In today’s highly competitive e-commerce environment, brands selling on platforms like Amazon and Walmart face stiff competition from third-party (3P) sellers. These sellers, often reselling the same or similar products, can disrupt pricing, reduce visibility, and impact a brand’s reputation. To stay ahead of the curve, brands need a solid strategy to outperform 3P sellers while protecting their brand integrity and maximizing profitability.
Here are key strategies brands can implement to outperform third-party sellers on Amazon and Walmart:
1. Own the Buy Box
The Buy Box is the key to driving sales on both Amazon and Walmart. Winning it means more visibility and higher conversion rates. To consistently win the Buy Box, brands need to maintain competitive pricing, ensure their product listings are well-optimized, and provide fast and reliable shipping. Monitoring pricing and using repricing tools can help ensure your offer stays competitive without eroding your profit margins.
2. Leverage Brand Registry and Protection Tools
Amazon’s Brand Registry and Walmart’s Brand Portal offer brands the tools to protect their intellectual property and control how their products are represented. By enrolling in these programs, brands can ensure that unauthorized 3P sellers can’t hijack their listings, manipulate product details, or sell counterfeit items. Brands can also enforce MAP (Minimum Advertised Price) policies and remove sellers who violate terms.
3. Optimize Product Listings for SEO
Optimizing product listings is crucial to staying visible on both platforms. This means focusing on product titles, descriptions, bullet points, and keywords that match customer search behavior. High-quality product images and enhanced content (like Amazon’s A+ Content) help set your listing apart from 3P sellers. The more engaging and informative your listing, the better your chances of converting shoppers into customers.
4. Dominate Advertising
Amazon and Walmart both offer robust advertising solutions to help brands stand out from 3P sellers. Sponsored Products, Sponsored Brands, and display ads can increase visibility and drive traffic to your listings. Outspending 3P sellers on high-intent keywords and placements can help ensure that your products appear first in search results and on relevant product pages.
Brands should regularly analyze the performance of their ads and tweak their campaigns to optimize return on ad spend (ROAS). Combining organic efforts with a strong paid strategy can significantly boost brand presence and sales.
5. Strengthen Customer Relationships with Superior Service
Providing top-tier customer service is essential to competing against 3P sellers. By offering fast, reliable shipping (such as Fulfilled by Amazon or Walmart Fulfillment Services), providing easy returns, and responding quickly to customer inquiries, brands can build a loyal customer base. A strong track record of positive reviews will not only drive repeat purchases but also boost your brand’s credibility, helping to outshine 3P sellers.
6. Monitor and Enforce Pricing
Price monitoring software helps brands keep an eye on 3P sellers who may undercut prices, violate MAP policies, or otherwise harm brand value. By using automated tools to track price fluctuations, brands can act quickly to report policy violations or adjust their pricing strategy to stay competitive without engaging in a race to the bottom.
Consistent pricing across channels, especially for brands with an omnichannel strategy, is essential to maintaining trust with both consumers and retailers.
7. Offer Exclusive Products or Bundles
One way to combat 3P sellers is by offering exclusive products or bundles that they cannot replicate. Whether through custom packaging, limited-edition items, or unique product configurations, brands can differentiate themselves and create a competitive edge. Exclusive offers reduce the risk of price wars with third-party sellers, as these products are only available directly from the brand or its authorized partners.
8. Monitor Reviews and Manage Reputation
Customer reviews can make or break a product’s success, especially when competing against 3P sellers. Regularly monitoring reviews allows brands to address issues, respond to complaints, and showcase a commitment to customer satisfaction. Encourage satisfied customers to leave positive reviews, which can help offset any negative feedback and improve product ranking on the platforms.
By actively managing your brand’s reputation, you can build trust with potential customers, making them more likely to choose your product over a third-party seller’s.
9. Build a Direct-to-Consumer (DTC) Presence
While Amazon and Walmart are powerful sales channels, brands should also invest in building a strong direct-to-consumer (DTC) presence. A dedicated online store allows brands to control the customer experience, pricing, and branding fully. By driving traffic to your own website through social media, email marketing, and search engine optimization, you can reduce dependency on third-party marketplaces and build stronger customer relationships.
10. Use Data Analytics to Stay Ahead
Amazon and Walmart offer valuable data on customer behavior, sales trends, and competitive dynamics. Brands that leverage this data to make informed decisions about inventory, pricing, and marketing can stay one step ahead of 3P sellers. Advanced analytics tools can help brands identify new growth opportunities, spot market gaps, and make better product assortment and pricing decisions.
11. Use Enhanced Brand Content (EBC) to Tell Your Story
Enhanced Brand Content (EBC) on Amazon and Walmart allows brands to create visually rich product pages with high-quality images, detailed descriptions, comparison charts, and video content. By utilizing EBC (also known as A+ Content on Amazon), brands can better communicate their unique value propositions, highlight product features, and differentiate themselves from 3P sellers who may not have access to these tools. This engaging content not only improves the shopping experience but can also increase conversion rates and customer loyalty.
12. Implement Subscribe & Save Programs
Offering a subscription option, like Amazon’s “Subscribe & Save” or similar programs on Walmart, can help brands secure recurring revenue and build long-term customer loyalty. Subscriptions encourage repeat purchases by offering convenience and discounts to customers, which can deter shoppers from considering third-party sellers for one-time purchases. By locking in customers with subscription plans, brands can strengthen customer retention and minimize competition from 3P sellers.
13. Develop a Strong Influencer Marketing Strategy
Partnering with influencers in your niche can help increase brand awareness and drive more traffic to your listings on Amazon and Walmart. Influencers can provide authentic reviews and recommendations, helping to build trust among potential customers. Many third-party sellers lack the brand authority or credibility to leverage influencer marketing effectively. By working with influencers, you can boost your visibility and reputation, making it easier for shoppers to choose your products over those of 3P sellers.
Conclusion
Competing against third-party sellers on Amazon and Walmart can be challenging, but brands that are proactive, strategic, and customer-focused can rise above the competition. By winning the Buy Box, leveraging platform tools, optimizing product listings, and offering superior service, brands can build long-term success while outpacing 3P sellers. Adopting these tactics will not only protect your brand’s value but also lead to sustained growth and profitability across today’s most influential e-commerce platforms.
