At Zoplenti, we reimagined what an Amazon partner looks like.
And as a result of that, we often assist our partners in transitioning from their current setup to working with us… getting Amazon handled, end to end.
The transitioning process can be concerning. Especially if you’re used to working with multiple sellers and hedging your bets, it’s easy to worry about sales dropping, stockouts, or other issues.
But the reality is, it’s easy to avoid any problems if you follow a proven plan – the same plan we have been using successfully to onboard our exclusive partners without any bumps in the road.
Here’s how it works.
Fewer sellers don’t mean fewer sales.
The biggest fear brands have is that removing sellers means dropping revenue.
But that’s not how Amazon works. As it’s covered in depth elsewhere sellers rotate through the same Buy Box, on the same listings; they don’t bring more sales.
So as sellers stop selling your products, a committed partner simply captures more of the Buy Box, until it has it all.
And once sales are consolidated, growth accelerates.
The bottom line is, having more sellers doesn’t bring any more sales, so reducing them doesn’t by itself cause a sales dip. That can only happen if the transition is done badly, and it has nothing to do with the number of sellers in itself.
Getting control of distribution.
A crucial, but tricky step into establishing control over your Amazon presence is to stop unauthorized sellers from getting your products.
If your brand sells directly to retailers, this is usually easy. But if you work with a wider distribution network, it can be harder, if not impossible, to stop unauthorized Amazon sellers from getting access to your stock.
Usually, your distributor partners can exercise control over who they sell to, on request. With very wide or scattered distribution, sometimes unauthorized sellers can still pop up in time or be impossible to limit in the first place.
If this becomes a problem, one possible solution is Amazon’s Transparency program. This program requires each unit to be labeled with unique codes, which only you as the brand owner can generate and provide your sellers with.
There are other options, as well. At Zoplenti, we support our partners in protecting their hard earned control over Amazon, in any way we can.
Ultimately, getting control of your distribution might take some work, and it can be challenging depending on your current distribution setup.
The good news? It’s pretty much the only step of the process that requires work on your side.
The rest is covered by Zoplenti.
Avoiding stockouts with buffering.
When it comes to transitioning your Amazon setup to an exclusive partner, the only real risk is your products going out of stock.
It can take a few weeks for your products to get from your warehouse to ours and then to FBA. So, if we were to wait for your current sellers to run out of stock before placing our first order, stockouts would be inevitable.
But of course, we don’t.
So how do we ensure your products don’t go out of stock during the transition?
As soon as exclusivity terms are agreed on, we map your catalog, existing sellers and their inventory, as well as demand.
Generally, the best solution for existing stock is letting sellers run out. This avoids buybacks or unwarranted damage to old partners. Mapping this out allows us to get a clear idea of when the current stock is going to run out.
At this point, we place a buffer PO for the SKUs we plan to keep in your Amazon catalog. This PO includes enough stock to ensure there are no stockouts. The sales velocity of this stock acts as the canary in the coalmine for the existing stock running out.
In time, we monitor the remaining stock and the share of the Buy Box our buffer stock. When the time comes, we place a larger, “real” PO that matches our standard order schedule (60 days supply on hand at all times), timed to arrive at FBA around the same time as we get exclusive Buy Box control.
And there it is: a smooth, seamless transition.
Zoplenti’s three step transition process.
At Zoplenti we have this down to a science.
When we onboard a brand as their new key Amazon partner, we consider the transition as a three step process. Each step makes sure all ducks are in a row for the next one.
The first phase is preparation, setting the foundation.
This is when terms are agreed upon, you get control over distribution, and we take care of technical details. We get clarity on our mutual goals and on what the plan is to get the transition done smoothly.
The second phase is consolidation, establishing control.
As sellers run out, we take more and more control over the Buy Box, closely monitoring what happens. In the meantime, we prepare for what comes after, working out our short, medium, and long term plan.
The third phase is growth, for the long term.
Once we have full control, we align catalog, marketing, and operations… and execute the aggressive growth strategy that was impossible before.
At Zoplenti, we’ve refined exclusivity into a framework for growth. We handle Amazon end to end, and that includes making the transition seamless. So you don’t lose sleep, sales, or customers along the way.
