How to Protect Your Brand Against Unauthorized Resellers in Online Marketplaces

What we have learned from the current state of e-commerce is that consumers apart the best products at the lowest price, and customers are convinced by what other customers have to say about your brand. 97% of customers searched online for reviews of your business before they decided to make a purchase. This statistic indicates that your brand’s image of its digital presence has a direct and significant impact on your sales.

Allegedly, US $17.5 million worth of fake sports merchandise, including Superbowl championship rings, was confiscated from a retailer in South Carolina, USA, the day after the Superbowl LVII final in February 2023. While on the other hand, in 2020, Amazon intercepted and destroyed two million counterfeit merchandise destined for its warehouses.

This brings us to the focal point of this article, “How to Protect Your Brand,” especially in the eCommerce industry. To counteract the negative effects of counterfeit goods, your company’s digital marketing and channel management departments can take a few precautions.

What is Online Brand Protection?

The term “online brand protection” refers to the practice of defending a legal business’s reputation on the Internet from imposters who would make a profit off of the brand’s domain name, trademarks, designs, patents, and other identifying characteristics.

Protecting your brand from potential brand abuse entails far-reaching online brand protection solutions, ranging from anti-counterfeiting methods to investing in specialist software solutions. To identify instances of possible brand impersonation or brand abuse, a brand protection plan employs cutting-edge technology to monitor the whole internet, including social media accounts, online platforms, online marketplaces, and illegitimate or fraudulent websites.

What Are The Challenges Faced In Online Brand Protection?

Unauthorized sellers pose several challenges for brands selling online that damage the brand’s reputation and image in various ways, some of which include:

Damage to Brand Reputation

If you’re an eCommerce seller with a well-established image and retail store, you need to ensure taking prompt measures to protect your brand from getting effected by the damage posed by the unauthorized sellers. Online markets make it simpler for counterfeiters to sell fake and imitation goods, which may be detrimental to a brand’s bottom line as well as its reputation among consumers.

Counterfeit products

Counterfeits and ‘dupe’ items are arguably the most noticeable internet threats that brand owners face. It is estimated that counterfeit goods account for more than 3.3% of international trade. The so-called “dupe culture” seems to be gaining over, especially on social media, and unauthorized sellers are increasingly turning to online marketplaces to peddle their wares. It’s important to remember, though, that these sites have rules on things like intellectual property theft and counterfeiting.

Gray market

Genuine products that are sold outside of the authorized distributor. The gray market can negatively impact a company’s distribution network in addition to its bottom line.

Inaccurate Product Information

Unauthorized sellers may alter your product prices, as well as add or remove images, alter product descriptions, and use language that is inconsistent with your brand’s voice. If you want to earn your client’s trust, you must maintain brand uniformity at all costs.

Reduced Revenue

When the company’s products are sold at a discount below the one it has set, the original product of the brand is eventually undercut by its unauthorized seller. While the products in these instances are 100% genuine, the very low pricing at which they are being sold by some merchants may be hurting the bottom line of the original manufacturer. Such unauthorized sellers may obtain the brand’s products through auction, bulk purchases online, or even illegally through the brand’s authorized distributor.

Copyright infringement

The illegal use, replication, distribution, or exhibition of intellectual property that is protected by copyright intellectual property law is known as copyright infringement. Infringing listings on e-commerce platforms or using trademarks or genuine brand names without permission all fall under copyright infringement. Such infringers or unauthorized sellers selling the low quality or poor service using the brand’s name eventually damage its image.

How Can Brands Overcome These Challenges Posed By Unauthorized Sellers:

You must’ve recognized by now the need to build your Intellectual Property plan to protect your brand against the dangers posed by unauthorized sellers. To help you out, we’ve compiled some of the most effective ways to guard your brand’s reputation in the online marketplace.

1. Register Your Brand’s Trademark & Copyright

Do it right from the outset to protect your brand. Ensure that all of your brand’s intellectual property, including trademarks and copyrights, is registered. Once you design your unique and distinct trademark get it registered on the United States Patent and Trademark Office (USPTO) instantly. If your brand has copyrights on any unique content including books, songs, movies, poetry, photographs, paintings, and other art, get it registered with the United States Copyright Office (USCO).

After you successfully register your patents, trademarks, and/or copyrights with the relevant legal bodies, you may share the registration numbers with Amazon and Walmart through the Amazon Brand Registry and Walmart Brand Portal, respectively. This will allow websites and other relevant bodies to back your demands for the removal of fake goods and other violations of the unauthorized sellers.

2. Spot And Report Any Unauthorized Seller Instantly

It’s commonly believed that every online marketplace is aware of the fakes selling on their sites. The reality is that marketplaces have a hard time detecting IP violations and counterfeit products on their platform unless businesses report suspicious listings. It is critical to conduct your market surveillance and report instances of infringement.

If you’re an Amazon seller, you can instantly report any IP infringement or unauthorized sale of counterfeit products to Amazon by reaching out to its seller’s support or via email. After verifying the details provided by you, Amazon will begin its investigation on the accused seller and even temporarily remove its listing till its final verdict.

3. Join the Brand Protection Programs of Online Marketplaces

If your brand‘s name is illegally used on Amazon, you can use the Brand Registry to have that listing or seller’s account terminated with supporting evidence. Possible infractions might also be reported for further investigation. Amazon offers extra services that help further protect your brand on its online marketplace, including its Amazon IP AcceleratorAmazon Project ZeroAmazon Counterfeit Crimes Unit, and more.

Similar to Amazon’s Brand Registry, Walmart’s Brand Portal allows you to register your brand, file intellectual property claims, and administer approved brand agents.

Brands have much less competition from grey market sellers when selling on platforms with more stringent restrictions for sellers.

Partner With Mercatus & M Today to Protect Your Brand Like A Pro!

Brands that sell online face serious difficulties from unauthorized sellers. A sophisticated solution is necessary to help companies reduce the risks associated with illegal sellers through proactive monitoring, strong online brand protection methods, and effective enforcement measures.

We are a team of seasoned eCommerce experts who the ins and outs of each online marketplace including the giants; AmazonWalmartEbayEtsy, Target, and more. We’ll maintain your listings’ optimization and create expanded material that appropriately conveys the tone and message of your business to increase conversions.

We are a growth partner in the e-commerce industry that helps brands and channels get a head start on the competition for tomorrow’s online shoppers. Our e-commerce pros buy from the most reliable suppliers, then feature those products on the biggest online shopping platforms with the best return rate, and ship out orders with secure packaging with on-time delivery within business days.

To better serve the millions of happy consumers in the United States and overseas, we developed bespoke and effective online brand protection strategies that have helped several sellers build their brands from the ground up to well-established businesses with sustainable growth rates. Get in touch with us.

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