Why a Wide Strategy Doesn’t Win on Amazon

Katie Lavin

June 7, 2022

 2 minute read time
Why a Wide Strategy Doesn’t Win on Amazon

A typical retail strategy is to go wide–get your product in as many locations as possible and leverage wholesale, big box, distributors, specialty stores, and more. But did you know your winning retail strategy may not work on Amazon?

Following a wide retail strategy on marketplaces means there will be tons of sellers at a price below what you want. So you think, “Well how did so much product and so many sellers get on Amazon anyhow?” With offline seller competition heating up, the brick and mortar retail channels simply want to move product so they become “leaky” and start to offload inventory on online marketplaces like Amazon.

Pattern is the world’s top ecommerce accelerator that helps brands create and execute a narrow distribution strategy on Amazon to regain control of all channels and grow profitability.

How Narrow Distribution Drives Amazon Success

1. Price Control

Overall, narrow distribution allows for price control. By creating a narrow distribution strategy on Amazon and other marketplaces, you create and monitor adherence to a pricing strategy. A pricing strategy defines how sellers can price, who they can sell to, and how they can deal with extra inventory. It also sets up and allows a brand to enforce MAP Policies.

2. Seller Control

It also creates seller control. Price erosion starts with wide distribution and a high number of online sellers. So, the first step in stopping price erosion is narrowing your distribution and controlling the number of sellers who list your product online and on marketplaces like Amazon, Walmart, Target, etc. By removing unauthorized sellers you will stay out of the Death Spiral.

Pattern’s proprietary software and technologies can help you narrow your seller list in a more manageable and faster way. With a partner eControl law firm, our process of identifying unauthorized sellers, issuing takedowns, and enforcing MAP policies, gives you back brand control more efficiently than you can do alone.

3. Brand Value Control

By limiting the number of sellers, you also regain control of your brand image on marketplaces. Which includes product and brand photos, copy, video, SEO, advertising, reviews, and more. Using only brand-approved assets, all created in the same vision and aligned on message, re-establishes control over the customer experience, which will hold value over time and maintain brand loyalty.

Take Control to Win on Amazon

In a narrow distribution model, you control your pricing, sellers, and brand value online and beyond. Together with Pattern’s expertise and technology, you can strategize and execute a narrow distribution model on Amazon so you will be able to take back control on Amazon and accelerate your profitability.

Win with Pattern–contact us today.

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