Why You Should Protect Your Brand on Amazon in the UAE

The Middle East ecommerce market has grown fast and the pandemic has only accelerated Western brands wanting to sell online there, particularly on Amazon.ae. However, it's crucial to ensure that your brand is properly represented for the benefit of your sales through all channels, so you should ensure you protect your brand on Amazon in the UAE. The region now has one of the highest ecommerce growth opportunities, and it is predicted that [retail ecommerce across Middle East & Africa will grow by 20% in the next five years](https://www.retail-week.com/retail-voice/why-the-middle-east-should-be-next-on-your-list-for-online-growth/7035836.article?authent=1), compared to a global growth of 13%. Western brands will want to capitalise on this, but should not underestimate the impact of grey market activity, unauthorised sellers and fake product; all of which can make it harder for them to maximise sales Below, we highlight some of the reasons and benefits as to why now is the time to protect your brand on Amazon in the UAE. ## Protect your brand from unauthorised sellers In our recent benchmark analysis of 50 brands being sold on Amazon in the Middle East, we found 74% of them had more than one reseller on their listings. The [category with the most competition was Electronics](https://info.pattern.com/amazon-uae-electronics-report-2021?region=MENA) where 47% of listings had more than six sellers. Whilst competition can be a good thing, offering customers more choice on who to purchase from, in reality, a high number of sellers on a product is a sign of a messy seller landscape which can have a negative impact on customers and the brand. Although Amazon may not be a brand's first choice as a sales channel, you can be sure that if you are not selling your brand directly on the marketplace, it’s highly likely it’s being sold by another seller that is potentially damaging your brand reputation and perception. Typically, these types of sellers’ main business strategy is driven by quick revenue rather than investing in quality control, marketing, and brand experience. As a result, customers are often left unsatisfied with the quality of their products, often questioning the authenticity or items, and consequently, generating bad reviews and ratings for the brand. A category where we noticed this to be a significant issue was [Beauty](https://info.pattern.com/amazon-uae-beauty-report-2021?region=MENA), where most of the brands reviewed experienced a high volume of negative reviews. In comparison to other categories, brands in the beauty category also had a lot more customer questions on their listings; mainly questioning the legitimacy of the products. However, none of the brands replied directly. This is a missed opportunity to generate sales, build trust and protect your brand from other customers or sellers providing inaccurate responses. For brands that may be sceptical about scaling up their business on Amazon.ae, the benefit of working with an authorised third-party seller such as Pattern, is that you can build your legitimate presence and diminish the impact of unauthorised sellers.  This will help significantly improve reviews and ratings, as well as drive revenue on sales channels outside of Amazon. ## A high percentage of cross-border sales in the UAE In 2020, [86% of consumers made purchases from outside of the region](https://www.linkedin.com/pulse/selling-cross-border-middle-east-what-strategies-work-al-shami-/), partly due to high local pricing, and partly because consumers are actively seeking out brands and products that are not yet sold locally. Vitamins and Supplements is one category with strong cross-border sales. It also scored relatively poorly in the benchmarking, partly due to a competitive seller landscape of unauthorised sellers and a low percentage of product listings that had a rating of 4* and above. Product that has been stored incorrectly and slow delivery are two problems that can impact the customer experience and perception of your brand, even if it is a third-party supplying your product. ## Amazon Advertising can help increase your awareness Brands will also benefit from investing in Amazon Advertising to increase their presence in the market and compete against their peers within the category, especially since competition for Sponsored Brand and Sponsored Product Ads are low. When we analysed the use of Sponsored Advertising for the [10 Vitamins & Supplements brands selling on Amazon.ae](https://info.pattern.com/amazon-uae-vitamins-supplements-report-2021?region=MENA), we found none were utilising this ad type – this is a great opportunity to advertise your legitimate listings at relatively low costs if you aren't already doing so. To sum it up, being able to protect your brand on Amazon in the UAE means more than making direct sales. What's equally, if not more, important is the impact on Middle Eastern consumers' perception of your brand in general. Having the right strategy will grow your sales while ensuring your brand is protected. [Download the Amazon UAE benchmarking report](https://info.pattern.com/amazon-uae-report-2021?region=MENA) where we share best practise examples that effect more than just your presence on Amazon or to learn more about how Pattern can help you grow your business on Amazon, contact MENA@pattern.com.

Akta Bavalia

October 27, 2021

The Middle East ecommerce market has grown fast and the pandemic has only accelerated Western brands wanting to sell online there, particularly on Amazon.ae. However, it's crucial to ensure that your brand is properly represented for the benefit of your sales through all channels, so you should ensure you protect your brand on Amazon in the UAE.

The region now has one the highest ecommerce growth opportunities, and it is predicted that retail ecommerce across Middle East & Africa will grow by 20% in the next five years, compared to a global growth of 13%. Western brands will want to capitalise on this, but should not underestimate the impact of grey market activity, unauthorised sellers and fake product; all of which can make it harder for them to maximise sales

Below, we highlight some of the reasons and benefits as to why now is the time to protect your brand on Amazon in the UAE.

Protect your brand from unauthorised sellers

In our recent benchmark analysis of 50 brands being sold on Amazon in the Middle East, we found 74% of them had more than one reseller on their listings. The category with the most competition was Electronics where 47% of listings had more than six sellers. Whilst competition can be a good thing, offering customers more choice on who to purchase from, in reality, a high number of sellers on a product is a sign of a messy seller landscape which can have a negative impact on customers and the brand.

Although Amazon may not be a brand's first choice as a sales channel, you can be sure that if you are not selling your brand directly on the marketplace, it’s highly likely it’s being sold by another seller that is potentially damaging your brand reputation and perception. Typically, these types of sellers’ main business strategy is driven by quick revenue rather than investing in quality control, marketing, and brand experience. As a result, customers are often left unsatisfied with the quality of their products, often questioning the authenticity or items, and consequently, generating bad reviews and ratings for the brand.

A category where we noticed this to be a significant issue was Beauty, where most of the brands reviewed experienced a high volume of negative reviews. In comparison to other categories, brands in the beauty category also had a lot more customer questions on their listings; mainly questioning the legitimacy of the products. However, none of the brands replied directly. This is a missed opportunity to generate sales, build trust and protect your brand from other customers or sellers providing inaccurate responses.

For brands that may be sceptical about scaling up their business on Amazon.ae, the benefit of working with an authorised third-party seller such as Pattern, is that you can build your legitimate presence and diminish the impact of unauthorised sellers.  This will help significantly improve reviews and ratings, as well as drive revenue on sales channels outside of Amazon.

A high percentage of cross-border sales in the UAE

In 2020, 86% of consumers made purchases from outside of the region, partly due to high local pricing, and partly because consumers are actively seeking out brands and products that are not yet sold locally.

Vitamins and Supplements is one category with strong cross-border sales. It also scored relatively poorly in the benchmarking, partly due to a competitive seller landscape of unauthorised sellers and a low percentage of product listings that had a rating of 4* and above. Product that has been stored incorrectly and slow delivery are two problems that can impact the customer experience and perception of your brand, even if it is a third-party supplying your product.

Amazon Advertising can help increase your awareness

Brands will also benefit from investing in Amazon Advertising to increase their presence in the market and compete against their peers within the category, especially since competition for Sponsored Brand and Sponsored Product Ads are low.

When we analysed the use of Sponsored Advertising for the 10 Vitamins & Supplements brands selling on Amazon.ae, we found none were utilising this ad type – this is a great opportunity to advertise your legitimate listings at relatively low costs if you aren't already doing so.

To sum it up, being able to protect your brand on Amazon in the UAE means more than making direct sales. What's equally, if not more, important is the impact on Middle Eastern consumers' perception of your brand in general. Having the right strategy will grow your sales while ensuring your brand is protected.

Download the Amazon UAE benchmarking report where we share best practise examples that effect more than just your presence on Amazon or to learn more about how Pattern can help you grow your business on Amazon, contact MENA@pattern.com

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Aug 4, 2022

How Disjointed Sellers Take Away Brand Control on Ecommerce Marketplaces

A top issue we see with brands struggling on ecommerce marketplaces is a loss of brand control due to disjointed sellers—those that aren't following your brand policies and guidelines when selling your products online. Disjointed sellers can be gray market, unauthorized, and rogue sellers, as well as 3P and other sellers that are noncompliant with your branding, pricing, and other forms of representation online.

It can be very easy for brands to lose control of their ecommerce strategy when they can’t get a handle on disjointed sellers. Typically, these brands are either stuck in a game of whack-a-mole or just ignoring the warning signs of bigger issues and hoping for the best. But, when disjointed selling isn't handled right, the consequences can be devastating to profitability. A loss of brand control doesn’t happen overnight, and the factors that contribute to it are long-standing. 

Erode Consumer Trust

Before the advent of ecommerce, brands favored a wide distribution. It was the easiest way to get products to as many distributors as possible. But wide distribution, when left unchecked, leads to leaky distribution—allowing your excess products to end up in the hands of unwanted sellers.

So brands that continue to operate with a wide distribution strategy are losing brand control and are damaging their brand equity and product performance. Why? You’re unable to monitor your products’ pricing, performance, or quality. You can’t dictate how you’re represented by each seller, creating an inconsistent and false representation of your brand to your new and existing consumers. These issues often lead to poor reviews and erode opportunities to build trust with future customers.

Wear Away Brand Equity

In today’s ecommerce landscape, marketplaces and digital platforms connect people and sellers to make online shopping simple and seamless. They also provide customers complete price transparency. Google, for instance, allows consumers to access any of your products on virtually every ecommerce channel and retail location and posts them side-by-side for you to comparison shop.

Now, everyone from your D2C distributors to large marketplace sellers, legitimate 3P sellers, and rogue and unauthorized sellers are on a level playing field—they’re all presented to the searching consumer, and that consumer has the purchase power.

Disjointed sellers have just as much power and authority to represent your brand as you do, without the same quality, pricing strategy, and customer focus as you.

Cause Competition and Price Matching Issues 

In most shopping scenarios, consumers will choose to purchase a product from whichever seller offers the lowest price. Marketplaces like Amazon and Walmart know this, and optimize their product selection based on all retail offers to serve consumers the lowest price for the same item.

This means that as one seller drops the price of your product, the next will follow, and then the next, etc. Everyone gains access to the product at or below MSRP. This opens the door for unauthorized sellers to purchase inventory during promotions or at discounted prices and then turn around and sell the same product slightly below competing sellers’ prices—for profit.  

As customers search for your product, they notice the cheaper price and purchase from the unauthorized seller, rather than paying the price you’ve established with your retail teams. Simultaneously, as Amazon monitors their product listing against other available channels, they notice they don’t have the lowest price. So Amazon, and other marketplaces, in service of the consumer, drop their price to match the lower price offered by an unauthorized seller. To stay competitive, your other channels follow suit. The cycle, also know as the profitability death spiral, continues to drive down the price of your product, grinding away your margins and profitability.

This doesn’t sound like much of a problem if your brand isn’t actively selling on ecommerce marketplaces, right? Unfortunately, it causes big issues for your brick-and-mortar sales, too. Large retail chains like Best Buy and Macy’s noticed this potential loss of sales from ecommerce and needed to defend and protect their profit. Retailers started telling brands that, in order to keep their products in-store (which accounts for 80% of most brands’ sales) they would need to lower their prices to match online prices. Which led to the concept of price matching. If a customer could prove the price of a product was lower somewhere else, Best Buy would match the lower price and charge the brand for the difference.

As other brick-and-mortar retailers jumped on the trend, brands started to see large losses in their margins.

Gain Ecommerce Control with Pattern

The danger that disjointed sellers pose to brands is enormous—without a way to control all of a brand’s distribution points on ecommerce, your brand spins farther and farther down the profitability death spiral. Using custom technology and data-driven insights, Pattern can identify disjointed and unauthorized sellers for your brand and develop a custom strategy tailored to your specific needs to address these big issues as soon as possible. Then, Pattern partners with the econtrol law firm, VORYs, to enforce take downs and save brands who find themselves caught on any stage of the death spiral.

With the right resources and expert help, we’ve helped hundreds of brands to regain their footing and control on ecommerce, win the buy box, and grow their sales. 

Contact us today to regain your brand control.

Aug 2, 2022

How Poor Product Listings Damage Your Brand on Amazon

Since most brands only sell about 20% of their products online, it’s common for executives to turn a blind eye to their poor ecommerce performance—issues there are probably a small problem, right? But if you can pinpoint the lackluster ecommerce profitability to poorly-performing listings, then you can take care of issues now that would snowball to greater losses as your brand grows.

As an expert in ecommerce and the world’s foremost ecommerce accelerator, Pattern has unparalleled expertise in managing brands across global marketplaces. Partnering with Pattern gives you access to data, technology, and top teams across multiple disciplines that help you prioritize great product listings in your overall ecommerce strategy and provides the resources to improve underperforming listings. 

We've highlighted three ways poor listings impact your Amazon marketplace performance.

Negatively Impacts Your Discoverability

If your listings aren’t optimized for SEO and strategic ad placement, they will not be found by customers. And if your products aren’t found, your traffic, conversions, and overall profitability drop significantly. Pattern’s Amazon data and trends suggest that only the top four products listed in an Amazon search result drive more engagement with a brand's listing. So, optimizing your products for organic discoverability needs to be a priority for your ecommerce efforts.

Typically brands find it tempting to underestimate the power of SEO and paid ads, but the stakes are too high to ignore their impact for long. To put it into perspective, Amazon’s ads are clicked 42% more often than Google ads. And, the data shows when people search for products, 74% of them search Amazon first. 

Another reason Amazon search is so valuable is because of where your consumers are in their buying journey. Ads on social media and Google can be valuable, but on Amazon, you have the advantage of knowing your audience’s search intent. Appearing in front of consumers wanting and ready to buy a product that aligns with their search query is a huge opportunity that you can’t miss.

So, you need to be putting the right resources into creating and testing your listing titles, product descriptions, search filters, and backend search terms. (We’ve listed some of the best practices for brands here.) As you find what works, Amazon’s algorithm will be able to better identify your products and serve them in front of consumers ready to buy.

Pattern’s expert SEO teams know the best practices and how to optimize your product listings for the right audiences to improve your rankings for better traffic and conversion wherever you sell your products online.

Misrepresents Your Brand

It’s hard to overestimate the importance of brand affinity on ecommerce marketplaces. One of the key reasons you should be establishing a strong brand presence is to build a consumer base of loyal, repeat customers. 

Repeat purchases from repeat customers are a true sign of a healthy, thriving brand. And when you can establish a great relationship and deep trust with the people you’re selling to, you’ll naturally build positive momentum with their reviews and word of mouth endorsements. In short, it’s easier to reduce buying friction, the cost of conversion, and the cost of acquisition with people who already have an enthusiastic opinion of your products, leading to more conversions and overall success for your brand.

Clearly, it’s valuable to find your brand advocates, but how do your listings help you do that? The first is by claiming the buy box

Many brands struggle with disjointed sellers—3P sellers who have acquired your products, (for example—after buying them on deep discount) and now “pose” as your brand to sell those products to consumers. They often sell your products below their MAP price in order to claim the buy box, attracting more traffic and conversions.

As those customers are drawn to those listings instead of yours, they experience a disconnect in what they normally associate with your brand—often, the copy, media, and even the grammar are ignored for profitability for unauthorized sellers. They often focus on keyword stuffing and quick turnaround to capture traffic and end up poorly representing your brand.

Issues like losing the buy box can hurt your brand long-term, especially if 3P sellers are selling returned, damaged, or fake products in your name. When you have a true understanding of how to optimize your product listings to outperform your competition, you can win the buy box and reclaim your brand presence for your repeat and future customers to ensure better long-term success.

Pattern knows the dangers of disjointed sellers leading to poor brand representation. We have both legal partnerships and listing optimization strategies at our disposal that are proven to help you get ahead of disingenuous sellers and reclaim your brand’s presence wherever you sell online.

Lowers Your Conversion Rates

In order to achieve long-term profitability and growth on ecommerce marketplaces, it’s important to keep your conversion rates as high as possible. Pattern’s experts have found that a low conversion rate signals to Amazon your products aren’t worth showing to customers, significantly lowering your sales potential. But a great conversion rate helps improve your organic rankings and raises your ROI for paid ads—making it easier and less expensive to sell your products in the long run.

So, how do listings affect your conversion rates? Consumers searching for products on Amazon are more likely to purchase from a brand they trust. And without being able to physically sample your product, they have a short window with limited information to decide whether or not they’ll purchase from you. 

We know from extensive data analysis and research there are a few key components of your listing that help in building trust with your consumers. One of those components is the quality of your images.

If your images are blurry or you only post 1 or 2, customers will have a hard time understanding what your product is and its potential value to them. So, they’ll keep searching instead of purchasing your product. Things like the images’ lighting, background, the quality of your equipment, and your editing process shouldn’t be left up to chance. 

Partnering with an ecommerce product photography expert is a way to make sure you get the best photography for your products, and your images are optimized for both your brand and your marketplace.

Pattern Boosts Your Product Listing Performance 

When it comes to optimizing your ecommerce strategy, Pattern has all of the resources you need to achieve long-term profitability. Not only do we have the data and technology to analyze a brand's current performance and opportunity on marketplaces, Pattern has all of the necessary teams to optimize your success from end to end. As the world’s top ecommerce accelerator, Pattern knows the key drivers for boosting listings, conversions, and profitability for brands.

Ready to improve your product listings? Contact us.

Aug 2, 2022

Global Ecommerce Weekly News: 2nd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon sees its share price rise 10% and beats revenue expectations Amazon has exceeded revenue expectations, mainly due to its Amazon Web Services cloud business and its fast-growing advertising arm. Investors who have been concerned about the effects of sharp macroeconomic effects have been reassured as the ecommerce giant has overperformed and seen growth. [Read more on the Financial Times](https://www.ft.com/content/911f7a71-72ed-4c26-8a07-932832ffff4d) Amazon set to launch localised versions of its Prime Video in Southeast Asia Amazon is launching local versions of Prime Video across three countries in Southeast Asia, with new investments in local content. The service will launch in Indonesia, Thailand and the Philippines, where users will be offered a 7 day free trial along with other discounted introductory offers. Prior to this launch, consumers in these countries had been able to shop cross-border on the platform but Prime Video has not been available until now. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/26/amazon-prime-still-worth-it/) Amazon closes down its cloud storage platform, Amazon Drive By the end of 2023 Amazon Prime members will be losing a big feature, Amazon Drive, as the company turns its attention towards its Amazon Photos service. The tech giant wants to focus on photo and video storage features, allowing Prime members to safely back up, share and organise photos & videos with Amazon Photos, which is currently available on iOS, Android and desktop devices. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/01/amazon-prime-members-are-set-to-lose-a-big-feature/) --- Other Marketplace News --- Shopify lays of 10% of its workforce Shopify has cut 10% of its workforce as it struggles with a slowdown in ecommerce growth. The company was relying on a permanent jump in online purchases in the retail space, and are now realising that incorrect assumptions were made, which now need adjustment accordingly. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/27/shopify-cuts-10-workforce/) Alibaba Group goes after primary listing on the Hong Kong Stock Exchange By the end of 2022, Alibaba will become dual-primary, listed on both the NYSE (New York Stock Exchange) and HKSE (Hong Kong Stock Exchange). Being listed in two major financial centres will allow the company to expand its openness and diversity, broaden its investor base, and will help to pave the way for its globalisation strategy. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/26/alibaba-group-pursues-primary-listing-on-the-hong-kong-stock-exchange/) Shopee and P&G launch virtual home shopping experience As part of Procter & Gamble’s Regional Super Brand Day on Shopee, a new exclusive 360 degree virtual home shopping experience feature has been launched, with P&G brands of household essentials on offer, categorised according to rooms. Accessible through P&G’s official store on Shopee’s website and app, the feature includes multi-format touch points like videos, games, and localised content to make online home shopping convenient and engaging. [Read more on Business Mirror](https://businessmirror.com.ph/2022/07/26/pg-and-shopee-launch-a-new-exclusive-360-virtual-home-shopping-experience/) The Hut Group ends investment deal with Japan’s Softbank UK ecommerce company, THG, has recently put an end to an investment agreement with Softbank due to “global macroeconomic conditions”. The deal was made to help fund the expansion of THG’s technology platform before going public in London. The company saw its share price fall after the announcement and its valuation remains well below its flotation price despite recent bidding wars. [Read more on The Guardian](https://www.theguardian.com/business/2022/jul/26/uk-thg-ends-investment-deal-softbank-lookfantastic-zavvi) --- Other Ecommerce News --- Third-party online marketplaces sales to account for 59% of all global ecommerce by 2027 By 2027, third-party sales through marketplaces will be the largest and fastest-growing retail channel globally, accounting for two thirds of all online sales. Alibaba will continue to hold its place as the global leader in retail sales, growing total net GMV sales in 2027 to $1.5trn, and Amazon in second place with $1.2trn. The number of third-party marketplaces operating globally has increased by over 500% since 2007, and is expected to see further growth. [Read more on Internet Retailing](https://internetretailing.net/marketplaces/third-party-marketplace-sales-to-account-for-59-of-all-global-ecommerce-by-2027/)