Very exciting that you’re considering to LAUNCH on SellerCentral.
Below will explain why this strategy makes sense, and how your company will execute.
- We experience Amazon VenderCentral to be consistently ignorant of brands that are selling less than $10M/year.
- Your company is fits into that and must take actions into your own hands
- The Main Benefit: SellerCentral provides full pricing flexibility. We can update prices daily if we want.
- Assortment Opt-In: We manage the catalog. Amazon becomes a transactional tool for direct sales
- Dropship: Similar to VendorCentral, we can dropship directly to end customers
- Amazon 3PL: For high-volume/low-dollar SKUs we can pay Amazon 3PL to pick/pack/ship on our behalf
- Smaller Average Order Value than traditional VendorCentral
- We assume responsibility for Customer Service
- VendorCentral: Allowances deducted from Wholesale/Invoice
- SellerCentral: Allowances deducted from Retail
Assuming $20 Wholesale & $40 Retail:
- Vendor NET is ~$16
- Seller NET is ~$34 (freight/customer-service is Vendor Responsibility)
- (if freight is $10/unit, NET is still dramatically higher)