Social selling companies struggle to protect their businesses from online marketplaces while keeping the field happy
By: Travis Wilson, Momentum Factor.
Selling through Amazon is actually the opposite of selling through a networked direct selling workforce.
With the massive increase in participation from everyday people in online marketplaces such as Amazon and Walmart, direct sellers are scrambling to prevent the erosion of their brands, lowering of price expectations, and reputational risk that comes from the unauthorized sale of their products online.
Indeed, the problem snowballs each year as more and more end-user customers search out direct sales companies’ products at the best price. Experts estimate that companies are facing billions of dollars in losses as marketplaces continue to profit handsomely from the enablement of gray market sales.
Direct sales companies are feeling the pinch across all categories, and are scrambling to stop these sellers and remove listings. As the number of product listings and sellers become overwhelming, many direct sellers are spending a fortune in time and money to try to meet the challenge.