Effective identification of unauthorized retailers and development of new potentials through market observation

For manufacturers, identifying and monitoring unknown sellers and unauthorized dealers is a significant challenge. These dealers can become potential sales channels, but also pose risks to the brand. Non-authorized dealers are often unaware of established quality standards for product presentation, or are unaware of EIA arrangements with the manufacturer, which can negatively impact the company's reputation. However, unknown sellers can also become important sales channels that can significantly impact the manufacturer's sales growth and market penetration. Here, it is important for manufacturers to take the first step to be able to identify unauthorized vendors. In the following article, we will discuss solutions to the well-known problem for manufacturers and will take a closer look at market monitoring for this purpose.

Manufacturers have several options for identifying unauthorized distributors and vendors and taking appropriate action. Here are some key approaches:

1. Marketplace monitoring: Manufacturers can actively monitor the major online marketplaces where their products may be sold. Using specialized tools and software, they can search for unauthorized sellers and monitor their activities.

2. Internet research: Manufacturers can specifically search the Internet to find unauthorized sellers. They can search for products that are not offered by authorized distributors and check whether these sellers comply with the required quality standards.

3, Distributor agreements: Manufacturers can establish clear agreements with their authorized distributors to ensure that they sell products only on agreed platforms and channels.

4. Regular audits: Manufacturers can conduct regular audits to check their partners' compliance with distribution guidelines and identify potential violations at an early stage.

Dedicated market monitoring technologies for manufacturers such as oraya insights can provide valuable support in the various steps of identifying unauthorized merchants and vendors. The use of market monitoring technologies such as oraya insights enables manufacturers to respond proactively and efficiently to the identification and combating of unauthorized merchants. To this end, oraya insights provides manufacturers with relevant features:

1. Exploratory search: oraya insights uses advanced algorithms and machine learning to automatically identify unknown sellers and potentially find unauthorized distributors selling the manufacturer's products without an official agreement, without requiring any manual effort.

2. Early alerts: The software enables continuous monitoring of the activities of identified distributors. Manufacturers receive notifications of suspicious activity or pricing so they can respond in a timely manner.

3. Data-driven analytics: oraya insights collects and analyzes extensive data on vendor activity. Manufacturers can access meaningful reports to identify trends and behavioral patterns that may indicate unauthorized distributors.

4. Sales channel monitoring: the technology captures targeted specific sales channels in an automated manner to ensure that authorized dealers are complying with established sales policies.

5. Competitive analysis: The platform enables manufacturers to track and compare the activities of their competitors. This enables them to detect potential violations of distribution agreements and identify competitive advantages.

6. Customizable filters: Manufacturers can set custom filters and criteria to make monitoring specific to their needs and priorities.

Identifying and combating unauthorized sellers requires a continuous and proactive approach to protect brand reputation and maintain customer trust. In serious cases of brand infringement and unauthorized sales, manufacturers can also take legal action to protect their brand rights. In fact, however, unauthorized retailers can also become new potentials if certain circumstances exist. 

Here are some possible scenarios in which unauthorized dealers can present new opportunities:

1. Reaching new markets: unauthorized distributors could sell products in regions or countries where the manufacturer does not yet have a presence. This allows the manufacturer to access new markets without having to invest in them themselves.

2. Testing product demand: unauthorized distributors could test products in niche markets or with target groups that the manufacturer has not yet focused on. This allows the manufacturer to test demand for its products in new target groups before expanding into these markets itself.

3. Creating new sales channels: Unauthorized distributors might distribute products through unconventional or specialized distribution channels that the manufacturer has not previously considered. This allows the manufacturer to diversify its product offerings and reach new customer segments.

It is important to note that working with unauthorized distributors also carries risks, as they may not meet required quality standards or may increase pricing pressure. In some cases, it may be necessary to stop working with unauthorized retailers or take legal action to protect the brand.

To leverage the positive potential of unauthorized distributors while minimizing potential risks, manufacturers should proactively rethink their distribution strategy. Market intelligence technologies such as oraya insights can help dealers gain better control over their distribution channels and identify potential opportunities while maintaining brand integrity.