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.
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).