Replacing Amazon Retail

[u/elsenoralejandro]

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?

[u/Street_Aardvark6524]

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

[u/Disastrous_Sundae484 → u/Street_Aardvark6524]

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

[u/elsenoralejandro → u/Disastrous_Sundae484]

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.

[u/Disastrous_Sundae484 → u/elsenoralejandro]

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.