Episode #4 - Dan Meszaros How to make freinds with Amazon Vendor employees! Info on Vendor Direct Fulfillment Program... Keep Amazon from lowering your Buy Box price. Wayfair & more!
Aug 25, 2023
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Join us as e-commerce expert Dan Meszaros discusses strategies for building relationships with Amazon Vendor employees. Topics include the Vendor Direct Fulfillment Program, securing Amazon prices, and negotiating contracts.
Building genuine human connections with Amazon Vendor employees is crucial for mutual success.
Having a strong pricing strategy and understanding profitability impact is vital to succeed on Amazon.
Deep dives
Experience in E-commerce and Multiple Platforms
Dan has extensive experience in e-commerce, with 14 years in the industry. He has built a nine-figure FBA private label account, a nine-figure Vendor Central account, and achieved eight figures on Shopify. He emphasizes the breadth of his e-commerce experience and mentions his familiarity with various platforms, including Amazon, but also highlights that his focus will remain on Amazon-specific topics in the podcast.
Transition to Vendor Central and Direct Fulfillment
Dan explains how his company moved from Seller Central to Vendor Central. They transitioned their entire catalog, including mattresses, to Vendor Central for better cost-efficiency due to shipping large and heavy products. He mentions that they had favorable terms and experienced growth in both Seller Central and Vendor Central simultaneously. Dan also discusses their recent move to a Direct Fulfillment program, where they drop-ship products for a furniture brand, providing details on how they reached an agreement with Amazon for this type of partnership.
Negotiating with Amazon and Focusing on Net PPM
Dan shares insights on negotiating with Amazon and advises focusing on the vendor manager's goals to get favorable outcomes. Understanding the vendor manager's metrics, such as net PPM (net profit per merchant), is key. He recommends asking the vendor manager how they are measured and how to make them look good to their superiors. Dan emphasizes that profitability plays a significant role in negotiations, and having a strong pricing strategy is crucial to success on Amazon. He suggests setting a minimum profit floor and determining the maximum price that the market can bear when distributing products across channels.
Challenges and Pay-to-Play Advertising on Amazon
Dan acknowledges the increasing challenge of pay-to-play advertising on Amazon and the rise of ad spaces on search pages. He highlights the importance of having a robust pricing strategy and understanding the profitability impact of advertising spend. He also discusses the competitive landscape and changes in Amazon's focus on profitability under new leadership. Dan concludes by recommending that sellers prioritize profitability and carefully analyze their pricing and advertising strategies to navigate this rapidly evolving market.
Join us in this intriguing episode as Dan Meszaros, an expert in the e-commerce landscape, delves deep into the strategies for fostering strong relationships with Amazon Vendor employees. As you'll discover, it's not just about business but about genuine human connections that pave the way for mutual success.
In this episode, you'll learn about:
The Amazon Vendor Direct Fulfillment Program
Securing Your Amazon Price
Negotiating contracts and NET PPM
Tune in, and let's journey through the Amazon jungle with Dan! ππποΈ