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<!DOCTYPE html>
<html lang="en">
<head>
<meta charset="UTF-8">
<title>Title</title>
</head>
<body>
<table border="1" cellspacing="0" cellpadding="10">
<tbody>
<tr>
<td></td>
<td align="center"><b>Amazon 1</b><b>st</b><b> Party </b><b>Vendor Central</b></td>
<td align="center"><b>Amazon 3</b><b>rd</b><b> Party </b><b>Seller Central </b></td>
<td align="center"><b>Impact</b></td>
</tr>
<tr>
<td align="center"><b>Inventory & Pricing</b></td>
<td><span style="font-weight: 400;">Amazon </span><span style="font-weight: 400;">sets price and</span><span style="font-weight: 400;"> issues Purchase Orders for wholesale items based on sales, demand, and category considerations. </span><span style="font-weight: 400;">Vendors fill purchase orders and must ensure products are available for purchase on Amazon.</span></td>
<td><span style="font-weight: 400;">Seller manages inventory and sets price.</span></td>
<td><span style="font-weight: 400;">There is potential for a significant impact on manufacturing, demand planning and inventory management for 1P vendors, which are traditionally not set up for real-time inventory.</span></td>
</tr>
<tr>
<td align="center"><b>Pricing & Fees</b></td>
<td><span style="font-weight: 400;">4-10% COOP fees for manufacturers</span></td>
<td><span style="font-weight: 400;">15% referral fee paid by seller to Amazon</span></td>
<td><span style="font-weight: 400;">Any fees paid to Amazon eats into revenue. Price point matters, especially with fulfillment costs in the mix.</span></td>
</tr>
<tr>
<td align="center"><b>Fulfillment</b></td>
<td><span style="font-weight: 400;">Amazon houses, packs and ships inventory.</span>
<span style="font-weight: 400;">Manufacturers receive chargebacks for incorrect labels or packaging</span></td>
<td><span style="font-weight: 400;">Fulfilled By Amazon brands need to pay fees to store product and fulfill orders.</span>
<span style="font-weight: 400;">Drop shipping requires brands to stock, pack, and ship themselves, avoiding fees but shouldering the costs themselves.</span></td>
<td><span style="font-weight: 400;">Most large brands don’t have drop-shipping capabilities due to volume issues. It can cost millions to adapt, but it will be worth it as online shopping adoption rates skyrocket.</span></td>
</tr>
<tr>
<td align="center"><b>Customer Service</b></td>
<td><span style="font-weight: 400;">Amazon is responsible for handling shipping or customer service issues.</span></td>
<td><span style="font-weight: 400;">All issues managed by individual sellers. They have the opportunity to communicate directly shoppers</span></td>
<td><span style="font-weight: 400;">The email capabilities on Seller Central are great for promotions and driving loyalty. There are penalties for not responding quickly to customer service issues (including getting removed from Amazon)</span></td>
</tr>
<tr>
<td align="center"><b>Advertising</b></td>
<td><span style="font-weight: 400;">Access to all Amazon Advertising Tools.</span></td>
<td><span style="font-weight: 400;">Access to Advertising tools is limited to Sponsored Product and Sponsored Brand ads.</span></td>
<td><span style="font-weight: 400;">Marketing products and brands can be a huge effort. Smart strategy, fluency in the platforms, and a team of content creators is a must-have for selling on Amazon.</span></td>
</tr>
</tbody>
</table>
</body>
</html>