Within the last few weeks, sellers on Vendor Central have been receiving notices from Amazon terminating their Vendor Central Agreements. Citing that this notice comes after a regular review of product offerings and strategic operations realignment, sellers are left with the potential loss of sales on Amazon. These notices could not come at a worse time for sellers when Black Friday and holiday sales are right around the corner. Sellers have 60 days to develop a new Amazon selling strategy before the agreements end on November 9, 2024.
Hello,
We’ve made the decision to stop sourcing products from your company as part of our regular review of product offerings, and a strategic realignment to optimize our operations and better serve our customers.
Effective November 9, 2024, our vendor relationship will be terminated. We won’t enter into any new agreements, or extend current ones, beyond this termination date.
If you’d like to continue selling your products on Amazon, we welcome you to list your items as an independent seller. As a seller, you’d maintain access to the same customer base. You could also choose from fulfillment options, as well as a range of tools and services designed to fit your business needs and support your continued success.
If you don’t have a seller account, you can sign up today. We appreciate your support during this transition, and thank you for your understanding. Contact us if you have any questions.
The Amazon Vendor Central Team
Even though sellers may be unwilling to transition to selling on Seller Central, some sellers may find that this decision will ultimately level up their sales. Since leaping to Seller Central, we’ve seen one brand grow 14x. Sellers looking for a strategy to continue selling on Amazon should read on to learn how to get started on Seller Central.
Vendor Central Sellers are asking “Now what?”
The next step for sellers who wish to continue selling on Amazon is to create an Amazon Seller Central account. Although the setup process on Seller Central is simple, there are several factors new sellers need to take into account:
Pricing and Fees
Without Amazon setting the pricing for products sold on Amazon, sellers must determine their margins while reviewing new fees from selling on Amazon Seller Central. These fees include Referral Fees, FBA Fees, Return Fees, and more. We recommend sellers adjust their pricing for all fees and potential advertising margins.
Logistics and Fulfillment
Now that Amazon will no longer manage fulfillment, sellers transitioning to Seller Central must choose between Fulfilled by Amazon (FBA) and Fulfilled by Merchant (FBM). Although each fulfillment method has pros and cons, sellers must evaluate which option is best for their selling strategy and margins. Check out our quick guide for determining the best Fulfillment strategy for your business.
Product Launch and Optimization
Although Amazon canceled Vendor Central contracts, existing inventory sold to Amazon will stay listed on Amazon.com until the stock depletes. Due to existing inventory, sellers may face challenges when launching products and optimizing product content in Seller Central. Our team at Commerce Rev has found that Vendor Central product content is more likely to populate on a product detail page compared to content submitted through Seller Central. Sellers must continue managing product content and imagery in Vendor Central until existing inventory runs out and the Vendor Central listings can be marked inactive.
Check out our How to Sell on Amazon Seller Central Guide.
What sellers can look forward to on Seller Central
Transitioning to a new selling model can be stressful, but new sellers on Seller Central will also enjoy features and tools not offered on Vendor Central.
Pricing Control
Without Amazon controlling the listing price, sellers can own product pricing and determine new margins to expand sales goals and growth opportunities. With additional margins, sellers can also begin investing in advertising to drive traffic to product listings.
Marketing and Advertising
With Seller Central, new sellers can access additional promotional tools including Brand Tailored Promotions and Prime Exclusive Discounts. Sellers will also be able to access advanced optimization and reporting features like Search Catalog Performance in Brand Analytics and a Sales Dashboard in Business Reports.
Product Launching
Seller Central’s simplified product launch process allows sellers to launch their products quickly. New sellers will also be able to expand their product catalog listings with additional pack sizes and bundles without purchasing restrictions in Vendor Central.
Commerce Rev Thoughts
Although sellers may feel like they are being left in the lurch, many will find that Seller Central is a saving grace for their Amazon sales. With a competitive pricing strategy, enhanced advertising, and ongoing management, sellers have the potential to see success on Amazon Seller Central.
At Commerce Rev, we have experience supporting brands transitioning from Vendor Central to Seller Central. Check out how one of our clients saw 241% account growth in the first 3 months after jumping to Seller Central. For additional support with an Amazon Vendor Central transition, please reach out to our team.
