What to Do When Amazon Sales Cannibalize Your Ecommerce Sales

Experiencing a surge in sales on Amazon might seem like a dream come true, yet it can turn into a nightmare for your website's profitability. Here's how to manage the delicate balance between Amazon success and your own website sales.

The Amazon Paradox: Success or Setback?

While Amazon can skyrocket your product visibility and sales, it comes with its own set of challenges, including price erosion and lower margins. Many brands find their website sales dwindling as their Amazon presence grows, leading to a complex dilemma.

Minimizing Amazon's Impact on Your Website Sales

Achieving harmony between Amazon sales and your website's success involves strategic planning. Focusing on price control and distribution management can help safeguard your margins and brand integrity.

1. Mastering Price Strategy on Amazon

Controlling your product's price on Amazon is crucial. The platform's vast reach and consumer trust mean that even a slight discrepancy in pricing can divert potential sales from your website to Amazon. Implementing promotions and maintaining your minimum advertised price (MAP) can encourage customers to buy directly from you.

2. Managing Distribution and Reseller Dynamics

Protecting your product distribution on Amazon can prevent unwanted price drops and ensure that your brand remains in control. Establishing clear reseller agreements and enforcing your MAP policy are essential steps to maintaining price integrity across all channels.

The Importance of Strategic Planning

While Amazon offers a lucrative platform for reaching customers, it's vital to approach it with a well-thought-out strategy. Balancing Amazon sales with your website requires careful consideration of pricing, distribution, and long-term brand goals.

Ultimately, finding success on Amazon without sacrificing your website sales is achievable with the right approach. By controlling your pricing, managing distribution, and having a clear plan, you can enjoy the best of both worlds.

More Resources:

  • Amazon’s Search Engine Ranking Algorithm: What Marketers Need to Know
  • A Guide to Amazon Indexing & How to Check Your Keyword Indexing
  • Amazon Advertising Options Guide: What Marketers Need to Know