However, with this opportunity comes the challenge of keeping a firm grasp on brand representation, which is becoming increasingly complex.

The importance of brand control for small businesses cannot be overstated. It is a crucial element in safeguarding reputation, market positioning, customer trust, and ultimately, profitability.

As we head towards the pivotal shopping season, it is more important than ever to approach brand management cohesively, with image and values consistently represented to customers old and new.

So, what is brand control, why is it so important, and how can you achieve it?

Defining brand control

Brand control is a discipline that ensures a business’s product is sold only through authorised channels. It is achieved by leveraging a holistic and legally compliant strategy which aligns with brand identity and wider business strategy.

Ultimately, it refers to a company’s ability to manage how its products are marketed and sold across diverse platforms. This encompasses everything from advertising and packaging to the overall customer experience. Maintaining consistency has become increasingly difficult in the last two decades due to the rise of Amazon and eBay. Local marketplaces such as Alibaba and niche platforms including Vinted and Etsy have only exacerbated the issue.

The consequences of neglect

The repercussions of failing to consider brand control strategies can be severe for small businesses, especially after investing money and time into developing powerful identities that set you apart from competitors.

Unauthorised sellers unbound by your brand standards may misrepresent products and the business through inaccurate or poorly written descriptions and unreliable customer service. This undermines the consumer trust that you have carefully built. In addition, rogue sellers often acquire products through dubious channels, leading to inauthentic or poor-quality offerings.

Further to this, unsanctioned third parties may compromise the marketing strategies that licensed sellers are pursuing. This is detrimental to both the quality of the product and customer experience. The ripple effect on brand growth, profitability, perception and market share may be dire.

Another consequence is inventory management issues, as unauthorised sellers can impede the ability to forecast accurately by winning the Buy Box with unreliable products and impacting legitimate sales.

Brand control implementation

Focusing on long-term strategies for brand control is key. Perhaps the most effective of these is selective distribution, which empowers small businesses to choose which retailers can sell their products based on whether they will adhere to brand standards. Working with an accelerator partner which uses technology and insights to optimise everything from digital marketing to fulfilment can support selective distribution. In addition, platforms such as Amazon have brand protection programmes which offer more control over product representation.

Thankfully for small businesses, there are legal frameworks which bolster this strategy without breaching competition laws. The Vertical Block Exemption Regulation (VBER) in the EU and the Vertical Agreements Block Exemption Order (VABEO) in the UK offer significant flexibility to decide where and how products are sold on marketplaces when a company’s market share in a specific product category is below 30%.

This offers protection and a legal foundation, empowering small businesses to take control of how their brand is represented by limiting sellers to the players who best represent their products. It is important to have appropriate marketplace restrictions included in terms so that your company can enforce these against sellers who violate them.

The role of technology and education

Technology has an indispensable role in seizing and maintaining brand control. Data analytics tools enable you to monitor distribution networks continuously, identify potential unauthorised channels and ensure all sellers are complying with brand standards. These insights allow small businesses to address inventory issues, monitor pricing discrepancies and maintain image overall consistency.

An equally crucial aspect of the brand control equation is consumer education. Launching campaigns which highlight the proliferation of unauthorised sellers helps customers discern legitimate sellers and reinforces confidence in your brand’s integrity.

Seize control over the shopping season

With Black Friday on the horizon marking the beginning of the Christmas shopping season, now is the time to prioritise brand control. It will allow you to protect your carefully cultivated reputation, draw back existing customers and provide an outstanding experience for new ones to ensure your brand thrives amidst e-commerce’s complexities.

By embracing strategic brand control and utilising tools such as data analytics, legislative protection and consumer education, you will set your business on a path to lasting success.

For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.