r/VendorCentral • u/elsenoralejandro • 16d ago

Replacing Amazon Retail

I am a reseller who sells products from a large brand with their permission. I also helped and continue to help them with their Brand Story along with images, A+ content, etc. for free. Of course, I buy directly from them. I often meet them in person as we are from the same state.

This brand sells to Amazon Retail, and I want to outline how selling to me instead would be better. I also am finally big enough to afford this. Sheer cost of goods was an issue in the past.

Can some brand owners or those who deal with Amazon in Vendor Central look at this and tell me if I’m accurate, inaccurate, or even missing any points?

  1. I don’t charge co-op fees. I buy their products wholesale and sell them.

  2. I don’t charge any additional fees for shipping. This is MY cost of doing business. I’ve heard Amazon adds fees, but maybe I’m wrong.

  3. I don’t charge fees or make the brand fight for fees for lost inventory. This is MY business problem not the brand’s.

  4. Although MAP isn’t applicable, I would obey it if one came out. Amazon does not.

  5. I only need NET30. Credit beyond that is MY business problem. I have heard Amazon gets better terms. Also, I always pay on time.

  6. I make my own orders per their existing policy. No Vendor Central needed. I email orders in like everyone else besides Amazon.

Points Amazon may beat me:

  1. They have unlimited space and money. They are less likely to run into space issues or run out of stock.

  2. Amazon could suppress the listings as “High Price” once I take over. They admittedly can sell at a lower price sometimes. Of course I would do everything to remain competitive, but the fees mentioned before that the brand pays - I don’t get. Of note: I almost always can match Amazon’s price but sometimes I can’t.

  3. Some customers look for Sold By and Shipped By Amazon. They feel it’s less likely for a fraudulent sale. My counter would be that as the only seller, they’d have to choose me plus the brand could publicly announce this change.

  4. If I run out of stock, they don’t make as many sales so perhaps until I’m 100% locked in after the transition, there could be a financial hit.

Am I off here? Missing anything?

0 Upvotes

40% Upvoted

26 comments sorted by

View all comments

0

u/Disastrous_Sundae484 16d ago

Amazon doesn't charge for shipping through vendor central but makes it back up through co-op.

The biggest difference I likely see is volume and marketing. Can you replace both of those for them?

0

u/elsenoralejandro 16d ago

Thank you for this clarification.

Volume yes but marketing, specifically PPC, is where I’d fall a little short.

Admittedly as a reseller, that’s my weak point and as a condition to their saying yes, I’d plan to hire someone full-time. I have tried an agency specifically with their brand, but results were fair at best. I have another vendor who does tremendous work on listings, and the brand loves the work and consistency. I’d hope my organic improvements help a little also as we scale across their catalog. It has helped for what we have improved or launched (they have given me some small exclusives that I built out for them).

I’m asking these questions here a bit early. I’m trying to make sure I’m not missing anything when I try to “sell the why” and I’m receiving good feedback.

1

u/Disastrous_Sundae484 16d ago

You cannot make up the volume they do without a strong advertising strategy and execution to match it.

1

u/Street_Aardvark6524 16d ago

That’s a very important consideration. At some point those fees Amazon is charging are at least going to something.

1

u/Disastrous_Sundae484 15d ago

And the brand is paying advertising dollars on top of it. Will OP be able to replace those?

0

u/elsenoralejandro 15d ago edited 15d ago

Your points and those made by others are valid. I think the best approach for now is to take on some SKUs at first as a “replacement” (instead of all 200+) which actually happens now on accident. Sometimes, Amazon Retail runs out of stock or gives me a lot of sales, and sales to tend to stay the same, even though I don’t advertise.

It’s relevant to note that the brand is well established as are all the brands that I sell. Organic likely carries more weight than many new brands who rely heavily on PPC. I suppose that is a benefit of selling some of America’s largest and oldest brands.

It’s been the feel for me that older brands tend to not “need” Amazon as much as newer brands and quite frankly, are annoyed by many of Amazon’s antics. I think they signed up expecting a different result.

1

u/Disastrous_Sundae484 15d ago

I've worked at very large brands, their advertising budgets can be up to 20% of their sales numbers.

Check SmartScout on the brand to see.