If you are not familiar with Amazon’s systems, having someone who is definitely familiar with them helps. This is especially true for small vendors. However, senior Amazon executives have suggested that they will want to deal directly with major manufacturers, no different than the large brick-and-mortar retailers do.

All sellers that deal with large retailers benefit from expertise that fills the gap between the interests and capabilities of each partner. It is a return on time and investment issue, where the seller needs the best terms and the retailer wants the most from the relationship. Both the seller and the retailer are well-served by this intermediary expertise.

Amazon Marketplace has truly become a “siren” calling third-party sellers. The lure is quickly increasing online sales via a turnkey platform. The danger is drowning in a sea of anonymity.

Amazon offers amazing turn key services for third-party sellers that are very attractive for those without a platform or major web presence. The tremendous growth in Amazon web traffic and delivery capabilities are services that few third-party sellers can match themselves.

However, with millions of other sellers now offering millions of products on the Marketplace, there is no guarantee of sales or being discovered. If there’s one area where third-party sellers can benefit it is how to market and standout from the crowd on Marketplace. Mr. Thompson has it right: “[success] requires constant nurturing by updating its marketing.”

Third-party sellers also need assistance regarding how to protect their brands on Amazon Marketplace, but that’s worthy of a discussion topic on another day.

There are two ways to approach selling on Amazon; as a reseller of existing products and brands or as a seller of your own brand. Each of these are different operating models with unique challenges. As a reseller, in order to be successful, you need to have some sort of supply chain advantage. Many resellers on the platform are either distributors or partners with distributors. The main issues resellers face is the fight for the buy box against the many other resellers who are carrying the same exact product as they are. If you have consistently low prices because of your supply chain advantage and can maintain a great seller performance metric, you will win the buy box a good portion of the time. But can you make a profit? That is the question. Resellers without a supply chain advantage play the online arbitrage game and their business is getting more difficult by the day. These sellers will also sell on eBay, Walmart Marketplace, Jet and a host of others. But Amazon makes up more… Read more »

Marketing and advertising are important for any business selling a product. The Internet is no different, just the methods. It’s smart for third-party sellers to invest in better marketing and positioning because they only have a few seconds to attract a customer to their products online. However, the challenges remain the same. Today we are bombarded with endless TV commercials and radio ads, most that are completely ineffective. Search optimization is becoming just as challenging in terms of discovering what we hope will be the best way to lure customers. The goal is always to have your company or product stand out. The technology exists for third-party e-commerce sellers to reach customers, but it must also have the right creative that will get the attention of the internet shopper.

Amazon Marketplace sellers must remember that they are working with — and against — Amazon, or, rather, Amazon is working with and against them. The Marketplace sellers need all the help they can get to do this balancing act.

As a provider of such third-party services for brands selling on Amazon, I can vouch for sustained interest in our services as brands find less and less direct support from Amazon themselves. As other commenters pointed out, while Amazon wants to deal directly with the brand or manufacturer, they are increasingly automating services for sellers and creating barriers for having a dialogue with Amazon directly.

This is where third party providers can step in and help with a broad and deep understanding of the platform. If Amazon continues to cut costs and services to marketplace sellers, Amazon needs third party providers as much as the brands do.

However, after 16 years as an Amazon Solution Provider for manufacturers, distributors, and merchants, we find that in all cases unless the company has a staff that is 100% focused on Amazon.com, everyone needs help. In practice, Amazon does not normally let you know when they’re going to make a right turn or a left turn. They simply do it. We think that having connections into people that work inside of Amazon, is a big plus. This is why we have nurtured our relationship with Amazon for a very long time, and can find ways to get things done through these relationships. We encourage all sellers who have a desire to work with Amazon to find a resource that actually has the practical experience to guide them. It is not that it’s necessary, it’s vital. And VET Them. No matter what you read, no matter what people tell you, you can find a place to work with Amazon, but leverage what they can provide to you in the best possible way for YOUR company. As… Read more »