admin_fortress | May 07, 2019
Published in Market Trends
Type in “Amazon dropping” into Google and the first autofill you’ll see is “vendors.” In early March, a report emerged announcing a mass dropping of wholesalers by Amazon on Vendor Central. This signals a shift in the Amazon strategy and how the retail Titan is going to choose who they work with “personally” on the platform. It is allocating valuable personnel assets to larger mega brands, leaving the rest to self-serve on seller central. So far, it appears businesses doing less than 10 million are being dropped first, particularly if they sell bulky or oversized items.
“…as Amazon overtakes Facebook and Google as the largest advertising platform, it is possible that with one platform Amazon could gain more accurate end to end behavior insights into their shoppers and vendors.”
First reported on Recode, this transition has since sparked rumors of a new Amazon strategy under the alias, One Vendor. This is the merging of Vendor and Seller Central into a unified portal. It would allow Amazon almost complete authority in telling brands how and where they can sell on the platform. It would also allow the channel to do away with Direct Fulfillment. Amazon has denied reports of One Vendor saying there is no plan under the current name, but reports continue to swirl. Despite denying the reports, there are, indeed, direct benefits to Amazon by merging the platforms. The first, and most obvious, is that it is easier to operate from one platform rather than two. Additionally, as Amazon overtakes Facebook and Google as the largest advertising platform, it is possible that with one platform Amazon could gain more accurate end to end behavior insights into their shoppers and vendors.
“…the correct agency partner can guide you through the legal, logistical, and marketing loopholes seamlessly without the hefty fees Amazon charges…”
As a small brand moving over to Seller Central is often daunting at first, but can yield a significant upside. Seller Central allows a business to be nimble; it unlocks a world of opportunity including price control, promotions, and advertising campaigns. In addition, Seller allows the retailer to forecast and make inventory decisions without relying on Amazon to issue the PO, an excellent adjustment if the retailer has forecasting ability. For many, this can seem a large task; moving inventory, dealing with resellers, winning the buy box, managing MAP, handling SEO and PPC spend is no small feat.
Here’s where we come in.
The correct agency partner can guide you through the legal, logistical, and marketing loopholes seamlessly without the hefty fees Amazon charges through their 1P program and ultimately help grow your business by as much as 30% in the first year.