Is Your Brand Dealing with Foreign Fraudulent Sellers Disrupting Your Products and Pricing?

Blogs | May 17, 2023

Policing unauthorized third-party sellers can be a huge pain point for many brands on Amazon, especially when you’re gearing up for Black Friday Deals and increased holiday shopping. Investigating and tracking nefarious third-party seller behavior can also be extremely time consuming yet necessary to protect your brand and consumers.

Hundreds of brands are impacted by rogue sellers shipping from foreign locations listing high-velocity items for a fraction of their retail price, with no intention of shipping the item after payment has been received. This marketplace misbehavior can be detrimental to brands in many ways. We have identified these problem sellers through our data insights and seller investigation. We found some of these sellers listing at 75% off retail price. Below includes why brands should be aware of this and examples of which brands are currently affected.

Why Brands Should Be Aware of This:

With Black Friday approaching, if your brand is considering doing Lighting Deals, Amazon references the lowest price sold in the last 90 days. If a rogue seller has brought your reference price point down drastically this will likely affect your ability to offer Lighting Deals for Black Friday.
Most of these sellers range between 0 ratings to very poorly rated. They are not concerned with providing customer satisfaction. In fact, they are creating distrust and frustration to the brand. Consumers are ordering products they will never receive. Amazon will refund buyers for fraud, but this could lead to negative reviews for your brand and loss of sales.
While it can take weeks for a reported seller to be removed from the platform, between now and the removal, they will not only impact your brand, but also impact sales to legitimate sellers and possibly lower the comparison price that Amazon needs a brand to support ahead of Black Friday Deals.

Recommendations and How POTOO can help:

Investing in brand protection is more important now than ever before. Our thorough team of marketplace and brand protection professionals deliver actionable analytics while investigating and targeting unauthorized sellers to stop nefarious activity at the source. While several hundred brands are affected by these rogue sellers, our brand partners can rest easy knowing we are constantly monitoring the marketplace for misbehavior, communicating with all sellers listing on their products and submitting any violations found including copyright piracy, counterfeiting, and more to uphold brand integrity and consumer satisfaction.

To learn more about how POTOO can help protect your brand and consumers from marketplace disruption from unknown, unauthorized third-party sellers message us on LinkedIn or contact us at info@potoosolutions.com to get a free brand assessment.

Example of Some Brands Currently Affected:
Calculated Industries, ClicBot, Furinno, Midwest Tools and Cutlery, NutriChef, Powerbuilt, TIKI, Venum, Winegard, Xbox, ZEISS, Zyerch and others.

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