Vendor Central
Amazon currently captures approximately 5% of all retail sales in the U.S., and the massive e-commerce platform is expected to secure half of all domestic online sales by the end of 2019. Large-volume sellers can take advantage of Vendor Central, Amazon's first-party retail platform to tap into the potential of Amazon.
At Teknicks, we know Amazon Advertising, formerly known as Amazon Marketing Services. Our agile team of Amazon sales experts use real-time data and in-depth analytics to help high-volume vendors optimize Amazon-based profits.
First Party (1P) Amazon Sales
Vendor Central is Amazon's high-volume seller platform geared towards wholesalers who do $10 million or more in sales each year on the e-commerce marketplace. This platform offers a number of advantages to companies that want to focus on production rather than direct contact with the end user.
Through Vendor Central, sellers are assigned a dedicated account manager and have access to Amazon Retail contacts. They are also granted preferential treatment during the Buy Box selection, and overall, the process is significantly less labor-intensive than Amazon's direct-to-consumer model, Seller Central.
All-In Fulfillment Services
As Amazon's first-party retail platform, Vendor Central acts much like an account with a traditional brick-and-mortar retail outlet. Wholesalers are provided with regular purchase orders that vendors fill by bulk shipping to one or more Amazon distribution centers. Amazon retains control over pricing in order to compete with third-party sellers, manages the inventory, and fulfills consumer orders.
1P or 3P? Weighing The Options
In the past, Vendor Central sellers had access to a number of exclusive marketing offers and promotions such as Amazon's "Subscribe and Save" program that offered incentives to do business on a wholesale basis. Recent changes to Amazon's business strategy have shifted the focus away from 1P vendor relationships towards self-directed, 3P sales on the Seller Central platform - and opened up access to Amazon Marketing Services that were previously available to only wholesalers.
Industry watchers attribute this shift to the high cost of managing wholesale accounts and an overall trend towards self-directed e-commerce sales using existing platforms such as Amazon. At the same time, Amazon continues to maintain and develop lucrative wholesale relationships with a number of high-profile, high-volume brands with a heavy focus on a brand's top-selling products.
Need Help Developing Your Vendor Central Strategy?
At Teknicks, our team of Amazon Advertising Services experts can help you weigh your options and develop an effective selling plan that meets Amazon's highly demanding and competitive terms. We use in-depth analytics and real time data to evaluate your current and projected Amazon sales in order to identify the best platform for your enterprise.
Contact us today to learn how we can help you optimize your Amazon revenues.
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