The Amazon Sales Model Brands are deploying to take control & future proof business

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The world as we know it has changed, and as a result, calls for big changes. Brands must innovate to survive and thrive beyond Covid19.

Now, more than ever, shoppers are going online to source the goods they Brands need the right selling strategy that will drive growth and sustain profitability.

Take Control & Drive Sales, profitably with the Amazon “Hybrid” Sales Model

The Amazon Hybrid model refers to selling goods directly to Amazon to be sold on the platform, known as: first-party Vendor (1P) whilst at the same time selling goods on Amazon via a partner or vendor, known as: third-party Seller (3P).

The Hybrid sales model can be scaled rapidly to meet these challenges. In particular, avoiding delays to orders and shipping and, more importantly, ensuring stock to meet customer demand.

With a hybrid model, Brands can sell part of their SKUs directly to Amazon (1P) and the rest via the marketplace (3P).

Amazon is typically selective about the SKUs that they carry, ensuring they sell the most profitable. That leaves Brands in a position where they are not able to sell other SKUs. However, with a Hybrid 1P/3P model, Brands can gain better control of pricing, realise better margins and proactively control SKU range and selection.

It’s vital to have inventory management with 100% accuracy. Using a Hybrid approach to shipping enables Brands to avoid delays to deliveries.

The Fulfilled by Merchant /Drop-Ship model

To avoid stock-outs, it makes sense to switch to FBM (Fulfilled by Merchant) to ensure customers can continue to order and receive the products they want.

This gives more control to a Brand when it comes to inventory levels and delivery times.  Many brands can be waiting several weeks for Amazon to upload an item.  In the Hybrid Model, you have the option to distribute products via the 3rd party account, and the products you offer via Fulfilled by Merchant (FBM) do not have to be stored by Amazon.

Fulfilled by Luzern

We can also rapidly switch to Fulfilled-By-Luzern to proactively control SKU range and selection. When a customer places an order it can be shipped directly to them from our own warehouses. This has been vital for many of our customers recently, even those that have seen as much as a 50% drop in their 1P orders from Amazon have been able to boost sales using a 3rd party provider like Luzern, to manage their 3P strategy. Once there is stock in warehouse, or at other location, we can integrate directly with your backend systems to fulfill orders.

Conclusion:

Selling on Amazon can be challenging, even for the most established Brands with long standing relationships with Amazon.

With the Hybrid Sales Model, you can ramp up assistance with warehousing, order processing and delivery, ensuring supply, in stock, and ready for sale on Amazon.

About Luzern

Luzern helps Brands navigate the complexities, from the fundamentals to the development and roll-out of complex route-to-market and Hybrid Amazon sales programs. We are the Amazon experts, with proven technology to dramatically grow online revenues for big brands across the globe.

Luzern successfully manages this 3P Hybrid model for leading brands across the globe, ensuring they stay in control of pricing, maintain the direct relationship with their customers, whilst extending their inventory and driving sales of additional product lines beyond 1P.

Talk To Us Today To Find Out More