Blake Mallen - Direct Selling News https://www.directsellingnews.com The News You Need. The Name You Trust. Thu, 28 Dec 2023 23:06:24 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.2 https://www.directsellingnews.com/wp-content/uploads/2021/04/DSN-favicon-150x150.png Blake Mallen - Direct Selling News https://www.directsellingnews.com 32 32 7 Top Takeaways for Executives from DSU Fall 2023 https://www.directsellingnews.com/2023/12/22/7-top-takeways-dsu-fall-2023/?utm_source=rss&utm_medium=rss&utm_campaign=7-top-takeways-dsu-fall-2023 Fri, 22 Dec 2023 18:17:11 +0000 https://www.directsellingnews.com/?p=20493 As always, DSU was jam-packed with amazing content from amazing speakers. My notebook was crammed with all kinds of great ideas, helpful stats and interesting approaches worth considering for my own business. I learned something new from every single presenter.

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As always, DSU was jam-packed with amazing content from amazing speakers. My notebook was crammed with all kinds of great ideas, helpful stats and interesting approaches worth considering for my own business. I learned something new from every single presenter.

But how do you turn all of that learning into action? The key is to pin down a handful of revelations that rose to the top, and then do something with them! In an effort to help us all take action, whether you were there or not, here are the next steps I would encourage any executive to take, inspired by Fall DSU 2023. 

1 / Get Serious About the Hispanic Market

The most blatantly clear takeaway from DSU was a lot of companies growing in the US have one thing in common: a commitment to the Hispanic market. This was a key point in about four different presentations. Whether you decide to target the Hispanic market or not, every executive needs to be intentional about how you’re thinking about this market, both globally and especially in the US.

JOHN ALCALA / CEO, It Works!

2 / Simplify until It Hurts

John Alcala, CEO of It Works!, reminded us of just how much distributors have on their plates…and that’s before we add all of our stuff (promotions, incentives, announcements, launches…) to the mix! We all talk about simplifying our business, but do we really do it? To experience the kind of simplicity that actually prompts growth and duplication, you’ve got to shed some of the secondary “stuff” that only gets in the way for the average distributor. Go find it and do something about it.

3 / Experiment, Learn and Adapt

pawTree Founder and CEO Roger Morgan walked us through a few scenarios where the company identified a problem; came up with a possible solution; and launched quickly. Some worked well; some didn’t; and some only worked within very specific circumstances, but not others. The takeaways from his specific examples were helpful, but the biggest takeaway is this: am I tracking everything I do well enough to know if it works and why? And then do I keep iterating to see the improvement?

4 / Compare Your Business to Neora

A huge perk of DSU was hearing from Founder and CEO Jeff Olson and Co-CEO Deborah K. Heisz from Neora about their journey in their case against the FTC. The work they’ve done is so vital for every single one of us—both in terms of validating what we do and also shedding light on how we should do it. But in Stuart Johnson’s words, “If you’re still doing things the wrong way, this is not a win for you!” Deb shared some of the elements of Neora’s business (like 80 percent of those who buy from them are Customers and receive no commission) that strengthened their case. It’s in no way the hard-and-fast rule that must be followed, but if you need a standard to compare yourself against, it sounds like we just got a new one.

BLAKE MALLEN / President, Prüvit

5 / Start Using AI (whether you want to or not!)

I’ll admit I’ve been slow to jump on the AI bandwagon. It can feel a bit overwhelming to understand. And it can feel like “just one more thing,” when I’ve already got enough “things” in my life. But after listening to Blake Mallen and Brandon White talk about how they’re putting AI to use right now, I realized my excuses hold little weight compared to the unbelievable benefits that can come from incorporating AI into how I work and live. Rather than figure it all out, I’m simply dedicating 15 minutes a day to using AI in some form or fashion. It’s the only way I’ll learn it and appreciate it. Maybe you should, too.

6 / Success Is in the Segmentation

No single speaker focused on segmentation as a topic, but many alluded to it. Bridgehead Collective’s Founder and CEO Heather Chastain’s generational research certainly shines a bright light on the need for us to segment what we do. The panel on affiliate programs (and how different each program is) certainly showcases how companies are trying to segment the opportunity in new ways. We even learned of the differences among segments within the Hispanic market. We can all do a better job of segmentation. Whatever is holding you back—technology, resources, know-how, WHATEVER!—let’s make 2024 the year we do something about it.

7 / What We Do Still Matters

Vivian Mokome, Founder and CEO of Vivian Mokome Projects, shared a heartfelt reminder that direct selling changes lives…and, in her estimation, can change continents! She sees direct selling as a prominent force for change in Africa. We must evolve as a channel and respond to the market in terms of what it wants and how it wants it. But we cannot lose sight of the actual life changes that have occurred and continue to occur, no matter how tempted we may be to downplay it in the midst of so many changes. Remind yourself of the greater good your company pursues and provides regularly. There’s no other fuel like it.

Were there more takeaways at DSU? You bet!
This is just a starting place. If you were there, think back to the points above in context of your own experience and determine what makes sense for your company. If you weren’t there, this list can still prompt extremely helpful conversations for your team. And bring them to DSU 2024! DSN


Note from the Editorial Staff: We’re excited to include these insights from industry expert Brett Duncan. Look for more content from Brett in the coming months on the pages of DSN.

Brett Duncan specializes in helping direct selling companies evolve into modern social selling models while still maintaining the culture and essence of who they are and what makes them different. He is Co-Founder and Managing Partner of Strategic Choice Partners, a business development firm that helps direct selling companies take their next steps.


From the December 2023 issue of Direct Selling News magazine.

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DSU Fall 2022: Lessons for an Evolving channel https://www.directsellingnews.com/2022/12/02/dsu-fall-2022-lessons-for-an-evolving-channel/?utm_source=rss&utm_medium=rss&utm_campaign=dsu-fall-2022-lessons-for-an-evolving-channel Fri, 02 Dec 2022 18:24:06 +0000 https://www.directsellingnews.com/?p=17756 Direct selling executives need insight and fresh ideas now more than ever before. In one of the most challenging years in direct selling history, leaders faced continued lockdowns in certain markets, changing consumer behaviors, a tense regulatory environment and lingering supply chain issues.

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Hundreds of direct selling executives gathered in person and virtually to share game-changing insight of a channel in a state of transition.
Stuart Johnson
STUART JOHNSON / CEO of Direct Selling News, Direct Selling Partners & NOW Tech

Direct selling executives need insight and fresh ideas now more than ever before. In one of the most challenging years in direct selling history, leaders faced continued lockdowns in certain markets, changing consumer behaviors, a tense regulatory environment and lingering supply chain issues.

To provide practical solutions, Direct Selling University enlisted more than 25 of the industry’s leading executives to share unique perspectives and new approaches regarding some of the most complex issues facing the channel today.

We kicked off DSU with the CEO Forum, one of our highest rated events, and had 75 executives in the room representing $43 billion in revenue,” said Stuart Johnson, Chief Executive Officer of Direct Selling News, Direct Selling Partners and NOW Tech. “We talked about omnichannel strategies, fighting field fatigue (our industry’s version of quiet quitting), attracting the next generation, industry reputation and the rise of affiliate models in the marketplace.”

Johnson cast vision for attendees, calling them to move beyond customer-centric thinking to becoming customer-obsessed. Following his lead, speakers provided tangible ways to improve customer conversion rates, improve salesforce morale, upgrade training systems, drive revenue and create authentic connection with customers.

“DSU gives leaders the chance to open their minds to a bigger picture,” Johnson said. “This event exists to share knowledge, future trends and success stories that inspire, challenge beliefs and spark change. I’m confident that every executive left the event with at least one game-changing idea or initiative to take back to their teams.”

Cracking the Amazon Code:
the first-ever DSU breakout session on eCommerce strategies

Addressing Amazon

Amazon. The eCommerce goliath has been the elephant in the room for years, and for the first time, Direct Selling University tackled the challenge head-on. Without shying away from the complexities of the issue, DSU offered multiple opportunities for participants to listen and learn from experts about how to alter their approach to what is arguably the industry’s biggest competitor.

Blake Mallen, Author, President of Prüvit, delivered the most talked about speech of the event, as well as a break-out workshop session that drew more than 150 attendees, discussing his proven Amazon strategy.

“A lot of customers buying on Amazon assume they are buying from the company directly, and when they receive a damaged or expired product, they’ll either blow up the support team with their complaints or—worse—blast Amazon with negative reviews,” Mallen said. “This stuff can cause serious potential long-term damage to our brands. When you share the message that anyone can start today with the same opportunity to change their life, but when there are different prices for different people, it can erode the very heart of what our channel stands for.”

Continuing the event’s conversation about how to become customer-obsessed, Mallen explained the importance of setting an intentional Amazon game plan, telling attendees that winning the Amazon game begins with controlling their brand’s footprint on Amazon.

RUDY REVAK /
Founder and Chairman, Xyngular

“This is not the future—this is the present,” Mallen said. “Amazon is a key part of the customer journey today, which means this cannot be ignored. This is something we as a channel need to do not only for our companies—but for our communities—and make the shift our industry really needs.”

Rudy Revak, Founder and Chairman, Xyngular, reminded leaders of the importance of taking care of new distributors and helping the sales force stay persistent and positive.

SHELLEY ROJAS /
Chief Brand Officer, Direct Selling News

Shelley Rojas, Chief Brand Officer, Direct Selling News, and Heather Chastain, Founder and Chief Executive Officer, Bridgehead Collective and Direct Selling News Strategic Advisor, announced a new social community platform for DSN Supporters, as well as a new entry-level of Support, the Advocate, that will enhance the user experience and open up becoming a part of Direct Selling News to many more companies.

Magnus Brännström /
President & CEO, Oriflame

Magnus Brännström, President & Chief Executive Officer, Oriflame, focused on the ways the pandemic impacted work trends and how Oriflame reorganized its brand experience structure to improve the product, customer, digital, social selling and employee culture experiences.

Lynne Coté, President and Chief Executive Officer, Princess House, and Laura Beitler, Chief Global Sales Officer, Rodan + Fields, in a conversation with Heather Chastain, discussed the importance of transparency in creating alignment between the home office and the field in the midst of change and challenges.

From left:
HEATHER CHASTAIN / Founder & CEO, Bridgehead Collective, Direct Selling News Strategic Advisor
Lynne Coté / President and Chief Executive Officer, Princess House
Laura Beitler / Chief Global Sales Officer, Rodan + Fields

Dan Macuga, Chief Communications and Marketing Officer, USANA, illustrated the power of their “Start Something” campaign and offered a how-to for companies wanting to create similar initiatives that drive customer engagement, loyalty and connection.

Amber Snow, Director of Diversity, Equity & Inclusion, Amway, shared how executives can make DE&I more than just a buzzword in their companies by facing the fact that people of color make up only 14 percent of direct selling representatives and persuaded leaders to make a commitment to listen, learn and act.

DAN MACUGA /
Chief Communications and Marketing Officer, USANA

Amanda Tress, Founder and Chief Executive Officer, FASTer Way to Fat Loss, shared the simplicity of her company’s one-tier micro-influencer marketing model, and why she believes it could be a powerful strategy for companies fearing FTC scrutiny and enhanced regulations.

Glenn Sanford, Founder, eXp Realty, Chief Executive Officer, eXp World Holdings and SUCCESS, in an interview with Stuart Johnson, discussed the strategy behind eXp Realty’s hypergrowth and why a focus on agent experience has built a collaborative culture that drives value.

Wayne Moorehead, Marketing and Branding Expert and Host of the Direct Approach Podcast, in an interview with Stuart Johnson, reflected on the hot topics and trends discussed during interviews with leaders from 30 different companies who represent $30 billion in revenue.

AMBER SNOW /
Director of Diversity, Equity & Inclusion, Amway

Russ Moorehead, Chief Marketing Officer, Nu Skin, exposed five myths direct selling companies often fall prey to, and why the latest shopping trends give direct-to-consumer companies a significant advantage.

Patrick Wright, Chief Executive Officer, AdvoCare, gave a behind-the-scenes look at the company’s 2019 FTC settlement and described how seeing limitations as opportunities has allowed AdvoCare to increase its customer conversion rate by 10x while better serving their affiliates.

AMANDA TRESS /
Founder & CEO, FASTer Way to Fat Loss

Jesse McKinney, Co-Founder and Chief Executive Officer, Red Aspen, shared a sneak peek into the company’s 2023 strategy, including four pillars—sustainability, technology initiatives, Tik Tok-style training videos and a new Gen Z-focused product category—all inspired by her experience at DSU Spring 2022.

Nick Martinez, Top Distributor, Prüvit, encouraged industry leaders to embrace distributors who are building influence instead of recruiting and why consistently creating social media content can be the key to unlocking top earner potential.

Noah Westerlund, Executive Vice President, NOW Tech, in a conversation with Wayne Moorehead, discussed the importance of Quick Commerce and long-form landing pages to increase conversion rates.

Michele Gay, Co-Founder & Chairwoman, LimeLife by Alcone, described the toll the pandemic took on women especially, and how the Three Laws of Performance helped her sales field and staff overcome the fixed mindsets and patterns of excuses that two years of living in a socially distanced world had created.

From left: STUART JOHNSON / CEO of Direct Selling News,
Direct Selling Partners & NOW Tech
WAYNE MOOREHEAD / Host of Direct Approach Podcast

Ben Riley, President, Young Living, reminded participants of the importance of disruption and how direct selling leaders can leverage small-scale innovation and strategic change management to outsmart gig economy competitors.

Brandy Huyser, Director of XS Energy and Next Gen Strategy, Amway/XS, reflected on 20 years of adventure as the XS Energy brand built momentum by upending business-as-usual at Amway, staying focused on the field, controlling the supply chain through local manufacturing and creation and designing a youth-driven culture.

Michele Gay /
Co-Founder & Chairwoman, LimeLife by Alcone

Jason Dorsey, President, Center for Generational Kinetics, Speaker and Researcher, offered a sneak peek at the first-ever generational research study conducted in direct selling that he will be leading for Direct Selling News to uncover how to quickly connect with, build trust and drive influence across generations.

Gina Ghura, Chief Marketing Officer, MONAT, offered advice for building consumer love through relationship building, personalized customer experiences, distinctive product offerings and a compensation plan that rewards customer acquisition and retention.

Garrett McGrath / President, ANMP

Rajneesh Chopra, Chief Commercial Officer, Immunotec, shared how the company invested in technology and opened new markets and manufacturing facilities during the pandemic, resulting in tremendous growth that is moving them forward in the midst of a cooling economy.

Garrett McGrath, President, ANMP, talked about the power of tiny gains and how improving by one percent every day in the areas of customer retention, community building and compensation strategies can build unstoppable momentum.

Dana Roefer, Author, Entrepreneur and Direct Selling Strategist, highlighted takeaways from her book Shopping Social and shared how education is crucial for helping consumers understand how social shopping can connect them with products that support their best life.

DARNELL SELF /
Executive Vice President of Network & Business Development, PPLSI

Darnell Self, Executive Vice President of Network and Business Development, PPLSI, shared his insights as both a field leader and industry executive, shining a light on the undervalued priorities of effective communication and a healthy team culture.

Gordon Hester, General Manager Sales, North America, PM-International AG, explained how culture is the biggest differentiator in business, and why focusing on revenue drivers and profitability can prevent feelings of entitlement and division within the field.

Must-See (In-Person) Events

The energy of this DSU—the first in-person fall version ever held—was inspiring, and the feedback received was overwhelmingly positive—making this Direct Selling University one of the most successful to date.

Planning for the next DSU event in April of 2023 in Frisco, Texas is underway, and the momentum and excitement is already building.


From the December 2022 issue of Direct Selling News magazine.

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Cracking the Amazon Code https://www.directsellingnews.com/2022/10/24/cracking-the-amazon-code/?utm_source=rss&utm_medium=rss&utm_campaign=cracking-the-amazon-code Mon, 24 Oct 2022 18:15:26 +0000 https://www.directsellingnews.com/?p=17431 Let’s be real, if your product is not on Amazon, customers think you’re weird. Amazon is not where the world is going—the world and consumers are already there.

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DSU Fall 2022 Presentation by Blake Mallen


How the Right Amazon Strategy Can Take You From Pain to Profit.

We have an Amazon problem.

I’m not just talking about our online shopping habits or the fact that 20 Amazon boxes show up on our doorsteps each week. Amazon is the third largest search engine in the world and where 63 percent of all product searches start. Let’s be real, if your product is not on Amazon, customers think you’re weird. Amazon is not where the world is going—the world and consumers are already there.

In my 22 years in the industry, I’ve been blessed to have gathered a fairly unique perspective from living on all sides of the direct selling fence. I’ve been a top earner, an owner that went from a scrappy startup to major acquisition, an officer of a public direct selling company, and now president of Prüvit.

I understand launching, hypergrowth, scaling and all the ups and downs in-between. At Prüvit, we’ve been on the leading edge of the customer-centric conversation and have always been heavily invested in the mainstream trends around the world. Through experience, I can tell you that in order to bring relevance to the channel today, Amazon has to be a critical part of our strategy.

You may assume that since you haven’t chosen to sell on Amazon, that your products aren’t available there. If you think that’s true, pause a moment right now and do an Amazon search for your brand name. Odds are, someone is using your brand reputation and image to sell products without your permission.

If you’re a product-based company, you can either choose to sell on Amazon or unauthorized sellers will do it for you.

The Dangers of Letting Amazon Run Wild

Foxy burrow/shutterstock.com

Imagine being a new distributor, excited to launch your business. You’ve finally worked up the nerve to talk to your first prospect and, when you tell them about your great product, the first thing that customer does is what everyone will do: they either will go to Amazon directly, or stop by Google, where it’s almost certain that one of the first listings that pops up for your product will be…Amazon. So, what happens if the product on Amazon is cheaper than the price you, a new distributor, can sell it to them?

This is what happens when we don’t pay attention to Amazon. In that scenario, you’ll not only lose the customer relationship, you’ll also lose the morale of that brand new distributor and all of their potential growth. And, on their way out, they’re probably going to complain to their upline, who will complain to their upline and now you have a telephone game of complaints and a support team who is dealing with issues out of their control.

And the complaints won’t stop there because you can’t regulate the quality of products sold this way. You don’t know what claims are being made on the product descriptions, how long it’s been in a hot garage, what the expiration date is or what the packaging looks like when it arrives on the customer’s doorstep. All of this does serious damage to the brand. At the end of the day, an uncontrolled Amazon model violates the integrity of the business model and upends what is supposed to be a fair opportunity for everyone.

Defense and Offense

Winning the Amazon game begins by owning and protecting your brand on Amazon. Start by setting up your Amazon store and brand registry so that you have the ability to remove all unauthorized sellers. Amazon makes it easy to hide behind seller names, and many times it’s the same person with multiple accounts.

Trying to deal with these ghosts merely through a company compliance process is extremely difficult, which is why an Amazon brand registry strategy is a welcomed solution. Over time, your company will own the Buy Box, control the price and ensure that all Amazon imagery matches your marketing. Don’t try to shortcut this by setting up a brand registry without selling any products. Amazon wants the sales, and this won’t work long term.

Next, tackle pricing. I’ve seen brands make the mistake of competing with themselves by matching or dropping their prices on Amazon. At Prüvit, we don’t match the price; we raise the price. Our Amazon price is always higher than what distributors sell the product for, which guarantees our distributors always have a better hookup than Amazon. Why would someone go to Amazon and pay more money if they already have a relationship with a distributor who can give them a better deal? We have chosen this channel because we believe in creating and growing entrepreneurs. Give your community the advantage.

There is good news with Amazon. Having a controlled footprint on the most trusted third-party website on the internet lends unique credibility. Ratings and reviews are what customers trust today, so even if they’re not buying on Amazon, a managed presence there is elevating the brand for everyone. Amazon’s search traffic can also organically drive incremental sales with a very high profit margin, so find an expert who knows Amazon’s platform and leverage their advertising options in order to scale. Don’t forget to play offense and defense here as well through strategic keyword selection.

Three Plays to Consider

There are three ways to build an Amazon strategy, and I’ve tried all of them.

1 / Find a wholesale distributor.

This is someone in the field who is already successfully selling on Amazon or has the expertise to take it on. Generally, this takes place through a wholesale agreement. The benefit to this is that it’s hands off—you get the revenue and don’t have to think about it, you limit other sellers and protect your pricing. In my experience, however, because you don’t control the inventory, have no visibility into what’s happening and they often cut corners, this method can leave the brand vulnerable in ways you don’t intend.

2 / Do it yourself.

You can leverage your internal marketing team for design, but building the expertise in-house also means hiring talent that understands both Amazon and the nuances of your company compliance. This can be difficult to find, and building a small, dedicated team will likely be more expensive, time consuming and have a longer learning curve than seeking outside expertise.

3 / Engage an expert.

After learning from the first two options, I now prefer to work closely with an agency that specializes in the direct selling channel to run our Amazon strategy. This allows us to have full visibility and control while staying fairly hands-off on the day-to-day. The sales it generates pays for itself, while allowing us to actualize all of the benefits of protecting our community and elevating our brand. It’s become a real win-win for the company and our community.

How to Win

I’m a firm believer that intention matters—so it’s important to have strong understanding and belief in why you are making a decision to incorporate an Amazon strategy and how it will really help both the company and community. The benefits are clear, so successful implementation really comes down to leading with education, transparency and communication.

You may run into some pushback from the field if some of your distributors are already using Amazon to become super sellers without realizing that they’re degrading the brand in order to advance themselves. But our role as leaders is to do what’s right for our communities and companies long term, and that means protecting the brand and maintaining equal opportunity for distributors.

Start with the top leaders and educate the field on how this new strategy protects their businesses. As it begins to pay off, provide an upside for distributors through a revenue pool, bonus, incentive trip or some sort of additional recognition or reward. This helps create alignment with the company and the community.

It’s easy to understand the value of additional revenue, but I would say that the strategic benefits of Amazon—the brand protection, quality control and increased visibility and credibility—are even more valuable to the company long term than the potential financial benefits.

The world has shifted. We are in the business of teaching people how to shift paradigms, and that begins with a shift in our own thinking. We can’t get stuck in old paradigms because omnichannel visions are not the future—they’re the present. This is the way the Amazon game is played, and—if you want to win—you must control it.


Blake Mallen, President of Prüvit, is a billion-dollar brand builder and community marketing expert. With over two decades of field, ownership and executive experience in the direct selling industry, Blake offers a unique combination of wisdom and innovation that has helped him turn ideas into iconic healthy lifestyle brands.


Three industry leaders share their experience tackling AMAZON—the eCommerce Goliath

By Sarah Paulk

Kateryna Onyshchuk/shutterstock.com

It’s likely that every direct selling executive has been in a meeting when someone has asked, “What are we going to do about Amazon?”

Amazon, with its sprawling marketplace, free shipping and trusted third-party reviews, is radically altering the direct selling landscape. Unauthorized sellers list products for less than the retail price and shoppers flock to it as a search engine to discover their new favorite products. In the process, distributors and the business model in general are losing out.

“What good is a wholesale price that you’re offering to all of your affiliates or preferred customers, if there really is no retail price?” shared Danny Lee, 4Life President and Chief Executive Officer. “If it’s just window dressing and no one ever buys at that price, then it really has no meaning at all. That can’t be a long-term strategy for any company, but especially in our industry where we are relying upon this sales force that works with friends and family on a one-on-one basis.”

Unauthorized and Anonymous

For years, the direct selling industry has stepped up compliance and put safeguards in place to prevent inventory loading or large purchases of products by one person rather than real, individual customers. But Amazon has fed this activity through its powerful privacy protections for sellers and customers alike, making offloading products easy and anonymous.

Under cover of anonymity, distributors can leverage Amazon to engage in “garage qualifying”—the process of using a wholesale discount to buy in bulk and make rank—by setting up multiple shell storefronts under fake names and sell surplus products at a price that is deeply discounted from retail.

This is not only a legal issue, but one that inflicts damage on all parties: Distributors lose sales, companies endure brand damage and customers miss out on product support and affiliate relationships. Effectively combating this endless supply of anonymous sellers means companies must fully own and build their brand presence on Amazon.

“By having a presence on Amazon, we become the ‘authorized seller’ and therefore we can protect our brand from the host of unauthorized sellers who plague many direct sales companies,” said Roger Morgan, pawTREE Founder and Chief Executive Officer. “We control our prices on Amazon, and we are committed to selling our products on Amazon at higher prices than we do on our petPros’ websites.”

The Amazon Learning Curve

A managed presence on Amazon is ideal, but not simple. Advertising, compliance and uncovering the best ways to drive traffic on the platform requires an experienced team—something that is not always easy to find. Combine that with high-end products and the nuanced direct selling business model and that search for knowledgeable talent becomes even more trying.

“If you have your brand registered and trademarked, it’s not hard to set up, but it is what you do afterwards that is challenging,” said Gaya Samarasingha, Kalaia Founder and Chief Executive Officer. “I just engaged our third agency in a short period of time. It’s another whole business, and there is a learning curve.”

Kalaia, which was featured on Amazon during Small Business Prime Day, originally turned to Amazon as a way to enhance new customer acquisition and increase visibility. The company still maintains Amazon as an important part of its sales strategy, but Samarasingha has adjusted her expectations of what the platform will provide for her company.

“Would I call us a success on Amazon? No, we are still a small fish in a humongous ocean, trying to navigate and learn as we go,” Samarasingha said. “We will maintain a presence on Amazon to be able to control our brand and make sure no one else comes in and starts selling our products on it, but it may become less of a priority for us.”

Resource vs. Rival

Amazon can either be a resource or it can be a rival. When companies protect their brand presence on Amazon, the platform becomes a place where customers can find complete product descriptions, unbiased reviews and beautiful product images that serve to only elevate the brand and the industry as a whole. If they see all of this and a higher price, it strengthens their relationship with the distributor who referred them to the product in the first place, protecting the distributor’s business opportunity and the integrity of the model overall.

“The question is, are you going to just be passive, stick your head in the sand and just hope for the best?” Lee said. “Or are you going to run to those theaters of war, if you will, and establish and protect your brand and prices?”


Frequently Asked Questions

  1. What is the BuyBox?
    The Amazon BuyBox is the “Add to Cart” button on Amazon. If you have multiple sellers of an item, the store that gets the sale or gets the BuyBox will rotate based on Amazon Metrics.
  2. How do you “Win the BuyBox”?
    The primary metrics that Amazon looks at are who has the lowest price and who is in Amazon FBA. The best way to ensure that you are winning the BuyBox and getting the sale is to ensure that you are the only seller for your brand.
  3. What is the difference between Amazon FBA and FBM?
    Amazon FBM is “Fulfilled by Merchant.” This means that when a customer orders, the brand owner is required to pick/pack/ship that product to the customer.
    Amazon FBA is “Fulfilled by Amazon.” This means that when a customer orders, Amazon will pick/pack/ship that product from an Amazon facility.
  4. Why is it important to do Amazon FBA?
    Amazon rewards FBA sellers, and it is often a more cost-effective model. Having your products in FBA allows for Prime and Amazon’s quick shipping. It also allows the brand to take advantage of Amazon’s shipping rates and customer service team.
  5. What is the difference between Amazon Seller Central and Amazon Vendor Central?
    Amazon Seller Central is the most popular model. In this model, the brand owns the inventory and is paid for it when it sells. The brand has the most control with this model.
    Amazon Vendor Central is when the brand sells it directly to Amazon, and Amazon has control of pricing, etc. 
  6. Why is our product not the first one that comes up when we search our brand? 
    This is typically due to other brands advertising and winning the paid advertising space on Amazon. You can control this by running a small amount of defensive advertising. 
  7. What is an ASIN, Storefront, Seller Account and A+ Content?
    ASIN is Amazon’s internal identifier code. Similar to a UPC, but specific to the Amazon platform.
    Storefront is a landing page that allows a brand to provide marketing for all of its products.
    Seller Account is the account that is selling the product—the account that owns the inventory and receives the payments from Amazon.
    A+ Content is additional marketing space below the product listing. It is a great opportunity to provide additional brand education to your customers.
  8. What is a Sponsorship Guarantee?
    A Sponsorship Guarantee ensures that the brand will provide credit to a distributor if that distributor can prove they lost a customer to Amazon.
  9. Does Amazon regulate what you can ask customers and what you can send them?
    Yes. Amazon has very specific rules around how you are allowed to communicate with customers. 
  10. What is the average percentage of product returns?
    In the direct sales space, the average return rate on Amazon is under one percent.
  11. Do you recommend using the Amazon Transparency Program?
    No. This program has very specific guidelines for how it is applied. Using it incorrectly will put your brand and trademark status with Amazon at high risk. 
  12. Do you recommend utilizing the Amazon Subscribe & Save Program?
    Yes. The Amazon Subscribe & Save Program has a great adoption and retention rate. 
  13. How do you decide what product you want to sell on Amazon?
    Start with your top selling items and over time expanding to offer your full assortment. Having all your products available from a marketing perspective is important but not necessary Day One. 
  14. How do you decide how to price your products on Amazon?
    Price your product 5-15 percent above retail, so that you are not competing with the field for sales. 
  15. Who manages the customer service side of Amazon?
    Your agency partner should manage all Amazon customer service and use company guidelines to respond to Amazon customers with the correct information. 
  16. Is Amazon good for brand visibility?
    Yes. Amazon is an amazing marketing tool. Aside from the sales opportunity, it is important that your brand have a presence on Amazon to continue to gain exposure. 
  17. How long does it take to set up an Amazon account and start selling product?
    When done properly, set up of a new Amazon account can take 7-14 days. You can start selling product with Amazon FBA within 21 days. 
  18. How long does it take to clean up an Amazon account and become the only authorized seller?
    This depends on the partner or company that is supporting with this activity. Done correctly, Amazon clean up should take no longer than 90 days.
  19. How much work is needed by the Brand Owner in order to launch or clean up Amazon?
    This depends on the partner or company that is supporting the launch. When using the right partner, the Brand Owner only needs to provide images, content and basic product information.        

From the November 2022 issue of Direct Selling News magazine.

The post Cracking the Amazon Code first appeared on Direct Selling News.

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