{"id":2863,"date":"2020-07-17T16:42:36","date_gmt":"2020-07-17T07:42:36","guid":{"rendered":"https:\/\/www.hideandseek.co.jp\/?p=2863"},"modified":"2025-06-18T14:15:09","modified_gmt":"2025-06-18T05:15:09","slug":"danger-if-left-unchecked-your-companys-products-are-being-resold","status":"publish","type":"post","link":"http:\/\/www.hideandseek.co.jp\/en\/archives\/2863","title":{"rendered":"[Don\u2019t Ignore This\u2014It Could Be Dangerous!] Please Take Another Look at the Risks of Your Products Being Resold!"},"content":{"rendered":"

In subscription-based e-commerce, improving LTV and building brand strength are among the most important factors.
\nAt the same time, these are also the areas where many online retailers are struggling to grow.
\n<\/span>If you aren't focusing on measures to combat resale,
\n<\/span>Implementing the right strategies could lead to improved LTV and stronger brand equity.<\/span><\/p>\n

In the following two articles, we\u2019ll be sharing information on measures to combat resale.
\n<\/span>[1] The Risk of Our Products Being Resold and the Tactics Used by Resellers
\n[2] 6 Resale Prevention Strategies I\u2019d Rather Not Share
\n<\/span><\/p>\n

In this article, we\u2019ll discuss the risks companies face due to resale and
\nThis article discusses the tactics used by scalpers that you should be aware of in order to take the right countermeasures.
\nBe sure to read this and use it as a guide for combating resale!<\/span><\/p>\n

What Is Resale, Anyway?<\/span><\/h2>\n

Resale refers to the act of selling something you have purchased to someone else.
\nPlatforms like Mercari and Rakuma, which many people are using these days,
\nSelling on flea market websites is also a form of reselling.
\nReselling itself is not illegal.<\/span><\/p>\n

However, those who make a living by reselling
\nThe reality is that many companies are suffering losses at the hands of so-called resellers.
\nFirst, what risks do you face when reselling?
\nIt is important to fully understand this.<\/span><\/p>\n

Risks to Companies Arising from Resale<\/span><\/h2>\n

\"\"<\/p>\n

Since customers cancel after their first use, it becomes difficult to recoup the CPA.<\/span><\/h3>\n

When it comes to subscription-based e-commerce, many companies use advertising to attract new customers.
\nThe advertising cost incurred to acquire one new customer is the CPA (cost per acquisition).
\nCPA is based on the expectation that newly acquired users will make multiple repeat purchases.
\nIn most cases, these settings are calculated based on LTV.<\/span><\/p>\n

However, if a reseller purchases the product at the special introductory price and cancels the subscription before the second shipment arrives,
\nWe are unable to recover the CPA.
\nIn addition, scalpers use various tactics to purchase items multiple times at the limited-time introductory price, so
\n<\/span>Failure to implement measures against resale will cause significant harm to the entire company in the medium to long term.<\/b>This is a possibility.<\/span><\/p>\n

This could damage the trust in the product or brand<\/span><\/h3>\n

If there is a problem with a product you purchased from a reseller,
\nBuyers feel that way about the product or the company selling it
\nYou can't help but get a negative impression.<\/span><\/p>\n

For example, if the expiration date on a health supplement you purchased has already passed, or
\nFor example, when cosmetics are not stored properly and you are unable to experience their intended effects.
\nFrom the company's perspective,<\/span>We don't know who ended up with it, and,
\nWe want to avoid a situation where products whose quality we cannot guarantee end up in the hands of our valued customers.<\/b>That's how it is.<\/span><\/p>\n

On e-commerce marketplaces, whether a product is being resold has a direct impact on sales.<\/span><\/h3>\n

Have any of you ever searched for your company's products on Amazon or Rakuten?
\nAre products other than those listed by your company appearing in the search results?<\/span><\/p>\n

If there are products being resold on an e-commerce marketplace,
\nSince price competition occurs among identical products, this directly affects sales figures.
\nResellers almost always list items at prices lower than those set by the company itself.
\nTherefore,Many users end up buying resold items<\/strong>That happens sometimes.
\nSince specifications vary by mall, there are a wide variety of measures that can be taken to combat resale.<\/span><\/p>\n

Even products being resold on e-commerce marketplaces,
\nThis item was originally purchased at the first-time-only price offered through our company\u2019s subscription service.
\nTherefore,<\/span>The extent to which we can strengthen our in-house measures against resale is
\nA critical turning point in whether resales will increase or decrease<\/b>That's it.<\/span><\/p>\n

If we don't take action, we'll continue to be targeted by many scalpers.<\/span><\/h3>\n

Some resellers look for products they can resell
\nThere are people who sell these compilations at high prices.
\nIn other words,<\/span>Once it is recognized as something that \u201ccan be resold,\u201d
\nUnless measures are taken, reselling will continue to increase.<\/b>That's the point.
\n<\/span>
\nBy taking prompt action, we can maximize the company\u2019s medium- to long-term profits.<\/span><\/p>\n

Resellers' Tactics<\/span><\/h2>\n

\"\"<\/p>\n

Do you understand the disadvantages of reselling?
\nI know this, but I suspect there are many people who haven\u2019t taken sufficient precautions, aren\u2019t there?
\n<\/span>To take the right measures, you first need to understand the trends in products targeted by resellers, and
\nIt is important to have a clear understanding of the tactics used by scalpers.
\nBe sure to read this and use it to help combat resale!<\/span><\/p>\n

Characteristics of Products Targeted by Resellers<\/span><\/h3>\n

The products that resellers target are,<\/span>Products with a large price difference between the first purchase and subsequent purchases<\/b>That's it.<\/span><\/p>\n

For example, for a product that costs 1,980 yen for the first purchase and 4,980 yen for subsequent purchases.
\n<\/span>As shown in the image below, this is a product that resellers can use to make money efficiently.<\/span><\/p>\n

\"\"<\/p>\n

With subscription-based online sales, to make it easier to acquire new customers,
\nThese products are often offered at a significant discount during their initial release, and that\u2019s exactly what resellers target.
\nTherefore,<\/span>The ultimate strategy to prevent reselling is to minimize the price difference between the initial price and the price for subsequent purchases,
\nSet prices so that reselling won't yield a profit<\/b>I suppose so.<\/span><\/p>\n

How to Obtain Products for Resale<\/span><\/h3>\n

Here are two ways resellers obtain products.
\nPlease use this to help combat resale!<\/span><\/p>\n

[1] Name, address, email address, phone number, etc.
\nFalsifying membership information to make multiple purchases at the first-time-only price<\/span>
\n<\/b>Resellers falsify the member information they provide at the time of purchase, as shown in the following example, and
\nI'll keep ordering at the first-time customer special price.<\/span><\/p>\n


\n<\/span>Enter and register Chinese numerals using various patterns
\n<\/span>Pattern 1: 1-chome, 9-ban, 15-g\u014d
\n<\/span>Pattern 2: 1-9-15
\n<\/span>Pattern 3: 1-9-15 etc\u2026<\/span><\/p>\n

\uff1c\u30e1\u30fc\u30eb\u30a2\u30c9\u30ec\u30b9\uff1e
\n<\/span>Gmail, Yahoo! Mail, BIGLOBE Mail, etc.
\nMass-produce and register free-address seats<\/span><\/p>\n

\uff1c\u96fb\u8a71\u756a\u53f7\uff1e
\n<\/span>Register a random number<\/span><\/p>\n

For resellers who have registered using this information,
\nTaking a steady, step-by-step approach to implementing these measures will lead to the company\u2019s medium- to long-term profits.<\/span><\/p>\n

[2] Affiliates order products themselves and resell them<\/span>
\n<\/b>If you have set your affiliate program to \"automatic approval\" or \"manual approval,\"
\nThere may be resellers among affiliate marketers.<\/span><\/p>\n

In that case, scalpers would make a double profit as follows.
\n<\/span>1) Performance-based commissions on sales generated through affiliate programs
\n<\/span>2) Profit from Resale<\/span><\/p>\n

When running an affiliate program,
\nIt is necessary to configure the system in a way that ensures the quality of affiliates.<\/span><\/p>\n

Summary<\/span><\/h2>\n

Thank you for reading to the end!
\nDo you now understand the importance of measures to prevent reselling in online retail?
\nNext time,6 Resale Prevention Strategies I\u2019d Rather Not Share<\/strong>We will publish an article on this topic.<\/span><\/p>\n

\u25bcClick here for an article on 6 anti-resale measures I\u2019d rather not share
\n

Hide&Seek Co., Ltd. | Hide&Seek<\/div>
I want to share the wonderful things hidden in the world.<\/div><\/div>
\"\"<\/div>
Hide&Seek Co., Ltd. | Hide&Seek<\/div><\/div>
<\/div><\/div><\/div><\/div><\/p>\n

Hide&Seek, the author of this blog, is,
\nWe are a Fukuoka-based company that provides web consulting services.
\nAs for reselling, whether through our own e-commerce site or an online marketplace,
\nWe have implemented customized solutions for more than 40 clients.<\/span><\/p>\n

We hope you\u2019ll read our next post as well, and we\u2019d be delighted if it helps you combat resale!<\/span><\/p>\n

\"\"<\/a><\/p>\n

\u00a0<\/b><\/p>\n

\u00a0<\/b><\/p>","protected":false},"excerpt":{"rendered":"

In subscription-based e-commerce, improving LTV and building brand strength are among the most important factors.
\nAt the same time, these are also the areas where many online retailers are struggling to grow.
\nIf you aren't focusing on measures to combat resale,
\nImplementing the right strategies could lead to improved LTV and stronger brand equity.<\/p>","protected":false},"author":5,"featured_media":5232,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[6,4],"tags":[10,74,85,86],"class_list":["post-2863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecmall-consulting","category-ad-operations","tag-ec","tag-web","tag-85","tag-86"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\n","aioseo_head_json":{"title":"[Don\u2019t Ignore This\u2014It Could Be Dangerous!] Please Reconsider the Risks of Your Products Being Resold! | Hide&Seek Co., Ltd. | Hide&Seek","description":"In subscription-based e-commerce, improving LTV and building brand strength are among the most important priorities. At the same time, these are areas where many e-commerce businesses are struggling to make progress. 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