Amazon is an unbeatable marketplace. Latest estimates suggest that over 350 million products are sold through the site, across the widest array of categories. For any business with a product to sell, that’s a crucial customer base to tap – and you can sell to directly to end-users, by using Amazon as sales channel with huge reach.
However, if you are looking to sell at scale, there is another alternative. Amazon offers an invite-only portal for third-party suppliers – Vendor Central. Via this platform Amazon is able to source products directly from vendors in bulk, stock them in their own warehouse, and resells them to customers. Currently, over 12 million unique items are sold via Vendor Central.
It’s an opportunity that any business should consider.
However, Vendor Central isn’t without its challenges. Sure, it provides volume and revenue, but Amazon also take a cut. There are numerous different fees to be aware of – financial deductions that can seriously dent, or even erase your margin, especially at a lower wholesale price. Plus, if you don’t comply precisely with Amazon’s regulations, they can impose a further penalty of up to 25%! These ‘chargebacks’ will definitely wipe out your profit.
That’s the problem, here’s our solution
Vendor Connect is our core Saas offering. It’s a fully-integrated system that increases the revenue you earn from selling directly to Amazon.
How does work? Well, no-one can argue with the prices and fees set by a giant like Amazon. But troublesome chargeback penalties … we can do something about them.
Vendor Connect is designed by industry experts to automate how your ERP system engages with Amazon. It takes care of functions such as stock and price feed, order management, shipments and invoicing – reducing the manual hours spent on these tasks and also ensuring the most up-to-date standards of compliance.
It’s a double-win: you save time and money spent on selling to Amazon, and eliminate the chargebacks that can be so damaging to your margin.
But what about the revenue that’s already been lost?
A Managed Service
If you’ve been supplying Amazon Vendor Central for a while, you’ll likely have built up a backlog of financial deductions. Many of these can be reclaimed, but it can seem almost impossible to know how, or where to start.
Our full Managed Service works closely with vendors to recover the backlog of lost revenue and optimise future sales.
It begins with a free audit of your Vendor Central account, looking for areas where you are sacrificing revenue unnecessarily. Once we’ve identified these root causes of chargebacks, shortages and price discrepancies we can help you put corrective measures in place to limit future penalties.
But… by building up such a detailed bank of evidence we are also able to dispute many previous penalties, and have those deductions refunded to you, where they belong.
On average, we have successfully recovered 70-75% of shortages and chargebacks from Amazon. Furthermore, we aim to keep our clients within the tight <5% margin of compliance that Amazon demands, ensuring future deductions are practically eliminated.
It’s the best way to get the most profit from the world’s biggest market.
Sign up for a free audit
There’s no downside to having us audit your Vendor Central account. It’s entirely free, with no obligation, and we’ll give you a clear estimate of how much of you can save and recoup.
Sign up for a free audit below and one of our team will get in touch.