Amazon & eTail Marketplaces Expert | Omni-Channel Marketing Strategist | Keynote Speaker | CPG & DTC Advisory Board Member
Unpopular opinion: If your 1P account received the “kiss of death” from Amazon Vendor Central this week, the real question shouldn't be how to move to Seller Central. The crucial question is, "Is my product competitive on Amazon?" It's essential to be honest with yourself. You can't solve a problem until you acknowledge it. Take a step back and revisit the basics. Identify the root cause of the lackluster performance. Is it a product issue, pricing concern, content deficiency, or marketing challenge? Addressing these fundamental questions is key to unlocking success on Amazon. I said what I said :)
Juicy take
From my perspective, though, profitability can sometimes vary significantly between 1P and 3P. As a 1P vendor, the product may have been profitable due to Amazon handling many operational aspects like returns, fulfillment, and customer service. When moving to 3P, those costs and complexities shift back to the seller, making profitability harder to achieve unless you have the right infrastructure and strategy in place. So while it’s critical to reassess product competitiveness, it’s also essential to account for the operational differences between 1P and 3P and how they impact overall profitability.
We have proven time and time again that products become profitable when brands go when moving from vendor to seller - just because it doesn’t hit amazons algo NetPPM targets doesn’t mean it’s inefficient for the brand 🤷🏻♂️
Good advice, Luba Ilyasova. Most of all - run the calculations before working with any service provider. The maths must make sense in the short and long-term!
You're hitting the nail on the head. Before making the transition to Seller Central, it's vital to evaluate the competitiveness of your product on Amazon. 👏
It's always good to take a look at the numbers first. However, for many brands they will succeed on 3P if they do it right. Just because their sales figures aren't attractive to Amazon does not mean it isn't worthwhile for the brand.
We’ll said! Chances are most of these brands won’t make it in the long run
Hi Luba Ilyasova... None of the 1P brands I have spoken to were affected yet. What are you hearing? What size of brands? Any particular brand profile? What about you Tim Clark?
Amazon Advertising Agency | GBMedia.io | Amazon Design Kit | amzdesignkit.com ✨ Occasional ultra 🏃♂️🚴♂️
1moHaha most of the time it’s “probably not”