How to Move From Amazon Vendor Central (1PL) to Amazon Seller Central (3PL)
Need help moving from Amazon Vendor Central to Amazon Seller Central. We can help. Palmetto Digital Marketing Group recently put together an amazon strategy for a world class potential client who wanted to migrate from Amazon Vendor Central to Amazon Seller Central. We thought we would outline these strategies in a news post so we can be in a position to help additional retailers or merchants who also want to make the migration.
AMAZON PROGRAMS DEFINED:
Amazon Vendor Central (1PL)
1PL: Sell first-party, wholesale, directly to Amazon Retail, using the Vendor Central interface.
Amazon Seller Central (3PL)
3PL: Sell third-party to consumers through the Amazon marketplace, using the Seller Central interface (whether the brand sets up its own 3P seller account, or works with partner 3P sellers focused on the brand).
WHAT’S THE DIFFERENCE?
Amazon Vendor Central is Amazon’s more typical reseller structure. Amazon buys your products, sells them at the prices they feel are appropriate, and pays you back. Vendor Central is invite-only, and it’s generally for larger manufacturers and well-known brands.
Amazon Seller Central allows third-party sellers to list products on Amazon’s site. Smart sellers use Fulfilled by Amazon (FBA), which PDMG recommends to all of our clients. FBA also allows access Amazon Prime shipping. Any merchant or seller can use Seller Central. Sellers retain full control of their product listings and pricing with Seller Central.
Amazon 1PL vs 3PL (Pros & Cons)
WHO, WHAT & HOW: SETTING THE STRATEGY TO MIGRATE FROM 1PL TO 3PL
WHO: Palmetto Digital Marketing Group would like to offer its technical expertise to migrate your company from Vendor Central to Seller Central. We have direct experience in migrating merchants from one platform to another. A key benefit of the migration process allows merchants to take control of their brands. A secondary benefit, one that is equally important, allows the merchant to command greater margin dollars for every unit sold.
WHAT: As a "potential" vendor and marketing partner, Palmetto Digital Marketing Group recommends the following strategic initiatives to ensure Amazon Dominance:
1.Migration of Products from 1PL to 3PL
2.Once products have been migrated to 3PL, we recommend the products be set up on Amazon FBA and sent to Amazon Fulfillment Centers.
Once set up on Amazon FBA, the merchant is: (1) Amazon “Prime” eligible and (2) Positioned to win the Amazon Buy Box. (Note: it’s been reported that 80-90% of all Amazon order transactions are from products that originated in the Amazon Buy Box.)
3.Palmetto Digital Marketing Group can assist your company with general program management
4.Palmetto Digital Marketing Group can help your company enforce brand policing
HOW: Palmetto Digital Marketing Group would like to take a measured approach in facilitating the transition from 1PL to 3PL. We recommend starting with 50 to 100 of your best-selling products. After the initial transition we recommend adding more products in increments.
MIGRATION PROCESS PHASE 1 (PRODUCT SET UP)
1.Keep current ASIN’s with ASIN history
2.Full product set-up of 50 skus
3.Bulk category Amazon spreadsheet population
4.Spreadsheet editing, proofing & uploading
5.Product title optimization
6.Product description optimization (copy/bullets)
7.Resolve any Amazon listing errors
MIGRATION PROCESS PHASE 2 (PRODUCT SET UP ON FBA)
1.Wait 1 to 2 weeks for newly uploaded products to register in Amazon
2.Complete FBA set up, facilitate FBA shipments
3.Make your top selling items “Prime” eligible
PHASE 3 (ON-GOING AMAZON PROGRAM MANAGEMENT)
1.Product marketing/advertising set up and management
2.Handle FBA Inventory management
3.Manage customer review solicitation
4.Handle all Amazon selling/listing disputes with Amazon directly
5.Amazon escalation management
6.Consider more aggressive pricing on “Prime” Day to win the Buy Box
Why Does Palmetto Digital Marketing Group Recommend Moving Away from Amazon Vendor Central?
Amazon Vendor Central is invite-only, and it’s generally for larger manufacturers and well-known brands.
It makes the Amazon Vendor Central division into a single controlled Amazon distributor of your line of products once you sell them to Amazon.
AVC (Amazon Vendor Central) works out a low purchase price from you promising to purchase large quantities from you at this low price. Then once AVC has your products they completely control the pricing, marketing, sponsoring etc. of your product line. This along with using the AVC pricing algorithm to always have the lowest price will always give AVC the Buy Box. So if you or any other of your resellers want to sell that line of product on Amazon.com your sales will be very small because you will never get the all-important “BUY BOX” on Amazon.com.
Let PDMG help you make more money on Amazon.com by making you more INDEPENDENT of the Amazon schemes. Not only can we move you onto a more profitable Amazon selling platform, but we can also migrate your Amazon ecommerce store onto a 3rd party independent platform! Contact Us today.