Delimma: Vendor Central or Seller Central? Apr 14, 2019Views: 302
Amazon has certainly shaken up the retail industry, and it is pushing brands to start looking into Amazon as a selling platform. They are a customer focused company and this philosophy has certainly paid off. This week I was with an outdoor brand based in Lancashire, and the day aimed to:
1/ Decide what’s the best Vendor route or seller route for the company
2/ Create an operational plan of getting a product listed, incorporate the fulfilment process and
3/ Analyse profitability as a Vendor and Sellers Central User
4/ Learn how to manage product catalogue – editing the existing listing and creating new ones
5/ Marketing products Amazon Advertising
We have all heard a lot of horror stories that many brands are left with only one online retailer (Amazon) after partnering with Amazon via the vendor programme. This was because Amazon took the online share of their product by competing with other brands likes of Tescos and Argos, causing the latter to drop the relation with the brand. Any brand would like to avoid this situation. It makes logical sense not to take vendor route if this was going to be the final outcome.
Online retail is 40% of the retail market and this is not something that we can risk not thinking about. We have to approach it sensibly. Going with whatever Amazon says may not always be the right option as we have to look after our interest.
Throughout the day we created the best strategy to go forward, discussed how to build a brand on Amazon via EBC and advertising opportunities, and how to work with other retailers which have supported the brand for some time. We were creating a “win-win” situation for everyone!
The conclusion was that taking a vendor route is certainly going to kill other independent retailers as they are unlikely to win the buy box. This then creates other problems, and one of them is creating multiple product listings with different EAN and essentially duplicating the listings. So, for the greater good of the brand and independent retailers we chose to stay with Seller Central. Here’s our action plan created at the end of the day:
Our approach is independent, and even if it worked out this way with this brand, there may be another way around for you. We take time to learn more about you and create a strategy that works best for you. So, if you are a brand and looking for clarity whether vendor route or seller central route is best for you to book an onsite Amazon Strategy Session or a remote session. It is independent, practical and comprehensive.
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