Very exciting that you’re considering to LAUNCH on SellerCentral.

Below will explain why this strategy makes sense, and how your company will execute.

Recap:

• We experience Amazon VenderCentral to be consistently ignorant of brands that are selling less than $10M/year.
• Your company is fits into that and must take actions into your own hands

PROs:

• The Main Benefit: SellerCentral provides full pricing flexibility. We can update prices daily if we want.
• Assortment Opt-In: We manage the catalog. Amazon becomes a transactional tool for direct sales
• Dropship: Similar to VendorCentral, we can dropship directly to end customers
• Amazon 3PL: For high-volume/low-dollar SKUs we can pay Amazon 3PL to pick/pack/ship on our behalf

CONs:

• Smaller Average Order Value than traditional VendorCentral
• We assume responsibility for Customer Service

Allowances:

• VendorCentral: Allowances deducted from Wholesale/Invoice
• SellerCentral: Allowances deducted from Retail

Assuming $20 Wholesale & $40 Retail:

• Vendor NET is ~$16
• Seller NET is ~$34 (freight/customer-service is Vendor Responsibility)
• (if freight is $10/unit, NET is still dramatically higher)