What is Amazon Vendor Express?
Amazon Vendor Express
Amazon Vendor Express is really great! You’ll sell your products and reach millions of customers. How? You sell directly to Amazon; Amazon buys your products and takes care of the rest. “The rest” means everything, beginning with shipping from the ad to customer service, and of course returns processing. This is Amazon Vendor Express, a truly helpful service for sellers, considering how much time and personnel it saves.
Vendor Express Germany
In America, Amazon offered its vendors the Vendor Express at the beginning of the year. Now the vendors at Amazon in Germany also enjoy Vendor Express. Participation in the Amazon Vendor Express Germany is free. All you need to do is register for Vendor Express. Unlike the Vendor Central. You have to be invited to the Vendor Central and there are even more options here than with the Amazon Vendor Express. Nevertheless, the seller or manufacturer can benefit.
For small businesses / start-ups
Amazon Vendor Express is conceived for small businesses like startups with products new to the market, or “new-to-market” products. These businesses are usually small and cannot yet qualify for Vendor Central. And so Amazon Vendor Express offers another way of collaborating with Amazon; without Vendor Express these small businesses would have no chance to collaborate. But a number of products cannot be included in Amazon Vendor Express, including dangerous goods, heavy products (over 10 kg), adult products, large/bulky items, and all products costing over $500. This service helps to support a small business and allow it to grow in peace.
What does Vendor Express bring to you?
Participation costs nothing. Amazon takes care of warehousing and order processing for you. An Amazon algorithm automatically calculates the correct price for your product, making it competitive. Your product is included in the Amazon catalog and is displayed in product searches. Amazon Prime customers get free 2-day shipping. Shipping is free for orders over 25€. 24-hour customer service is available, as well as returns management. Other advantages include the Amazon marketing program, like Best Sellers, buy X and get Y, recommendations of “Customers who bought this item also bought…”, and much more.
Amazon says that getting started is easy…
First you’ll need a Business account; there you’ll add an item you want to sell. It’s entirely up to you which items you wish to sell on Amazon. As soon as you decide what to sell, Amazon asks you for the EAN number. Now Amazon checks to see whether it already offers this item. If Amazon finds it, you are asked for the details and price. In most cases Amazon then places an order.
If you have a product that is not yet offered on Amazon, Amazon expects you to send a few free units to the shipping center. Then, customer demand is determined through the website. If demand is high enough, Amazon takes an interest in it, asks for additional units, and pays for these immediately. You receive your payment within 60 days, starting from the day Amazon receives your invoice. The samples are not paid for. You can consider it a success for yourself if Amazon accepts your product as a new offering.
How is Vendor Central different?
A big difference is in participation itself – you must be invited to take part in Vendor Central. Participation is free for all manufacturers and sellers. This makes it easier for small businesses and start-ups to become Amazon suppliers.
Another difference is that A+ Content is not available to Vendor Express participants. The missing A+ Content reaches several brand manufacturers who don’t register with Vendor Express. You see, A+ Content offers a competitive advantage; it includes the ability to add more images and to employ expanded product text, e.g. step-by-step instructions. Also, methods of comparison – Cross Selling Tableaus – can be added. It has been shown that A+ Content increases both sales and customers’ sense of connection to the brand. So, brand manufacturers would rather wait for their invitation than register with Vendor Express.
In America there is already “direct fulfillment,” but not yet in Germany. But there is a difference here. The seller sells their products on Amazon, unlike with Vendor Express. The seller doesn’t deliver their products via Amazon, instead keeping the products in their own warehouse. If someone orders one of their products, the seller receives a message and a free shipping label from Amazon. The seller must then ship the item on their own. This method has its advantages for the manufacturer or seller.
What advantages does Vendor Express offer?
The advantages of Vendor Express for manufacturers and sellers should not be underestimated. You are delivering to Amazon, so it’s logical that Amazon takes a great interest in making sure the product actually sells. For this Amazon gives the product the best possible ranking and places it as high up as possible, [in search results?] thus increasing the conversion rate and sales.
On the other hand, participating in Vendor Express gives manufacturers the ability to offer their customers the Amazon Prime service. In this way manufacturers can broaden their offerings to include a much in-demand service. Many customer gladly use this service and factor it into their buying decisions.
Sellers can increase their customers’ trust as well. On the product pages of Vendor Express and Central, participants are designated with the marking “Sold and shipped by Amazon”. This creates trust in your customers, since they know Amazon (a large company) better than a seller they haven’t dealt with.
The “Direct Fulfillment” service previously mentioned is not yet active in Germany but is coming soon. Small businesses often fail with the Central program, trying to handle logistics and strict delivery requirements. A small and/or very new business does not yet have the logistics infrastructure needed. Thanks to “Direct Fulfillment” new retailers can nonetheless offer the Amazon service and grow steadily. Manufacturers handling their own shipping gives them the ability to pack individual parcels for customers. In addition, manufacturers can add advertising material and flyers to packages, thus strengthening the connection between customers and their brand.
Amazon promises profits through Vendor Express. Through this program Amazon buys your inventory directly, assumes shipping costs, marketing, and customer service, and processes returns. Vendor Express gives you the ability to concentrate fully on production.
Does your business need Vendor Express from Amazon?
Answer the following questions to learn whether your business would profit from the program: Should Amazon sell my products? Should Amazon take care of shipping and customer service for me? Should Amazon take over customer management and returns processing? Should my customers have less-expensive shipping options when shopping on Amazon? Should Amazon calculate a competitive price for my products using their algorithm? If you answered “yes” to these questions, then Vendor Express is the right choice for you and your business.
Amazon Vendor Express advantages at a glance
- No annual fee for registration or continued participation in the program
- Products are displayed to customers with “Sold by Amazon”
- Free shipping from your warehouse to Amazon
- Free inventory warehousing and order processing
- Products qualify for Amazon Prime, and free shipping to customers with a minimum order total
- Access to Amazon Marketing Services