Manufacturers and brands are paying more and more attention to the online distribution channel, and retailers like Amazon are achieving that higher percentages of their sales are online. If for many years manufacturers have monitered the prices in the physical channel, whyuld they monitor the online channel?
Today we will present to you 5 reasons why brands should start to monitor their products and prices of their online distribution:
1. Know what is happening with their prices: different to the physical channel, the online channel experiments a lot more changes in price in a lot less time, as well as being a great showcase for their brand. Not knowing what is happening with these prices would mean ignoring the image of the brand that potential clients see.
2. Compare their price strategy to the competition´s: brands as well as retailers are not alone in the market, being able to compare their price strategy to those of their competitors will allow them to stay in the game and know just what is happening in their own distribution channel. Am I losing my position to one of my competitors?
3. Anticipate price wars: The main party to be injured in a price war is the manufacturer; if their distributors sell their products with a small margin they will end up stopping working with this brand, which in the long run mean the destruction of that channel. In turn, this problem will have a secondary effect short term, brand will have a poor visibility of prices compared to others that do control their channel, i.e.; their products will be perceived as less value for having much lower prices than their competitor´s.
4. Control merchant impact; marketplaces are in fashion and more and more there are a larger number of small businesses that commercialize products of brands without any type of distribution agreement. The problems that we have mentioned before are accentuated when we are talking about hundreds of businesses that are commercializing the brands products with no agreement. A poor service could translate as a poor view to that brand. A manufacturer should know who and for how much their products are being sold online.
5. Follow the evolution and rating of their products: it isn´t any less important to be able to know I the experience of the user with the products of the brand is positive o not, for this they can monitor channels of opinions and therefore see the evolution and ratings as well as new opinions about their products.
As well as these commented reasons, there are many more that Minderest could help you with as a manufacturer to better your position in the distribution channel. We would be delighted to explain these to you during a demonstration of our software.