It’s Not Me, It’s You: 3 Reasons Why Getting Dumped by Amazon Vendor is Actually a Good Thing

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If your brand was unlucky enough to have the plug pulled by Amazon Vendor last week, you may still be licking your wounds and figuring out what’s next. Or, as some brands have reported, perhaps your like-clockwork Purchase Order never showed up and you’re trying to figure out what it means.

Here’s the quick and dirty of what went down last week:

  • On Monday, March 4th 2019, tens of thousands of brands didn’t receive their regular purchase order from Amazon’s Vendor program

  • By Tuesday, March 5th, Amazon communicated with thousands of vendors, telling them their products are a better fit for Amazon Marketplace (i.e. you’re out...no more Vendor PO’s are coming your way)

  • Amazon’s official statement: “We regularly review our selling partner relationships and may make changes when we see an opportunity to provide customers with improved selection, value and convenience.”

  • Full details found here

While the lack of warning is upsetting, I’m here to tell you that getting dumped by Amazon Vendor is actually a good thing.

3 Reasons Why Getting Dumped by Amazon Vendor is Actually a Good Thing

  1. More Control -- Amazon’s Marketplace gives your brand far more control. You control your price, you control your marketing copy, you control your images, you control when & how much inventory you send in, you control your sales trajectory. Just gaining control over one of the aforementioned should be reason enough to leave Vendor for Marketplace...but all of them together have the power to completely change the face of your brand on Amazon (and grow your sales exponentially!)

  2. More Profits -- It’s no secret that Amazon Vendor will nickel & dime you with so many chargebacks & hidden fees it can be difficult to turn a profit. Selling on Amazon Marketplace means selling direct to consumer. You control your MSRP and as long as your product sells for $15+ MSRP, you’ll increase your profits at least threefold.

  3. More Data -- Selling on Amazon Marketplace gives you access to very valuable data...like actual customer order information. This data can be used to gain valuable insights into who is purchasing your products and how you can find more people like them on other channels. Done right, your Amazon business will have a positive halo effect into your other lines of business.

Moving from Amazon Vendor to Amazon Marketplace doesn’t have to be painful.

It is a process and it does require an orchestrated strategy. When done properly, your sales will stay on track and you won’t miss the headaches of selling direct to Amazon. My team has experience helping companies doing $5-$10 million per year on Amazon move from Vendor to Marketplace (either the entire product catalog, or selected SKU’s for a hybrid approach.)

Here’s one example:

Talk our team to find out more about moving to the Amazon Marketplace platform. We’ll schedule a free 30-minute minute consult to learn about your company and see if it’s a good fit. Rest assured, this is not a sales call.

Carl Winans