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Keeping retailers on the same page

How AFG used Red Points Seller Tracking to harmonize its distribution network

559

Listings monitored online

41

Sellers tracked

347

Broken compliance issues detected

The challenge

As owners of an extensive distribution network, AFG found themselves stuck with the task of manually tracking a multitude of sellers. Staff members were having to dedicate huge parts of their day to finding and documenting partner information, product prices and third-party domains. All this work left AFG with no time to act upon their findings.

The Solution

Using Red Points Seller Tracking meant AFG no longer had to do the heavy lifting in monitoring their online distribution. Red Points’ platform now tracks AFG’s entire online seller network, allowing them to monitor the activity of every online distributor and retailer selling products from their brand. This includes not only the authorized partners but totally unknown ones, too.

Red Points’ flexible pricing structure gave AFG a bespoke solution, allowing them to monitor every single online channel their products is sold at and obtaining all the relevant information they need to have full visibility over their online sales.

The Result

AFG staff now have time to take action on the data collected, as everything they need to know to inform strategic decisions is presented in monthly reports and intelligible graphs. 

Their distributors and retailers are adhering to the MAP policy, and AFG’s relationship with partners is better than ever. With no price erosion from sellers competing within their network, the AFG name is protected, and their reputation is no longer under the same threat.

About AFG
From their start with selling products in parking lots, AFG has become an international wholesale company. They partner with brands to offer a catalog of over 8,000 products from a wide range of industries. Their reach and product range expand every year, from homeware to vaping products, and their brand name grows with it.

AFGdistribution.com

Wholesale distribution

North Carolina, USA

Wholesale distribution

“If you’re a company and you’re looking to protect your brand and you already don’t have a way to monitor and enforce your agreements with distributors, you should be looking into Red Points”

Luke Mallory,
Ecommerce Manager at AFG Distribution

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The AFG Story

AFG got their start back in 1999 selling their products in the parking lots of rock concerts. Since those days, AFG has become an international wholesale company, partnering with brands to offer a diverse catalog of over 8,000 products.
Their reach and product range expand every year, from homeware to vaping products and gifts of all kinds. As this honest and positive company grows, their brand name grows with it and so does their base of happy, contented partners.

Tracking everything a brand needs

Monitoring partners is more than just tracking breakages of a MAP policy. Being able to keep track of changes in sale price, the performance of partners, sellers operating outside of preferred domains, and stock numbers is vital. All this data is very relevant for a distribution manager to know and to manage a network optimally. To add another level of complexity, all these data points are based on distributors
a brand is already aware of. But you can’t get a complete
view of a brand’s products without also seeing unauthorized online sellers. These accounts can come from authorized sellers offloading stock to a third party, or selling them under a different name, or even manufacturers selling products created in the “third shift”.
Since using Red Points’ Seller Tracking platform, AFG have been able to detect sellers they didn’t know were selling their products. AFG report that this has allowed them to build stronger, more profitable relationships with retailers.

Freed time

Managing a wide net of sellers and other partners in a distribution network is never easy. Having a MAP (Minimum Advertised Pricing) policy in place is supposed to keep all these partners on the same page, but even an agreement like that rarely works as a silver bullet.
What this meant for AFG Distribution was countless hours spent manually maintaining their network. So much time, in fact, that staff members were left unable to actually act upon their findings.
Red Points’ Seller Tracking platform gives customizable templates to contact existing partners about MAP breakages, SKU issues, and domain issues to let brands work together to keep a balanced and conflict-free distribution network.

Better distributor relations

Distribution networks are best when everyone involved works together and plays by the same rules. In an online world, having one seller drop their price can mean undercutting the entire network.
A process of price erosion then starts, where sellers incrementally lower their prices to stay competitive. In time, the profit margins get gradually worse for everyone involved, and the brand may even start to earn a reputation as a cheap product.

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Online reputation

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Remove fakes

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Protect customers

AFG - Wholesale Industry

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