March 12th Update:
- Amazon cut ties with vendors selling less than $10 million annually on Amazon.
- Amazon is terminating vendor accounts that use FBM shipping and directing them to create Seller Central accounts.
- Amazon has notified multiple larger brands (annual sales exceed $10 million) that their Seller Central accounts will be removed, restricting them to working with Amazon Retail.
- Current Kaspien partners can contact their account manager to discuss strategic responses to any negative effects caused by this change.
- Brands wishing to represent themselves on Amazon can partner with Kaspien’s Amazon agency division for a seamless transition to a new sales model.
On March 4th, Amazon notified tens of thousands of vendors that it was cutting ties with them. Vendors who sell less than $10 million annually on Amazon were informed that Amazon Retail would no longer place orders to them. Amazon has yet to confirm the factors behind its decisions and whether more brands will be removed from Vendor Central. Information is currently very limited, but we are working directly with our Amazon account manager to get the latest details.
The decision is yet another indication of Amazon shifting towards the fabled One Vendor system first reported by Recode, which would merge Vendor Central and Seller Central into a single system.
According to Hilary Milnes of Digiday, this move is the third sign in the past month of a significant shift at Amazon. Last week, Amazon notified sellers who offer Fulfilled by Merchant (FBM) shipping that their Vendor Central accounts would be terminated and directed them to create an account on Seller Central. Amazon also informed larger vendors (whose sales on Amazon exceeds $10 million annually) that their 3P account in Seller Central would be removed, restricting them to Vendor Central and forcing them into an exclusive wholesale relationship with Amazon Retail.
The lack of forewarning has left impacted brands racing to create the necessary infrastructure for a new sales model before the loss of their Vendor Central or Seller Central account costs them thousands in lost revenue.
What to Do Next
If you are a current Kaspien partner and were affected by this event, please contact your Kaspien account manager. We’ll work with you to create a customized solution for any negative effects caused by this change.
For brands who want or need to use this change to alter their Amazon strategy, Kaspien’s Amazon agency division provides an effective and immediate solution. In this agency model, our partners still benefit from Kaspien’s marketplace expertise and innovative technology while maximizing control over their brand on Amazon.
We’ll manage your Amazon channel from within your brand’s Seller Central or Vendor Central account. As an end-to-end Amazon management agency, we provide all the infrastructure and support you need to set up an account and resume selling, including
- inventory management
- compliance expertise
- holistic marketing (search marketing, search engine optimization, social and influencer campaigns)
- Social media management
- Case management and lost inventory refunds from Amazon
- Customer review and feedback management
- Detailed, transparent reporting
If interested in representing yourself on Amazon, contact Kaspien today.
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