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Amazon bids goodbye to 1P vendors

Monday fun fact: There’s nothing wrong with sticking to traditional marketing amid all tech-powered alternatives. However, you need to add new ingredients to your traditional tactics to really want to stand out.

But just in case you decide to embrace the more futuristic approach of using AI, today’s issue can be your guide in executing flawless campaigns. 

  • Goodbye wholesale vendors? ❤️‍🩹
  • Selling with ZERO hidden fees 0️⃣
  • AI-powered holiday marketing ⚡

POST OF THE WEEK

AMAZON NEWS

We don’t like being a bearer of not-so-good news, but here’s something you need to know: Amazon will stop sourcing products from select wholesale vendors. 🚫

In a report by Retail Brew, brands under Amazon’s 1P invite-only program have received termination notices that’ll take effect on November 9. The notices indicate that this is part of a strategic realignment to optimize operations and routinely review its product offerings.

🕳️ The Vendor void 

A little refresher: Vendor Central is an invite-only program aimed at brands that sell to Amazon at wholesale prices. The termination will affect brands making less than $1 million to $5 million in annual sales on Vendor Central.

  • Affected vendors and brands are understandably overwhelmed. The news came on short notice, with the holiday season a few weeks away!
  • Amazon suggests switching to third-party (3P) seller models on Amazon’s marketplace. This way, brands can still access Amazon’s customer base. 🔀
  • Wholesale selling through a third-party agency, like Pattern or Spreetail, could be an alternative.
  • Petmate, an Amazon Vendor, advises affected brands to get agency support.

The problem?

Pivoting from being a 1P vendor to a 3P seller will be a challenge. For starters, it’ll be challenging for the brands’ internal teams to adjust and manage a new selling flow.

Experts say a hybrid approach will be ideal to test if 3P selling works for the affected brands. Still, this is a big hurdle, especially for wholesale vendors who already polished their holiday selling plans. 💔

TOGETHER WITH WALMART MARKETPLACE

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BITES OF THE WEEK

  • QR Code Crimes: Warn your customers of these QR code scams that may endanger their online security!
  • What to Sell: Here are some trendy products that can secure your profitability this peak season.
  • Asian Dominance: TikTok has been—and continues to be—a hit in the Asian ecommerce market, especially in the Philippines.
  • Strong Alliance: Seller Alliance promises not only expert selling advice but also unwavering support for your growth.

TECH MARKETING

How to leverage AI to boost your BFCM campaigns

According to Gartner, 30% of marketing messages from large companies will be AI-generated by 2025. Hence, adopting the same approach can be a game-changer in your branding and marketing strategy, especially as you gear up for BFCM this year.

🤖 Zappi shared some helpful tips on how to integrate AI into your branding and marketing effectively:

  • Personalize customer experiences. Use AI to analyze data and offer hyper-personalized product recommendations. This way, shoppers feel your brand understands their needs.
  • Support positive brand interactions. For instance, add AI chatbots to quickly respond to customers and add a personal touch to every interaction.
  • Automate basic tasks. Free up your time by automating repetitive tasks, like inventory management and customer follow-ups. This way, you can have more time for creative holiday campaigns.
  • Enhance the design process. Use AI-generated image tools to test holiday-themed visuals or color schemes to ensure your brand stands out.
  • Create immersive brand experiences. Offer virtual try-ons or interactive ads to give customers a hands-on experience of your products.
  • Create content faster. AI tools can help you quickly draft holiday posts, ads, and emails while keeping them aligned with your brand’s tone and style. 
  • Monitor brand sentiment. Stay updated on customer feedback and keep an eye on trends that could boost your holiday sales.
  • Analyze and improve performance. Track customer responses to holiday promotions to see which offers resonate best.

🎉 Setting up for success

The future of AI in branding looks exciting. Needless to say, combining AI with human creativity can streamline your processes and help you connect with customers on a deeper level.

So, are you planning on spicing up your holiday campaigns with AI?

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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