Are You Affected by Amazon’s Vendor Central Shutdown?
Many vendors are experiencing the blackout and have not received purchase orders
UPDATE May 28th, 2019: Bloomberg has released an article discussing the situation.
It takes up to 120 days to shift from an Amazon wholesale supplier to a marketplace seller… Smaller Amazon vendors should prepare now by learning how to sell on Amazon’s marketplace to make the transition more smoothly, he said.
“If this happens soon and people are not ready for it, they will not be ready during the holidays,” he said. “The people who get ahead of the game are going to thrive.”
On Monday, March 4th, 2019, many vendors (those that have a Vendor Central account) did not receive their regular purchase orders and there is news online that Amazon is shutting off Vendor accounts that are not doing significant volume. You may be seeing this in the news as a “Vendor Blackout.”
Nobody wants to run a business that can be affected by the actions of one large retail partner. Regardless of the short-term outcome, Amazon is clearly pushing to put pressure on Vendors as can also be seen with last years terms negotiations. With that in mind, as we have often recommended, it is more important than ever to diversify not only within Amazon (as a strategy of selling both on Seller and Vendor,) but also to other marketplaces outside of Amazon.
We are confident that there will be a strategy for everyone no matter the outcome from the current “blackout.” We believe in a hybrid approach with Seller and Vendor Central and we have dedicated resources to developing the proper systems for this approach. In any case, there are many advantages to going direct to consumer with Seller Central and we have touted those benefits since we started managing Vendor accounts.
If Amazon does, in fact, suppress some vendors, our advice would be to not skip a beat, assess all options, and take on strengthening your business by diversification of channels.
We have always known that Amazon management is more than content and advertising; it is navigating the rapidly changing environment and staying ahead of the curve. Velocity Sellers is here to manage and guide. That is why our clients are with us: so that you can feel confident in the direction of your business especially when faced with obstacles (and there will always be obstacles.)
It is ALWAYS a good idea to diversify.
Velocity Sellers has experience transitioning countless companies to Seller Central.
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