CHICAGO, March 20, 2019 — Amazon is quietly instituting policy changes that will have a large impact on many companies who have come to rely on the e-commerce site as a key source – and for some, the only source – of retail sales. Right now, thousands of vendors are not receiving purchase orders, creating havoc and panic among businesses across the landscape.
“Over the last two weeks, Amazon has cut off in-network and dropship purchase orders for vendors classified as VSP, the Vendor Success Program,” says Rohan Thrambahalli, founder of The Upstart Group, a strategic marketing and technology company focused on helping businesses succeed on Amazon.com and other e-commerce platforms. Thrambahalli adds, “We believe these drastic changes are being made to ensure Amazon protects their customer experience. Too many customers have been receiving damaged or counterfeit goods, or have had a poor customer service experience. Amazon is protecting their brand and their customers.”
As a result of these changes, Amazon will become very selective in who they bring onboard as a retail vendor. According to Thrambahalli, “We think that vendors who Amazon deems as ‘not strategic’ will need to be self-sufficient in operating on Amazon’s Vendor Central Platform.” Vendors who are self-sufficient in pick-pack-ship, inventory management, customer service and billing, will be able to weather the changes. But they’ll only receive payment when a product is actually sold, and this could have a significant impact on their business. Those used to shipping an order, invoicing Amazon and getting paid within 30 days will have to adapt to a new model.
So what are the alternatives? If you’re a Direct Vendor with Amazon, waiting to take action could have a negative impact on your business. Chances are, you won’t hear anything directly from Amazon, so consider partnering with a knowledgeable, experienced Amazon player such as The Upstart Group to help navigate the new environment and minimize the threat to your business. Disruption creates opportunity, and this is a chance to move your business ahead while competitors sit on the sidelines.
The Upstart Group is a sales consulting group based in Chicago, Ill., with offices in Seattle, Wash., Dubai, UAE, and Shanghai, China. Their focus is helping businesses succeed in the global e-commerce landscape. www.upstartusa.com
For more information, contact:
Objective Strategic Marketing
SOURCE The Upstart Group