Approaching Amazon Vendor Central (vendor system)
Speaking of Amazon VC account, every senior Amazon person has heard some rumors, such as VC tampering with other people's product pages, wantonly selling other people's products, etc., or it has a variety of third-party sellers on Amazon. We envy the operating function authority. For a while, the VC account has become synonymous with Amazon's "black technology" and a profit tool in the hands of service providers, but it has ignored its importance as an Amazon supplier portal.
1. What is an Amazon VC account?
Just as everyone refers to Amazon's third-party seller sales account as SC (Seller Central), the industry is customary to call Amazon's supplier account as VC (Vendor Central), and products sold on the VC account are also called Amazon self-operated products. VC is Amazon's heavyweight supplier system. It is an operational portal created by Amazon since 2009 for manufacturers and distributors with brands. Almost all of Amazon's self-operated (physical) products come from supplier platforms, and VC accounts are platforms and channels for Amazon to purchase goods from manufacturers or distributors.
two. Performance analysis of Amazon VC sellers in recent years
A sudden epidemic in the spring of 2020 brought a huge blow to the cross-border e-commerce industry. The public financial reports of mainstream e-commerce platforms including Amazon and relevant third-party research data show that the number of GMV and sellers on most platforms has increased significantly, and the proportion of e-commerce GMV in the overall retail GMV has also reached a new level.
According to a rough estimate of the data disclosed in the 2020 Amazon Global Market Report, Amazon’s total annual GMV is approximately US$475 billion. Among them, Amazon third-party sellers created US$295 billion of GMV, while Amazon’s self-operated GMV was US$180 billion. In the self-operated business, Amazon’s private brand GMV accounted for 9%, and other categories were below 4%. This shows that VC business occupies an absolute dominant position in the total amount of Amazon's self-operated business. At the same time, the number of VC sellers is far fewer than third-party sellers. GMV accounts for almost 40% of Amazon's total GMV. This is enough to prove the performance of VC sellers in many categories of Amazon. Strong.
three. Introduction to Amazon VC business model
From the perspective of the nature of the business, the VC model is not B2C but pure B2B. Unlike SC sellers, VC sellers do not directly engage in transactions with consumers, but only trade with Amazon as a supplier or wholesaler, so they target different For trade needs, VC business has three different trade modes:
Direct Fulfillment: A dropshipping service. Customers place an order with Amazon. Amazon pushes the order to Vendor through a VC account, and Vendor directly delivers the goods to the customer by express. In the DF mode, Vendor must ensure the normal logistics and transportation of goods, and it is best to distribute the inventory to different warehouses, increase the coverage of the logistics network, and ensure the delivery timeliness of the goods.
Purchase Order: For wholesale business, Amazon places a wholesale order to Vendor's overseas warehouses, and requires Vendor to send the goods to Amazon's designated warehouse within a limited time window. The PO model relies on a mature operation management system and excellent warehouse operation capabilities. , The advantage is that the realization of inventory realization and better product sales conversion faster.
Direct Import: In the import business, Amazon directly applies to the Vendor factory for the import of large quantities of goods, and requires Vendor to ship the goods to the port of delivery within a given delivery period to the carrier arranged by Amazon. The DI model is the core project of the entire VC business, which can greatly reduce the cost of goods circulation between both parties. Especially in the context of the tight shipping industry and rising freight costs, it is a very good way for Vendor to export trade.
With the continuous improvement and development of Amazon's self-operated system, the functions of the VC system have become more and more complete, and the vulnerabilities that have been exploited have been repaired. VC has become more and more distant from the "black technology" and has become a real supplier operation. As Amazon's self-operated Vendor, it is the most important thing to make solid products under the supplier system and carry out in-depth cooperation with the Amazon platform to realize brand value.