Become an Amazon Vendor with Vendor Express
Amazon has another platform available for sellers looking to become an Amazon Vendor. The Amazon Vendor Express program is an opt-in program that sellers can utilize to become an Amazon vendor without having to go through the formal invitation process of the Vendor program. This can be a great transition for Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) sellers to become an Amazon Vendor with Vendor Express.
What is Amazon Vendor Express?
Vendor Express advertises this program saying “You sell us your products and we take care of the rest – from promoting and shipping to customer service and returns.” It’s not quite as simple as that, but gives a good overview of the program. While Vendor Express can lead to purchase orders from Amazon for your products, it primarily serves a drop shipping function for Amazon. As part of the initial application to the Vendor Express program you need to “donate” or provide free samples of inventory to Amazon to test the market demand for your product. During this trial period you receive no money from Amazon and the inventory is essentially an investment into becoming a vendor. If the product does not sell, or sells slowly and you do not get accepted in vendor express you are out the money for the product.
Amazon Vendor Express makes your products eligible for free two-day shipping for prime members and free shipping over the order threshold for non-prime members. Amazon will handle the shipping if the product is already in stock at a distribution center or will pay you for the two-day shipping if the product is leaving from your warehouse.
The Benefits of Vendor Express
The vendor express program does have a few benefits to sellers. The primary benefit is skipping the invitation process to become a vendor. Opting-in to the vendor program gives you a better opportunity to get your product picked up by Amazon on a long-term basis. If your product sells well, you will continue to receive purchase orders form Amazon and possibly be asked by Amazon to be a vendor for other products you may sell. The free two-day shipping from Amazon is also a huge selling point for your product – particularly if you are currently using the FBM program. From working with our clients, we have been able to see the difference that two-day shipping makes in conversion rates and, more importantly, product sales.
Another great benefit is selling with the Amazon branding on your product. This product will be reflected as “Shipped from and Sold by Amazon.com” on your product listing. Many customers look for this on listings as a sign of product quality. Customers believe that Amazon will only sell high quality products and will be more likely to purchase your product. Vendor Express sellers also receive access to Amazon Marketing Services (AMS). This interface can be used to run sponsored ads, product detail page ads and, our favorite, banner ads. These powerful marketing tools can give you the ability to increase your visibility dramatically.
Amazon Vendor Express can be a good solution to sellers looking to become vendors to Amazon. Acceptance into the program is not guaranteed, however it is much easier than getting into the full time Amazon Vendor Program. Being a vendor for Amazon does come with distinct disadvantages that we will cover in future posts.
Contact AMZ Advisers to learn more about growing your Amazon presence