By Martin Heubel, Commercial Advisor to 1P Amazon Vendors at Consulterce
So what are the risks of moving your Vendor Central account over to 3P?
The answer depends on your location:
US vendors are subject to Amazon’s Standards for Brands (SBSAS) policy:
It’s a core part of Vendor Central’s terms and conditions, allowing Amazon to force manufacturers to offer products exclusively through Amazon 1P.
This leaves brands with suppressed 3P Buy Box offers and the closure of their 3P account when trying to exit the 1P model.
European vendors enjoy more protection. While Amazon has a similar policy (Product Availability Policy for Manufacturers), it’s rarely enforced.
But before you get all excited:
Moving products from Vendor to Seller Central won’t solve your margin and distribution problems:
- Amazon suppresses uncompetitive 3P offers.
- Competition for the Buy Box will continue.
- The lack of a 1P offer may encourage more 3P Sellers to sell your brand on Amazon, accelerating a negative price spiral.
The better way?
- Control your distribution
- Delist unprofitable products
- Differentiate your 1P assortment
Yes, you can use a 3P account as a defensive strategy during vendor negotiations. Just know that Amazon may not be playing along.
For further information and support, contact Martin Heubel here
