Amazon just dropped a huge announcement: they’re ending Vendor Central accounts for many smaller wholesale vendors starting November 9, 2024. For brands that have counted on Amazon as a primary sales channel, this news is shaking things up right before the holiday season. 

Amazon is phasing out relationships with smaller vendors who sell under $5-10 million annually on the platform. These brands used to sell directly to Amazon in bulk, with Amazon setting prices and handling logistics. But now, if they want to keep selling, they’ll have to switch to Seller Central, where they’ll sell as third-party sellers and manage their listings and customer service themselves.

Amazon’s goal? Streamline its resources by focusing on bigger suppliers and encouraging smaller brands to move to a more self-managed Seller Central setup. For the brands affected, this switch means a huge shift in how they operate on Amazon.

How This Affects You

The timing here couldn’t be worse for brands that rely on Amazon to reach holiday shoppers. Switching to Seller Central means these brands will now need to take charge of setting their prices, managing inventory, and handling customer service directly—tasks that Amazon previously handled. While there’s an upside (think: control over pricing and higher profit potential), the switch comes with a learning curve and new costs.

Many brands will now have to choose between two fulfillment methods:

1. Fulfillment by Amazon (FBA): Amazon will handle storage, shipping, and returns, but it comes with fees.
2. Fulfillment by Merchant (FBM): Brands manage shipping themselves, which can save on fees but requires a solid logistics setup.

For brands who aren’t ready to dive into Seller Central, finding a trusted distributor could be a temporary solution. At Digital Position, we offer a full-service solution that will take care of everything you need from Advertising to Inventory Management to SEO and creative. If this Vendor Central issue applies to you, let us know and we can get you ready for this big change quickly! 

Next Steps for Moving Forward

If your brand is impacted, here’s what to do ASAP:

• Get Started on Seller Central: Register your account and protect your brand with Amazon’s Brand Registry to safeguard your listings.
• Optimize Product Listings: Update descriptions, add high-quality images, and use competitive pricing to stand out.
• Choose a Fulfillment Method: Decide whether FBA or FBM works better for your inventory, budget, and logistics capabilities.
• Evaluate Your Options: If Seller Central doesn’t seem like the right fit, explore partnering with a distributor or consider third-party solutions.

We know this shift might feel overwhelming, but it could also open new opportunities for growth and brand control on Amazon’s platform. If you’re affected and need support, reach out to us—we’re here to guide you through the transition and make sure you’re set up for success on Amazon. Let’s talk about a strategy that works best for your brand’s needs!