Many vendors are in a difficult spot right now trying to navigate the reasoning behind the recent decision to stop Amazon replenishment orders. Is Vendor Central a thing of the past or is this just a technical glitch? Some vendors have been told by Amazon that it's just a technical glitch while others have been told that Amazon is no longer purchasing directly from them and that they need to open a Seller Central account. No one truly knows... yet.
Though very abrupt, we're not surprised with the decision as Amazon has hinted that this day may come. Marketplace sellers working through Seller Central now make up over 53% of all retail sales on Amazon. Combine that with margin challenges on the vendor side, and this may simply be a move towards scaling their referral and fulfillment revenue... likely a more profitable portion of their business.
Ok, ok... now what??!
Here are your options:
- Wait. If it is a technical issue, it may be resolved, but there is no information pointing in that direction so don't wait too long.
- Partner more closely with an Amazon 3P (third-party): If you have other third-party retailers selling your products, work with them to support you more heavily on the platform as quickly as possible.
- Set up your own direct to consumer strategy via Seller Central
- Partner with a new, qualified marketplace seller or marketplace service provider: This is a huge decision with many pros and cons. Don't panic. Investigate all of your Vendor Central options and make the best decision for your brand.
How can Retail Bloom help?
First, we'd be happy to learn more about your brand and the challenges you're facing. We can walk you through all of the options above and help you make the best decision for your business. Regardless of the path you choose, Retail Bloom is there to help with your Amazon Vendor Central issues. We can provide you with an experienced marketplace team fluent in all Amazon best practices and can partner with you to drive your Amazon selling strategy.
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Retail Bloom is an eCommerce marketplace agency that specializes in helping brands to increase their sales on online marketplaces like Amazon, eBay, and Walmart.com . |
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