of non-authorized traders is important
Damage to brand image: Non-authorized dealers often do not have access to the original products and instead sell counterfeit or low-quality goods. These inferior products can lead to customer complaints and significantly damage the brand image.
Lost sales: If non-authorized dealers sell original products at lower prices, this may result in lost sales for the company and authorized dealers. Customers may be enticed to buy the lower-priced products without realizing that they are unauthorized goods.
Measures against non-authorized retailers
Cease-and-desist letter and legal action: Once non-authorized distributors are identified, companies should issue them with a cease-and-desist letter to stop selling their products. If this is not effective, legal action can be taken to stop the sale of non-authorized goods.
Communication with online marketplaces: Companies should also communicate with the relevant online marketplaces and demonstrate that they are the authorized sellers of their products. The marketplaces can then remove non-authorized sellers from their platforms.
Advantages of combating non-authorized retailers
Strengthening brand trust: By combating non-authorized dealers, companies can strengthen consumer trust in their brand. Customers know that when they buy from authorized merchants, they are getting high-quality, genuine products.
Increase sales for authorized merchants: Removing non-authorized merchants from online marketplaces can increase sales for authorized merchants. Customers are more likely to buy from legitimate sellers, resulting in a more equitable distribution of sales.
Our case study on the successful use of oraya insights to identify non-authorized traders
Identifying and combating non-authorized retailers are critical steps companies must take to protect their brand image and increase sales. In our recent case study, we outline how we contributed to the objective of our client, a manufacturer in the perfume and cosmetics industry, by using oraya insights as an automated market intelligence technology. Using the comprehensive approach of our collaboration, we helped the client achieve the following results:
- -33% share of non-authorized retailers reduced in 6 months.
- Clear visibility of authorized and non-authorized distributors
- Continued market monitoring across relevant channels with minimal manual effort.
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