Despite the fast-paced rise in popularity of online marketplaces like Amazon.com, brands find themselves unable to take full advantage of these platforms to maximize eCommerce growth. Often this is because brands continue to rely on traditional open distribution with little – or no – control over online sales. In such an environment, unauthorized sellers flourish, crowding online marketplaces and causing massive intra-brand competition. Making matters worse, these unauthorized sellers have typically made little to no investment in your brand and often sell damaged, liquidated, expired or otherwise lesser quality products to unwitting consumers (who quickly post negative reviews blaming brands for the inferior products they received). These dynamics are creating significant challenges for today’s brands in terms of their ability to grow and to protect long term brand value.
In this video, Vorys eControl attorney Daren Garcia further explains these challenges and how they undermine brands’ efforts to grow their eCommerce sales in this ever-changing landscape.
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