Wondering how to know when something has gone off-track with your Amazon business? Look and listen for these warning signs. Answer True or False to the statements below to assess your level of risk. More than one “True” in each category, and it’s time to seek help!
Is Hybrid Selling Permitted on Amazon? Amazon’s Standards for Brands Selling in the Amazon Store Policy (previously MOA): What You Need to Know
Every few months Amazon revisits their Standards for Brands Selling in the Amazon Store policy. They contact some direct, retail/1P manufacturers with a new wave of pressure to stop selling to third party sellers, or “hybrid selling”.
“Third-party sellers are kicking our first-party butt. Badly,” Jeff Bezos wrote in the 2019 annual shareholder letter. This is an important statement, the first of its kind, followed by hard data – yes, data! – detailing the size of Amazon’s third-party platform – meaning, the amount of total sales generated by third party sellers on Amazon.
At Ideoclick, we work with hundreds of manufacturers on Amazon. This week, we’ve talked to many vendors who didn’t receive purchase orders on schedule. What does it mean? Is Amazon breaking up with you? Some are hurt and horrified. Others are happy, because they were totally ready to break up, like, two years ago, and be a seller instead.
ROUNDUP: Amazon announced their Q2 earnings, and the big story is that they posted their largest quarterly profit ($2.5B)…ever. Wall street is happy, as they’ve now been profitable for 13 straight quarters – thanks in large part to their ad business (growing at 100% Y/Y), AWS, and the “squeeze” they’ve been putting on all of you, manufacturers.
If you aren’t already a manufacturer AND a seller, you need to be! I just returned from ChannelAdvisor’s Catalyst Conference in Nashville, TN, attended by hundreds of third-party sellers on all major marketplaces: Amazon, eBay, Walmart, Sears, Alibaba, etc.
The single biggest growth opportunity for your brand might be opening a third-party seller account. More and more brands (including some of my clients) are seeing significant sales uptick by transitioning to a “hybrid” model to address a variety of challenges on Amazon – persistent out of stocks/inventory management, circumventing Amazon’s aggressive price matching strategy, a means to manage products requiring special handling, getting more direct access to their customers, and to keep selling their CRaP on Amazon (no, it’s not potty talk – if you don’t already know about CRaP, see my previous article).