How To Vet New Retail Accounts to Avoid Online Disaster

August 2019, Pet Product News International

Before you open a new account, follow these crucial steps.

Before e-commerce emerged, vetting new retailers involved straightforward credit checks. Potential accounts would submit signed credit sheets with corporate information, trade references, and bank details. A few calls and clicks later, brands could determine creditworthiness.

However, modern account vetting extends far beyond creditworthiness. In today's e-commerce landscape, brands must consider brand equity, channel control, product diversion, and unauthorized selling risks. As noted, "every time a brand opens a new account, it risks having products sold by unauthorized and unknown merchants on unapproved platforms at hyper-discounted prices."

MAPP Trap has developed a systematic approach to pre-screening accounts. Here are essential vetting steps:

STEP 1: Ask if they sell online.

Many brands fail to ask this fundamental question. Accounts must complete and sign an online disclosure form listing all e-commerce stores by name and platform.

STEP 2: Be wary of deceit.

Don't automatically trust negative responses. Research shows sellers frequently misrepresent their online presence. Use targeted Google searches with specific strings:

• "Amazon ID": [Account Name]
• "Walmart ID": [Account Name]
• "eBay ID": [Account Name]

Check variations with and without spaces, and verify multiple marketplaces.

STEP 3: Ask for proof of brick-and-mortar location.

Request current photos showing exterior and interior views with dates. Verify addresses aren't residential, and avoid accepting P.O. boxes. Use Google Earth to confirm legitimacy.

STEP 4: Continue being wary of deceit.

If accounts claim online presence, verify they've disclosed all stores. Include language in disclosure forms stating non-disclosure can result in deauthorization.

STEP 5: Look at the stores yourself.

Independently investigate all online stores. Search account names using variations. Check for registered domains associated with their email addresses.

STEP 6: Conduct a five-point investigation.

Once you've identified online stores, evaluate these critical areas:

Transparency

Verify accessible contact information including customer service numbers, websites, and physical addresses. "Online sellers that don't provide contact information tend to be high-risk sellers."

Product Mix

Evaluate whether they primarily specialize in your product category or carry diverse, unrelated products. Focused retailers demonstrate better commitment and expertise.

Seller Ratings

Ratings below 4 out of 5 stars warrant investigation. Consider requiring 5-star ratings as a standard.

Buyer Feedback

Review customer comments about service quality, shipping speed, and product condition. Consumer satisfaction directly reflects on your brand.

Bonus paranoid tip about emails

Distrust accounts using personal email domains like @aol.com, @yahoo.com, or @gmail.com. These are easily changed to evade detection and suggest unprofessionalism.

The overarching principle remains proactive screening. "The key is to be proactive, not reactive." Proper vetting prevents costly channel management problems later.

ABOUT MAPP TRAP

MAPP Trap operates as a proprietary search engine designed by former manufacturers. It tracks products across Amazon, eBay, Chewy, Google Shopping, and thousands of other e-commerce platforms to identify MAP violations, unauthorized sellers, and intellectual property infringements. The platform identifies merchant identities and automatically manages compliance communications.