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What customers say
- Open to Anyone to sell your products
- Sells directly to customers on Amazon
- Handles own logistical operations
- Payment terms are quicker
- Can choose retail price
- Limited advertising options
- Complex sales process
- Fees 20-30% of retail price
Elite Amazon programme
- Invitation only
- You sell to Amazon directly
- Fixed logistical operations
- Traditional payment terms
- Amazon controls retail price
- Multiple advertising options
- Traditional sales process
- Enhanced product pages A+ content
- Amazon marketing support
- Fixed fees as low as 8%
- Includes full product handling
- Includes customer service
Selling direct to Amazon – Pros
Boosts Consumer Confidence
Having your products sold through Vendor Central means that, as far as shoppers are concerned, your product is being “sold by Amazon.” That seal of approval can provide a boost in consumer confidence that you don’t have as a third-party merchant.
Special Brand advertisement Opportunities
Amazon Marketing Services (AMS) gives brands a powerful tool with multiple options for getting their products in front of shoppers. AMS allows direct vendors to drive demand with keyword-targeted ad campaigns designed to increase traffic to Amazon product pages. While both sellers and vendors have access to AMS, Direct vendors users have more robust options when it comes to running AMS ad campaigns.
Strategically managing campaigns and tying keywords into product page content is crucial for success. Across all content26 Amazon advertising campaigns, we’ve decreased our clients’ average cost per click by 19%. In addition, we’ve seen a more than 2x increase in return on ad spend. You can read more about Amazon’s pay-per-click service in our Definitive Guide to Amazon Marketing Services.
Simplified Business Model
The process of “doing business” with Amazon is simpler through Vendor Central than through Seller Central. As a vendor, your primary focus is on filling purchase orders, billing, and avoiding chargebacks. As a seller, especially utilizing FBA, you will be responsible for sales reconciliation, lost inventory, and taxation liabilities.
A+ Content and Other Marketing Tools
If you’re selling through Vendor Central Amazon offers vendor the option to create enhanced content via Amazon A+ Detail Pages. You also have the ability to participate in promotional programs such as Subscribe & Save (Amazon’s subscription service) and Amazon Vine, in which your product is sent to top reviewers before it ever hits the shelves. Consumers value what other consumers have to say far more than they do advertisements, so user-generated content can translate into a sales boost.
Amazon Vendor Direct – Cons
Amazon does not strictly follow the Minimum Advertised Pricing (MAP) guidelines from manufacturers. Amazon can and will adjust retail pricing at any time based on internal data.
Amazon has very specific and rigid guidelines for filling their purchase orders. Vendors that struggle with maintaining stock and/or quickly fulfilling orders open themselves up to significant chargebacks.
Amazon Normal seller – Pros
Seller Central provides you with significant amounts of consumer data at no charge. As a seller, you have access to Amazon customer data that can be used for a multiple of purposes. While it is strictly prohibited to remarket to Amazon’s customers, that data can be used to better understand who is buying which products and where.
As the seller, you have the ability to control retail pricing so you are able to maintain established retail pricing for other channel partners. Also, you are able to automatically match your competitor’s pricing to stay competitive.
Often, manufacturers discover that their retail partners and/or unknown 3rd Party sellers list and sell bundles or older versions of their products without consent. Typically these listings have limited content and images. The only way to control these unauthorized listings is through a Seller Central account that has been enrolled in Amazon’s brand registry program.
Amazon Normal seller – Cons
Often times the shipping and/or fulfillment costs limit your ability to sell low-priced items on Amazon. At the time of this article being written, the minimum fulfillment charge for non-media FBA items is $2.41, not including Amazon’s commission.
Studies have shown that items “Ships from and sold by Amazon.com” consistently outsell products offered via FBA or “Shipped and Sold by 3P Seller” Also if other 3P sellers were to list and sell against you via FBA, a significant percentage of total sales would be lost to those sellers. This is especially critical if you are attempting to use Amazon’s Sponsored Product Ad Tool. Your ads will only appear if you are the seller in the buy box.
Why Your Decision Matters
“It may be hard to fathom, but over 50% of all online shoppers now use Amazon as the first website they visit when making buying decisions. If brands haven’t created a strategy to reach these shoppers, they’re missing out on a major piece of the ecommerce market. In many ways, Amazon is more important than Google,” notes Ezonomy founder Wes Grudzien.
It’s critical that you consider a distribution strategy specific to Amazon. Our Elite programme offers you the Direct Vendor status that allows you to take full advantage of Amazon’s powerful marketing tools such as Amazon Marketing Services and A+ content, have literally everything been taken care for you (warehousing, dispatch, customer service and more…)