I’m sure many of you heard the news about Amazon deactivating accounts and cutting weekly supply orders for thousands of vendors — you may even have been impacted directly.
Many in the Amazon ecosystem started drawing conclusions that this move was the beginning of the end for “smaller” vendors selling to Amazon. While it looks like much of the initial hysteria was a false alarm, it is still a wake-up call for brands as it highlights uncertainty about Amazon’s future plans for Vendor Central. It’s important for brands to take a step back and assess their current Amazon strategy and ensure that they are prepared to weather future storms that may come their way.
We’ve written quite a bit over the last year about Amazon and what brands must consider when they evaluate their relationship with the eCommerce giant.
Here are some important things to consider now more than ever:
- Diversify your direct to consumer strategy by growing your website and other marketplace channels – you’re not just in a better relationship with Amazon, but you’d also be in a better spot financially. Direct to consumer drives higher margins, increased consumer engagement and brand awareness.
- Explore selling as a third party on Amazon’s marketplace – As a third-party seller, manufacturers retain the power to sell products directly to Amazon’s customers. Products are sold at a retail or list price and manufacturers pay Amazon for use of their online storefront. As an independent seller, you’ll have more control.
- Make sure you “own” your brand on Amazon – this includes signing up for brand registry and ensuring that you have a strong MAP policy – also there is continuing chatter of Amazon’s preference to buy directly from brands so if you are working with Amazon through a distributor or rep, consider finding a way to take control of the channel by directly selling to Amazon or setting up your own brand store.
Ally knows Amazon. We help brands sell successfully on Amazon every day. We were one of the first companies eligible to be a part of Amazon’s Seller Fulfilled Prime program. And we’ve been keeping brands up-to-date on the latest Amazon news and trends for a long time. Take it from us when we say that this isn’t Amazon’s first major move and it’s not going to be their last.
Now is the time to get ahead of these inevitable changes. We can help brands set themselves up for success and adapt to inevitable changes. Schedule time with us to discuss any questions you have about Amazon’s latest move and what your options are moving forward, we’re here to help.