Asha Bhalsod of Etopia Consultancy responds to a column from our March issue on whether it is better to be an Amazon Vendor or Seller.
For this piece, Asha took inspiration from an article published in Toy World about Vendor Central vs. Seller Central, or the hybrid model as it is often referred to. “The hybrid model is a concept that has been around for many years but has become a more favourable way of working with Amazon recently,” she explains. “Amazon has notoriously been treated as a second-tier account by many brands, but as its importance grew in the market and the pandemic hit, Amazon could no longer be ignored. Sales and marketing strategies had to evolve to make room for a new way of working, the Amazon way.”
Asha goes on to detail how, with the hybrid model, brands can enjoy the best of both the Vendor and Seller Central worlds, describing exactly how the hybrid model works in terms of Net Pure Product Margin, trading terms and unprofitable (CRAP – cannot return a profit) lines. She also explains why getting the logistics strategy right, and having the right resources in place, are vital factors when adopting such a model.
“Amazon does not acknowledge the hybrid model,” says Asha. “They would rather you did not use it, in all honesty. Seller Central and Vendor Central are two separate teams within Amazon. They are also likely to discourage hybrid selling, because it compromises their ability to control the endto-end customer experience.”
To read Asha’s full article from our June edition, click here.