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.
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