This will allow you to act as the supplier, selling your products directly to Amazon in numerous quantities. Eventually this will attract the attention of Amazon to purchase their product in bulk through the Vendor Central program.
If a company is selling goods through Vendor Central, the description “ships from and sold by Amazon will appear on the order page. Amazon Marketing Services (AMS) provides brands with powerful tools with all sorts of features for getting their products in front of customers.
For vendors, the main objective is to fill out orders on Amazon, billing, and circumventing chargebacks. In the case of a seller, especially those who use FBA, they are responsible for things such as sales reconciliation, tax liabilities, lost inventories, and other such costs.
With a growing emphasis on the value of customer feedback as it connects to the quality of a product, user-generated content can also play a huge role in increasing brand trust and boosting sales. Amazon doesn’t follow the Minimum Advertised Pricing (MAP) guidelines from manufacturers as strictly as they should.
Meaning that Amazon has and will adjust their retail prices whenever they want to base on their own personal algorithms. Vendors that are experiencing issues maintaining their stock or quickly fulfilling orders will be hit with a significant amount of chargebacks which can consume a good chunk of Amazon sellers profits.
The company branding or even their product can be a large advantage and contrast for sellers if they properly manage and leverage it. Although, Amazon sellers have a huge chance of losing control over their brand messaging once they start selling their products through the Vendor Central program.
By losing control over your brand you won’t be able to control how your product is represented on the Amazon Marketplace, products will be shipped through a brown Amazon box, and the seller’s capability to customize the consumer’s experience will be limited. This will allow you to deal with all the tasks of shipping, customer service and returns for the orders yourself or through a third-party logistics provider (3PL).
If you do enroll for FBA, your company name can be included into the order page, your customers will see a description saying “sold by BRAND ABC and Fulfilled by Amazon when they purchase one of your wares. Deciding where it’s best to ship from, and splitting inventory through various fulfillment centers can help save money and reduce the time of transit.
The only way you can gain control and prevent these unauthorized listings is by using a Seller Central account that is enrolled with Amazon ’s brand registry. At certain times the fulfillment or shipping cost can limit the chance to sell lower-priced products through Amazon.
This will rapidly stack up depending on the size and weight of the products that a person is selling. Amazon has managed to become one of the first places a customer will visit when they are searching to purchase a product.
If a company has not managed to come up with a strategy to reach out to these customers, it will be losing out on a huge chunk of the online marketplace. You should not be surprised to know that Amazon thinks about manufacturers and providers, in fact the middle and bigger accounts are more interesting for them than the plain sellers that do sell on FBA.
The selling regimes on Amazon are, majorly, two: Seller Central and Vendor each one of them with their own characteristics, let’s see their differences. To sum it all up here the client is Amazon not the final consumer, what makes it to act as the traditional wholesaler.
Here you can access to an advertisement platform that even is something else, it does have many more formats and advanced options encompassed inside the AMS (Amazon Marketing Services) or, even, you can access to the Amazon Media Group (AMG)’s campaigns that, for example, allow you to do remarketing to Amazon’s clients using Display campaigns on really accurate platforms and media such as online newspaper. The price that you pay for having your products sold on Amazon instead on a third-party marketplace means having the control (and you depend on them to the 100%).
I would emphasize the previous said because getting started onto the Vendor mode could carry you some problems with the distribution channel. Amazon Seller Central is the ideal version for those that do want to sell as a third party to the Bezos’ clients.
Those that are under this regime are the sellers “marketplace” and at the same time they are different from those that do control all the management of orders and shipping, and those that do choose to use FBA (Fulfilled By Amazon) letting Amazon to take care of the little inconvenient and paying a quote for all of that. The ones from Seller Central are the infantry, the ones that let themselves to be kicked on the mud in order to win the Buy Box, they confront a selling process pretty uncomfortable, they have limited advertisement options… On the other side, they have a certain level of control over their product, reporting, direct feedback with the client, price and selling strategy, which is not a kids game.
Before we could access to Vendor Express, which was open to everybody all around the World, but recently they closed it. Doing campaigns on AMS Doing campaigns on AMG To forward a stock and that they would pay in between 60/90 days To pay for having an internal support on Amazon (somebody “x” hours per day, with annual fees which are of 5 or 6 figures with a full-stop in the middle).
You may be forgetting about the returns, delivery problems, struggles with the final client… all of this is more efficient without the need of getting excessively involved in all of that. Apart from the evidently advantages of costs and resources that we have just talked about, now Amazon does want to get involved into that management and does want to prioritize the rotation of your products in order to avoid having them stored forever.
You do have more probabilities of winning the Buy Box and this does mean that you are going to selling a lot more (even though the Vendor mode is famously known because Amazon does go without stock for some weeks, and they do not make any order from you). You can also choose some other services like Pantry which is really quite good thought for those products with a lower price and a high rotation (hygiene, food, beauty, home…) or what is even more surprising: the program of Subscribe & Save, which allows the users to subscribe to a certain product and receive it in the quantity and periodicity that they do choose automatically (hi, parents, here you have some dippers on subscription).
Sold and send by Amazon, this simply sentence dynamites many of the fears of some clients. Really, it is not that Jeff Bezos is going to go out there on sweats with the Godfather’ squad to offer you “protection” in exchange for a fee of your business (they do that without needing to call the racketeering).
They are not interested in allowing the selling of illegitimate products, as for the user experience as well as for their business. You already know that the product sheets have some limited snippets inside the marketplace, they are quite spartan, severe, … with fewer details that the cell where Saint Teresa had to levitate in because there was not even a chair.
For those who are plugged inside Vendor Central they have reserved the suites of the Four Seasons 5 Stars Superior Grand Luke of Idaho. Because some Mister Vendor (or Seller) did pay for having an A+ and, any other one selling the same product with the same EAN, did have access to that A+ for free, and they did compete for the Buy Box.
The set of initials AMS do respond to Amazon Marketing Services (talked previously). The Vendor again, do have more and better selling tools like the Display Ads which are banners that do appear in certain pages and Premium places like the top headers for the promoted products.
Much better, because the advertisement tool of Seller Central is pretty much, much, much (yes, I have written it 3 times) basic. We could even include here the program Vine which is not that platform OSF short videos that was about to take over the world and the other that took over was Lee Sons career.
Propose adding all the products that you can to your listings (to them it is really important selling so much) Be specific in your communications with them. In order to get one of those you have to wait until they send them to you and the best way is by selling lots as a seller in the marketplace or by being a manufacturer or a dealer.
Until now there was a possibility to access to a decaffeinated version without an invitation (we have talked about it previously): the program called Vendor Express, what happens is that they are going close it definitely in the nearly months, so… Imagine how fun it is when you have other selling channels on what you are fixing the highest price (for example on your own e-commerce).
Imagine that your product becomes the next big thing: a fidget spinner with the face of Drake and, by some kind of fate, you are selling it through AmazonVendor. Therefore, you are going to go out of stock and there is nothing you can do about it before you see how a boomerang with the face of Cara Deleting becomes the next big thing.
This is the real big problem many times: you cannot modify your own listing of products. Even the minimum change goes through the fact of opening a ticket to the specific bureau.
We put together this article to outline the strengths and weaknesses of both seller and vendor central and to help you decide if you should have one, the other, or even both. With Vendor Central, Amazon ’s retail team buys and resells your products to their customers.
“Unless brands have absolute control over their supply chain, oftentimes they will discover their products being listed and sold on Amazon by unknown sellers. Having a Seller Central account is a great way to control the messaging of those products,” says Was Gradient, founder of Economy.
Amazon Marketing Services (AMS) gives brands a powerful tool with multiple options for getting their products in front of shoppers. AMS allows vendors to drive demand with keyword-targeted ad campaigns designed to increase traffic to Amazon product pages.
Strategically managing campaigns and tying keywords into product page content is crucial for success. Across all content26 Amazon advertising campaigns, we’ve decreased our clients’ average cost per click by 19%.
As a vendor, your primary focus is on filling purchase orders, billing, and avoiding chargebacks. As a seller, especially utilizing FBA, you will be responsible for sales reconciliation, lost inventory, and taxation liabilities.
Amazon does not strictly follow the Minimum Advertised Pricing (MAP) guidelines from manufacturers. Vendors that struggle with maintaining stock and/or quickly fulfilling orders open themselves up to significant chargebacks.
While it is strictly prohibited to remarket to Amazon ’s customers, that data can be used to better understand who is buying which products and where. Often, manufacturers discover that their retail partners and/or unknown 3rd Party sellers list and sell bundles or older versions of their products without consent.
The only way to control these unauthorized listings is through a Seller Central account that has been enrolled in Amazon ’s brand registry program. Often times the shipping and/or fulfillment costs limit your ability to sell low-priced items on Amazon.
At the time of this article being written, the minimum fulfillment charge for non-media FBA items is $2.41, not including Amazon ’s commission. “It may be hard to fathom, but over 50% of all online shoppers now use Amazon as the first website they visit when making buying decisions.
If brands haven’t created a strategy to reach these shoppers, they’re missing out on a major piece of the e-commerce market. In many ways, Amazon is more important than Google,” notes Economy founder Was Gradient.