Brand Management: What it is & How it Protects Your Brand

Pattern Marketing

March 2, 2022

It’s easy to throw your product online, forget about it, and go about your business expecting to make big profits on ecommerce in your sleep. Even though the internet has made some incredible things possible—like ordering 1,500 live ladybugs to your doorstep—what it can’t do is tackle your brand management for you; and without brand management, you could be inadvertently causing real financial harm to your company.

What is brand management?

At a high level, brand management (or marketplace management) is a component of marketing that ensures your business is running smoothly and has consistent messaging across all domestic and international channels—this includes your marketing, your advertising, logistics, listings, social media, and more. In ecommerce, brand management includes controlling how other sellers use your brand name and products in the marketplace.

Why does brand management matter?

Brand management (or the lack thereof) directly impacts how customers view your brand and your product, which affects the value of your brand and product, and the price a shopper is willing to pay for your brand’s products. With good management, you can increase the perceived value of your product line and improve your brand equity over time. You can also grow brand awareness and build a tight ship that consumers love and trust.

Brand management protects your brand image

Without brand management, you’re essentially giving unauthorized sellers or even poor authorized sellers permission to say and do whatever they want to your brand image.

Let’s say you’ve got an awesome product in the market and you’ve got a wide variety of partners selling it. You might think your job is done and that these partners can just distribute your product and make money for you without you doing a thing.

Not so fast.

There’s an old adage that when the cat is away, the mice come out to play—and it applies to brand management. Without brand management, sellers are more likely to throw your product listings on Amazon with reckless abandon and without the care your product deserves. They might have an image stack with low quality photos or not enough photos, for example. They might not provide enough details on the listing for a customer to feel confident making a purchase. They might use messaging that’s inconsistent with your own messaging so that buyers don’t trust that they’re getting a genuine product.

Now I’m sure you’re thinking “Not so fast! I picked a good distributor, they would never do this.”

But we would argue (because we’ve seen) that even the best appearing distributors can get a little shady when they need to make a profit. If one distributor goes rogue and lowers the price, the rest of your distributors may lower their prices to compete, which means your price is now lower overall. Or if one distributor decides your product isn’t selling well enough, they may take a few liberties in the title or product description, just to help push your product a little harder.

Unfortunately, all of these things don’t just reflect badly on the seller, they reflect badly on your brand. Because even though the product comes from a third-party seller, the first thing a customer will see on the listing is that it’s your product and your brand. In fact, the unique seller is rarely noticed by marketplace shoppers. It’s a sobering and important note that all of the hard work you put into creating a good reputation can become worthless if you aren’t controlling it across all sellers and all marketplaces.

Brand management protects your profits

Poor brand management, in addition to harming your reputation, can have significant and immediate negative financial impacts. One of the most common ways this can happen is through price erosion.

Price erosion happens when an unauthorized third-party seller gets a hold of your product and undercuts your pricing. This tactic is useful for the authorized seller as they will drive your shoppers to their discounted product, leaving your fully priced product on the shelf. But it leaves your other distributors out to dry as consumers will choose the lower price over the authorized retailer. This strain causes every other seller to lower their own product pricing in order to stay competitive. But this eats into your margins and your sellers’ margins, and these price drops will keep happening over and over again until your sellers run out of inventory.

Not only does this diminish the perceived value and quality of your product to customers, but it harms your relationships with your sellers. If they know that you’re not managing your brand online to prevent situations like this and protect them as sellers, they will have few incentives to continue selling your products in the future.

And you can’t blame them. If sellers can’t make a profit on your products, why should they continue to sell them?

How does brand management work?

Okay, okay, so brand management is important for the reputation and financial health of your brand, but what does it look like and how does it work?

Brand management comes down to having a solid brand strategy, quality partnerships, consistent messaging, and effective brand protection that stops rogue sellers in their tracks.

One way you can manage and protect your brand online is by creating and enforcing a MAP pricing policy to standardize the recommended pricing of your products on Amazon. Effective MAP policies let your sellers know that you’re serious about keeping pricing stable and willing to enforce consequences when sellers underprice. It can weed out the bad players harming your brand and support the partners that want to do business with you the right way.

Another way you can manage your brand better online is to limit your distribution to one or two quality distributors so leaks are less likely to happen. When you focus on a few quality sellers you can trust that your messaging will be consistent across all channels. You want imagery to be high quality and your brand voice to be recognizable, engaging, and true to brand, whether a customer is finding your product on social media, your website, or another seller on Amazon.

Rather than doing all of this work on your own, though, you might consider hiring an outside brand manager to partner with you, tackle the workload, and bring your ecommerce gaols to life.

Your brand manager should have a good sense of what your brand is and what goals you have for the future. A good brand manager will work in partnership with you to enforce your policies and messaging. Ultimately, when looking for a brand manager, you want to find someone you can have a good relationship with who cares just as much for your brand as you do.

The Benefits of brand management with Pattern

Here at Pattern, we offer high quality and strategic brand management for our partners as well as every tool they need to take back control of their ecommerce business from the ground up.

With access to our internal data and tech software, our brand managers work in concert with your ecommerce team and to pinpoint your pain points on ecommerce, enforce your MAP policy, clean up your listing copy and imagery, and provide you with an SEO marketing plan that helps you to capitalize on the right keywords and reach your target audience.

When you partner with Pattern, you receive your own brand manager who helps manage your Pattern team, answers any questions you have, and helps you drive a strategy for success. We’ll make sure your branding and content is consistent across all of your channels and provide stellar customer service to keep your customers coming back.

Ready to learn more about the financial savings and brand protection of a partnership with Pattern? Get in touch today.

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Global Ecommerce: Weekly News (6th September 2022)
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Global Ecommerce Weekly News: 6th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon announces new inventory and distribution service, AWD Amazon has launched Amazon Warehousing and Distribution (AWD), providing inventory and distribution services to its sellers as a means of addressing current supply chain issues. AWD is now available for sellers using Fulfilment by Amazon (FBA), i.e. outsourcing their fulfilment to the platform. Amazon has plans to expand the service outside the platform in 2023. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/02/amazon-introduces-new-service-to-help-solve-supply-chain-challenges/) Amazon Web Services (AWS) launches in the UAE AWS, Amazon’s cloud-computing platform offering, has launched its second region in the Middle East and now provides its services in the UAE. The move will now allow anyone in the UAE who utilises cloud technologies to harness AWS’s advanced platforms and APIs. An estimated $11 billion USD is expected to be added to the UAE’s GDP thanks to the implementation, with an average of 6,000 external vendor jobs to be created annually. AWS is now available in 87 zones across 27 regions, with sights set on expanding further across Australia, Canada, India, Israel, New Zealand, Spain, and Switzerland. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/30/amazon-web-services-launches-region-in-uae/) --- Other Marketplace News --- Lazada to launch in Europe Alibaba-owned ecommerce platform Lazada is set to launch in Europe, marking a refreshed internationalisation push from the company. The move follows toughening economic conditions and performance in Southeast Asia, advancing the need to tap overseas markets. In Europe, Lazada will face tough competition from giants like Amazon and Zalando. Lazada’s exact entry strategy is to be confirmed and will be reliant on macroeconomic and market conditions, according to Lazada CEO James Dong. [Read more on DigitalCommerce360](https://www.digitalcommerce360.com/2022/09/01/alibabas-lazada-to-take-on-amazon-zalando-in-europe-push/) Chinese ecommerce giant Pinduoduo to launch cross-border platform in the United States Pinduoduo, a Chinese ecommerce giant rivalling Alibaba and JD, has announced it will be launching a new cross-border ecommerce platform. The marketplace is set to launch in the United States next month, as part of the company’s larger push into new markets. Pinduoduo found success in China thanks to its rock-bottom price offerings and harnessing of social commerce marketing, emulating strategies similar to fast-fashion giant Shein. [Read more on Yahoo Finance](https://uk.finance.yahoo.com/news/pinduoduo-launch-international-e-commerce-034129263.html) Alibaba launches its biggest B2B sales event, ‘Super September’ China ecommerce giant, Alibaba, has now launched its month-long B2B sales event ‘Super September’. The event provides 40 million buyers and 200,000 suppliers with the ability to connect on the platform, showcasing a ‘virtually unlimited’ number of products. The event hopes to foster new cross-border business relationships to tackle supply chain challenges currently faced by businesses. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/alibaba-launches-super-september-b2b-sales-event/) --- Other Ecommerce News --- Klarna’s losses quadruple in first half of 2022 BNPL provider, Klarna, has reported losses of $581 million USD for the first half of 2022. This figure is almost four times larger than a year earlier, where $129 million USD in losses were reported. The company attributes the losses to employee costs, technology investments, and rising credit losses. Klarna’s figure reporting comes amidst worsening economic conditions, fresh legal and regulatory scrutiny, and pressure from Big Tech competitors. [Read more on The Financial Times](https://www.ft.com/content/483451db-9221-4ca4-83a6-b4ddc6bfcfbb) [Read more on the Guardian](https://www.theguardian.com/business/2022/aug/31/klarna-losses-more-than-triple-as-consumer-spending-slows) One fifth of Snap employees to be laid off amidst poor financial performance Social media platform Snap (‘Snapchat’) has announced it will be laying off 20% of its employees and closing out a number of projects following a year of poor financial results.The move will see 1,200 employees globally lose their jobs, saving the company an estimated $500 million USD in costs. Snap is currently valued at $20 billion, an 84% decrease from its valuation of $130 billion last year. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/snap-to-lay-off-20-of-its-workforce-and-wind-down-a-number-of-projects/)

Global Ecommerce: Weekly News (30th August 2022)
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Global Ecommerce Weekly News: 30th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon set to shut down Amazon Care Amazon is closing its telehealth service, Amazon Care, which launched in 2019 as a trial program for its headquartered employees. Later the service was rolled out nationwide for employees and other companies. The ecommerce giant has now made the decision to move away from the healthcare space, believing it was not the right long-term solution for its enterprise customers. [Read more on CNBC](https://www.cnbc.com/2022/08/24/amazon-is-shutting-down-amazon-care-telehealth-service.html) Peloton closes new deal to sell on Amazon Following a recent deal, Amazon customers will soon be able to buy Peloton fitness equipment on the marketplace, marking Peleton’s first move outside a direct-to-consumer model. According to Peloton’s CCO, there are already around half a million searches on Amazon for Peloton products every month, despite having no presence on the marketplace. Some key products include the original Peloton Bike, retailing for $1,445 and Peloton Guide for $295. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/24/peloton-strikes-deal-to-sell-fitness-equipment-on-amazon/) --- Other Marketplace News --- 60% of Malaysians are buying from local sellers on Shopee A recent survey of nearly 3,500 respondents found that nearly half of the shoppers prefer to purchase from local sellers due to shorter delivery times. Other shoppers decide to shop locally due to the quality of the products made in Malaysia and an interest in keeping the economy running. As a result, smaller local merchants have been able to grow their businesses, and shoppers benefit from shorter delivery times, products of high quality and supporting local businesses. [Read more on The Malaysian Reserve](https://themalaysianreserve.com/2022/08/25/around-60-malaysians-are-buying-from-local-sellers-on-shopee/) Flipkart’s social commerce platform Shopsy crosses 100 million users Flipkart launched a social commerce arm, Shopsy, in July of last year, which has now surpassed 100 million users, ahead of its target timeline being the end of 2022. This acquisition of new users has made Shopsy one of the largest platforms of its kind in the country, and is expected to onboard a further 100 million by the end of 2023. The platform is centred around boosting local entrepreneurship and powering ecommerce for consumers across tier 2+ regions where users face challenges around trust and navigation when shopping online. [Read more on Business Standard](https://www.business-standard.com/article/companies/flipkart-s-social-commerce-platform-shopsy-hits-100-million-users-1220828006851.html) Meta joins Amazon and Walmart in bid for Indian ecommerce market Amazon mentioned earlier in the year that it would be building a logistics division in-house through its purchase of a 51% stake in Ecom Express, an end-to-end logistics firm, to make ecommerce deliveries more efficient in the country. Walmart operates Flipkart in India and is set to continue its investment in the marketplace. In an effort to compete in the Indian ecommerce market, Meta has partnered with Indian ecommerce company, JioMart, to offer customers a grocery shopping platform within its WhatsApp chat feature. [Read more on Pymnts](https://www.pymnts.com/news/retail/2022/meta-joins-amazon-walmart-indian-ecommerce-market/) --- Other Ecommerce News --- Ecommerce in Spain worth €57.7 billion in 2021 Spanish ecommerce saw 11.7% growth compared to last year, largely attributed to cross-border sales. In the final quarter of 2021, ecommerce sales in Spain were at €16.9 billion euros, at least 60% of which came from cross-border sales. Transactions from foreign locations to Spain generated a turnover of €1.56 billion in Q4, a growth of 27.7% compared to Q4 a year before. [Read more on Ecommerce News](https://ecommercenews.eu/ecommerce-in-spain-was-worth-e57-7-billion-in-2021/)

Global Ecommerce: Weekly News (23rd August 2022)
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Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)