Hit by Amazon’s cull of Small Vendor Accounts?
No-one could say they saw it coming, but there’s been plenty of hysteria around the retail giant’s move to close a number of small Vendor accounts, and a distinct lack of actual options for those impacted. If that’s you? Read on…
As our CEO Andrew Banks said on LinkedIn, the initial hype ranged from the “we’re doomed” reactions of brands to the Amazon Agencies using the fallout to boost their business.
Actually, the reality is that “no-one is doomed,” adds Andrew.
“There are plenty of sensible options – and change is a constant in the Amazon world.”
In reality, Amazon’s big push for profit over the last 18-24 months has been the biggest change to us all, whether you’re a big brand or a small one; a Vendor or a Seller.
And it’s not likely to go away, either.
As they tighten their operations more and more, all brands should be ready for profit challenges – and that’s why much of our work in recent months has been around just this theme; finding the right mix of selling models to ensure the right profit outcomes.
Let’s go back though, to those small Vendors struggling with Amazon’s most recent, profit-led decisions.
As every situation is different, there’s no “one size fits all” solution we can share here.
But if you have been affected and want to better understand what your options might be, please get in touch.
Our expert team will be happy to share their thoughts – no sales pitches and no agency vulture behaviour, just the honest advice of people who’ve been handling similar challenges, day in and day out, for a long time.
Useful Links
Amazon Vendors! Don’t miss our next webinar – Navigating Amazon Negotiations, 10am Thursday 17 Oct 2024
Calling any brand preparing for their Amazon Vendor contract renewal! Join us at 10am on Thursday 17 October 2024 for our next Amazon Experts webinar – this time, we’re all about negotiations…
Covering everything you need to know from the negotiations themselves to governance and enforcement, our panel of experts will be ready and raring to help you protect your brand’s interests, keep a strong bargaining position (vital for future negotiations) and safeguard your revenues.
As we discussed way back when in our Vendor Mastery masterclass, negotiations are when a Vendor has a real chance to set themselves apart – and yet so many go in unprepared and find themselves on the losing side against Amazon’s specialist negotiators.
As our Masterclass panel agreed, “go in blind, and Amazon wins”, with unsuitable terms fixed that will form the basis for your future contracts.
So what will you learn in this must-watch webinar?
We’ll be covering:
- Our industry experts will be sharing best practices for negotiating and enforcing terms with Amazon.
- You’ll discover proactive strategies to gain Amazon’s compliance with your negotiated terms, minimising financial risks and maximising your long-term success.
- And, as always, we’ve set time aside for a live Q&A session, where you can pose your own questions to our experts.
Spaces are limited for this one and understandably filling fast, so hurry:
We look forward to seeing you there!
Useful Links
- Sign up now for Navigating Amazon Negotiations
- Watch our Vendor Masterclass on demand
- Read our Vendor Masterclass blog summary
Amazon Export Central – a Gamechanger for MFN Sellers with International Ambitions
Unveiled earlier this month, Amazon Export Central is a powerful new tool with the potential to transform the way Merchant Fulfilled Network (MFN) Sellers expand their businesses across Europe.
It’s part of the European Export Programme…
First, let’s talk about Amazon’s European Export Programme – which the Export Central tool is a part of.
The European Export Programme is a free-to-use initiative that helps sellers export products from six key stores: the UK, France, Germany, Italy, Spain and the Netherlands.
It allows Sellers to reach millions of customers in countries where there’s no Amazon store presence, like Austria, Portugal and Greece, without any of the hassle of duplicating listings or setting up new accounts.
The Programme drives additional traffic and conversions to existing listings, opening up incredible growth opportunities.
Who can join the European Export Programme?
Everyone. It’s available to all Sellers, regardless of whether you use Fulfilment By Amazon (FBA) or the Merchant Fulfilled Network (MFN).
In fact, it’s even better news for FBA Sellers, because you’re already enrolled – for free!
Is it worth it?
Well, Sellers who’ve activated Export from their European stores have reported an average sales uplift of up to 10%.
What challenges should MFN Sellers be aware of?
For MFN sellers handling their own shipping, Amazon advises setting accurate international shipping rates and transit times, so be sure to check with your carrier.
And don’t forget: to start exporting, you’ll need to be VAT-compliant in the destination country (but enrolling in the Union One-Stop Shop (UOSS) can simplify those EU VAT requirements).
OK – tell me more about Export Central
Export Central is basically a tool designed to make it all as easy and seamless as possible.
With just 3 clicks (yes, Amazon likes 3 clicks), Sellers can enable international shipping settings from multiple stores simultaneously, extending their reach to customers in 39 countries across Europe.
Those wanting to enable international shipping settings can do so from multiple stores simultaneously.
There are even pre-configured international shipping settings for selected stores and destinations, including proposed transit times and shipping fees.
Worried they won’t suit you? You can review and fine-tune these settings before you finalise your export setup.
How do you access Export Central?
Just log into your Seller Account, head to Export Central, and start exploring your export opportunities.
Want some expert advice first?
Smart move! Our specialist team is always on hand to help, bringing the commercial clarity, rigour and vision you need to make the right decisions for your Amazon brand.
Big News on Small(er) Fees – Amazon Reduces FBA Charges for Small Oversize Products
Hooray, an Amazon fee reduction to report on! As part of their ongoing efforts to improve FBA (Fulfilment by Amazon), Amazon has announced a significant reduction in domestic and Pan-EU FBA fulfilment fees.
What, when…
It’s already begun – as of 16 September 2024, Sellers offering small oversize products have been benefiting from fee reductions of up to £1.60/€1.87 across the UK, Germany, France, Italy and Spain.
… and why?
With these lower fulfilment fees, Amazon is looking to incentivise sellers to offer a broader selection of small oversize products.
More choice for customers = better customer experience = more potential sales for Sellers = more profits for Amazon.
What constitutes a small oversize product?
Amazon defines small oversize products as those that fall within the following dimensions:
- Length, width, and height – 61 x 46 x 46 cm
- Unit weight – 1.76 kg
- Dimensional weight – 25.82 kg
So it covers a wide range of products, with lots of scope for Sellers to rethink their product strategy and explore expanding their listings while benefiting from reduced fees.
And how much exactly will fees be reduced by?
Here’s a full breakdown:
- 12-30% fee reductions for all four small oversize size bands (for items 61 x 46 x 46 cm, up to 1.76 kg) in Amazon’s UK, France, Italy and Spain stores.
- 22-28% fee reductions for two small oversize size bands (for items 61 x 46 x 46 cm, up to 1.26 kg) in Amazon’s Germany store.
It’s worth noting that all other domestic FBA fulfilment fees across these countries will remain unchanged.
To view the updated fees?
Just log in to your Seller Central account and visit the 2024 Fulfilment by Amazon fulfilment fee changes page.
This has all the details you need to assess how the new rates will affect your business.
What’s the opportunity here for Sellers?
We think there’s great potential here to review your product offerings and identify where you can take advantage of the reduced fees.
If you don’t already sell small oversized products…
By broadening your product range, you could tap into new customer segments, increase your sales and reduce your overall fulfilment costs – all while staying competitive.
If you’re already selling small oversize products…
Happy days! You’ll get an immediate boost to your margins – savings you can reinvest into growing your business, improving your listings or even expanding your advertising efforts to drive more visibility.
Of course, the moves you make should always come down to what’s right for your individual needs and, if you’d like some strategic, commercially driven, profit-focused advice from our team, their expertise is here for you!
Get in touch today and we’ll guide you through the details, helping you make informed decisions designed to boost your margins.
Useful Links
