Managing Product Distribution on Amazon

Should you switch from an indirect distribution setup to a direct trading relationship with #Amazon? It's tempting to think that cutting out the middleman would boost your sales and profits with the online retailer. Yet most brands that choose this route underestimate the resources it takes to manage Amazon effectively: - Managing day-to-day operations - Negotiating annual terms - Dealing with constant margin requests - Coordinating service providers (agencies, SaaS, etc.) - Reconciling unresolved financial disputes  - ... The truth is: Most SMBs are better off using a distributor instead of becoming a vendor for Amazon themselves. The resource requirements on brands often outweigh the benefits of moving to a direct relationship with Amazon. 𝗕𝘂𝘁 𝘄𝗵𝗮𝘁 𝗶𝗳 𝘆𝗼𝘂'𝗿𝗲 𝗮 𝗹𝗮𝗿𝗴𝗲 𝗺𝘂𝗹𝘁𝗶𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹? Although you may think you have the internal resources to make the switch, I recommend taking one step at a time. Distributors are long-term trading partners. Cutting them off will likely do more harm than good. And although your Vendor Manager wants to list your entire portfolio, I strongly recommend against this approach. ❌ Instead, only transition 20-30% of your listed Amazon assortment. This allows you to understand the real impact of Amazon's price algorithm, identify and fix any process errors leading to chargebacks, and expand profitably over time. Yes, you'll see slower sales growth at first. But you'll not only give your long-time distribution partners a chance to ramp down their business sustainably – you'll also transition to a direct trade relationship in a much more profitable manner. --- Have you switched from using a distributor to becoming a 1P vendor yourself? What was your experience? Let me know in the comments! #amazonvendor #amazonstrategy

Struggling to manage an Amazon Catalog of 1,000+ products? You're not alone, many business owners face this issue. 📊   We helped IPW Industries, a catalog of 10,000+ grow by an annualized $1.3mm in sales in just 90 days earlier this year. 🚀   Here is what I've noticed when supporting larger catalogs—people get caught up in wanting to improve everything, however, they have a limited amount of cash, and no strategy in place to do so.   To create that strategy, start by organizing your ASINs by the parent ASIN. Other relevant metrics will be sessions, orders, and revenue by parent ASIN.   Once you have all parent ASINs organized, you will want to sum your ASINs total sessions, orders, and revenue.   Next, use two simple formulas to get deeper insights into your catalog's performance: 1.       Parent ASIN sales / total sales: a.       Identify sales distribution per ASIN. 2.       Parent ASIN Sessions / Parent ASIN Orders: b.      Identify CVR per ASIN.   From here, you can create a game plan. 📝   Tier out your ASINs based on their sales distribution: - Tier 1: Anything above 5% of sales. - Tier 2: Anything from 1% - 5% of sales. - Tier 3: Anything less than 1% of sales.   Every catalog is different, so you can adjust your definition of tier 1, 2, & 3 to match your catalog.   After you've identified the tiers per ASIN, create a timeline to ensure you're able to efficiently move through the catalog. Start with your tier 1 ASINs.   Focus on driving more traffic to your tier 1 ASINs by analyzing your ad campaigns. See where you can do more—more targets? Larger budgets? New campaigns? 💡 - As a bonus, analyze CTR and test main image & title to see if you can improve them.   For the low CVR tier 1 ASINs, focus on conversion rate optimization through A/B tests of listing images, video, A+, price, etc.   Once you've completed your tier 1s, you can move onto your tier 2s and repeat the process.   With this approach, you'll not only boost your top-performing product sales but also create a sustainable way to manage your entire catalog efficiently. 💼   #AmazonCatalogManagement #Amazon #Ecommerce #digitalmarketing #Strategy

Several brands & manufacturers overlook unauthorized sellers on Amazon. And this is a massive mistake. Here's why (and how you can rectify this): Compromised Product Quality → Unauthorized sellers can distribute counterfeit or low-quality items. Do this instead ↳ Regularly monitor and review seller activity on your listings. ↳ Implement quality control measures and verify seller authenticity. Loss of Pricing Control → Unauthorized sellers often undercut prices, leading to price erosion. Do this instead ↳ Keep a close watch on pricing across all sellers. ↳ Enforce minimum advertised price (MAP) policies to maintain pricing. Inconsistent Product Information → Unauthorized sellers may use inaccurate or outdated product descriptions. Do this instead ↳ Regularly audit and update your product listings for accuracy. ↳ Use Amazon’s Brand Registry to ensure content consistency. Unmanaged Distribution → Products may end up in unauthorized channels, diluting brand value. Do this instead ↳ Track and control where your products are sold. ↳ Restrict distribution to approved channels and partners only. Brand Dilution → Multiple unauthorized sellers can weaken your brand’s market presence. Do this instead ↳ Monitor and manage all listings to prevent unauthorized sales. ↳ Focus on maintaining consistent product quality and service. Neglecting Legal Protections → Misuse of trademarks and IP can lead to legal challenges. Do this instead ↳ Actively enforce your trademark and IP rights on Amazon. ↳ Use Amazon’s Brand Registry for enhanced protection and control. Don’t let negligence hurt your brand’s long-term success. Are you doing anything about unauthorized sellers on Amazon?

Amazon is not in the enforcement game. Brands are responsible for verifying the authenticity of Buy Box competitors. If you’re seeing unauthorized sellers or unknown competitors in your buy box, it’s on you to take action. Here’s how: Step 1: Verify Authenticity The easiest way to do this is to conduct a test buy: If the goods are counterfeit, Amazon will enforce against the seller. Report it, and they’ll take the necessary steps. If the goods are legitimate, the issue isn’t Amazon—it’s your distribution system. Step 2: Investigate Your Distribution When you confirm the goods are authentic, it’s time to figure out how unauthorized sellers are getting access to your products. This requires examining your distribution model: Are your distributors following the rules? Could you be doing more to track inventory? One effective tactic is to implement methods for tracking goods. For example, some brands use invisible ink or unique markings tied to specific distributors. Step 3: Take Action at the Source Sometimes, you’ll need to make hard decisions. If a distributor repeatedly breaks the rules, you may need to cut them off entirely. This is where many brands hesitate, but if you’re unwilling to address the source of the issue, you’ll continue to face problems on Amazon. If you don’t clean up your distribution, you’ll keep running into unauthorized sellers and Buy Box challenges.