Most business owners who sell on Amazon do so as third-party sellers. But can sellers make this collaboration more effective? Amazon sellers are often puzzled by this question when choosing a product category. Many of them have been selling products through various marketplaces for several years and would like to raise their income being a vendor.
Marketing automation is the trend of the 21st century. With effective online sales, you will increase the efficiency of your business by 20-30%. It’s why many company owners would like to open a vendor account since it’s is the best way to influence their sales. If your turnover is more than 10 thousand dollars per month, you should consider an option to become an Amazon vendor. We will tell you about the prospects associated with this program.
How to Sell to Amazon?
When pondering how to start an online business that will be profitable, you cannot ignore the opportunity of using the Amazon platform for e-commerce sales. This online giant has been conquering new markets over the years and is now the largest marketplace in the world. If you want to build a model when all orders are fulfilled by Amazon and avoid any logistic issues, use the Fulfilled by Amazon program. This program has gained significant popularity and continues to grow every year. Currently, more than 10 million sellers across the world use Amazon FBA for their businesses. However, many big companies sell their products directly to Amazon rather than to customers. These companies are the participants of the Amazon Vendor program. Unlike Seller Central dashboard (Amazon FBA), with which business owners control every aspect of their business on Amazon – from inventory management to customer support, the Amazon Vendor Program puts them in direct contact with Amazon. It allows them to get rid of the routine. If you prefer selling your products this way, be sure of the following:
- You do not directly influence sales, but you can set prices for your products.
- Managers of your company get access to extended Amazon advertising tools
- The label “Sold by Amazon” on the product page adds additional trust in the eyes of buyers
How to Enroll in Amazon Vendor Program?
Amazon Vendor is very promising. Loyal partners can substantially improve their reputation with Amazon’s marketing services. Even the farmer market is growing because of this collaboration. The program is currently available for invite-only. If the Amazon vendor team contacts you and offers cooperation, you should think about it well.
While some sellers have been able to contact Amazon about their interest in becoming a vendor supplier, most are rejected. Even if you follow up with Amazon Vendor managers on social media to leave your contacts, you should be extremely persuasive. Besides, you are unlikely to be added to the database of potential partners to call you back in a few months. According to SageMailer, the best way to get Amazon’s attention is to build a successful brand that generates big sales in this marketplace.
Creating Vendor Account: Products Sold, Private Label, and Other
Upon receiving an invitation to become an Amazon seller, you must agree with the company on the terms and conditions. After that, you get access to Vendor Central on Amazon. Using its functionality, sellers can customize the number and intensity of displaying ads.
If you still have an account on Amazon to place a purchase order, simply use the “Products” tab. People should be careful to add all the important details and prices to the items they need to sell on Amazon. These parameters affect the intensity of sales. Aside from requiring tax identification to apply for an FBA, the shipping process is also cumbersome.
When it comes to order fulfillment, Amazon has strict requirements. You shouldn’t delay deadlines as this can lead to chargebacks, which are essentially a penalty for suppliers. Companies that do not fulfill their orders properly may be disabled from the sold by Amazon option.
Summary
If you’ve decided to sell on the Amazon marketplace, it’s important to figure out which business model is right for you. It’s worth deciding whether to stay with Amazon Seller Central or upgrade to Amazon Vendor Central. The specifics and effectiveness of your business model will depend on how you configure the parameters. If you are a manufacturer, wholesaler, or manufacturer, the Amazon Vendor Program is a perfect choice. In its turn, if you have a small private label or sell few items per month, your choice is Amazon FBA.
