Finding Profitability from Amazon 1P Fulfillment

Finding Profitability from Amazon 1P Fulfillment

An emerging CPG came to us to be their complete 1P fulfillment partner for unique, brand-sp barcoded license plate labels using specialized software.

An emerging CPG that creates fantastic all-natural fitness drinks found that their sales growth made fulfilling their orders through 1P too much for them to handle, with the disadvantages outweighing the benefits of doing it themselves. 

Delays can be costly if a brand’s 1P strategy isn’t seamless. With a unique 1P fulfillment strategy combined with unique branding & labeling requirements, and inconsistent sales patterns, the brand needed an experienced Vendor Central fulfillment partner. 

Having an experienced account manager and high-touch fulfillment services that could quickly integrate with their specialized processes was crucial to remaining profitable through Vendor Central.

The Problem: Super-Close PO Deadline

With their PO due-by date fast approaching and the inability to fulfill their Vendor Central PO with their current capabilities, they needed a Vendor Central account management team with a custom, high-touch warehouse that could meet their highly specialized brand and labeling requirements while meeting Vendor Central’s standards.

The Problem: Ultra-High Touch Integration

The CPG was looking for a partner in their Vendor Central selling and fulfillment efforts.

They needed a warehouse partner that could seamlessly connect their Sub-Vendor account, highly-specialized brand labeling requirements, and products in stock, and ready for their high-touch fulfillment needs and marketing efforts.

Vendor Central Fees, Chargebacks, and Fines 

On  Vendor Central, brands can fulfill their orders with Amazon using Prepaid or Collect fulfillment.

The Amazon’s Prepaid Fulfillment program, if your Purchase Orders arrive later than the due date set by Amazon, your brand begins to experience increasing costs based on actual shipping time.

With no control over the time it takes your products to arrive in Amazon’s warehouse after it’s shipped, any delays can cost brands with fees, chargebacks, and canceled POs.

Vendor Central is one of many areas where many startups and enterprise brands face some of the most significant hurdles in their Vendor Central strategy. 

With thin margins and little room for error, eliminating uncertainty in the shipping and receiving process is critical.

Unstable Growth in 1P Sales Performance

Before coming to CPG.IO, a growing CPG beverage brand was losing profits with an undermanaged Vendor Central strategy.

Sales performance for brand sales efforts through Vendor Central fell in inconsistent patterns that correlated with incurring fees and chargebacks that led to even more inconsistent sales and POs from Amazon. 

With no A+ or EBC content, sparse titles, bullet points, or media,  they needed expert account, inventory & order management, alongside attractive content and media that drove sales.

CPG.IO’s Comprehensive Vendor Central Services

When CPG.IO took control of the beverage CPG’s Vendor Central account as a Sub-Vendor, we went into action. Custom software installation and integration with our systems began immediately.

As our dedicated Vendor Central account managers laid the groundwork for product arrival, we began to analyze the data to create their first strategic reports including velocity analysis, forecasting, keyword research, and competition. 

New content, images, and media began to be created by our team within 24 hours to create a visually engaging experience while optimizing keywords, brand language, and keywords that integrated directly into their 3P and in-store strategy.

Amazon 1P Warehouse Integration

When the brand came to us to be their complete 1P fulfillment partner, they were a part of Amazon’s frustration-free shipping program with strict processes in place, specific carton sizes, and a unique, brand-sp barcoded license plate label using specialized software. 

Within two days, we fully integrated their software and specialized branding and labeling requirements into our warehouse processes as their products arrived to make a seamless transition to their 1P fulfillment partner. 

Eliminating Fees and Chargebacks With Amazon Connect

We quickly entered and got the brand approved into Amazon Collect, with Amazon in charge of shipping and dictating how POs will ship, which means the brand only needs to meet the ship-by date Amazon stipulates.

Flexible Pricing Models & Inventory Consignment

Additionally, we transitioned the brand from a 1P pricing model to a new 3P pricing model rather than purchasing their products directly. We used a consignment model that alleviated additional costs for the brand while maximizing its fulfillment capacity.

Getting the Most out of Vendor Central 

While being a 1P provider with access to Vendor Central has a lot of perks, the disadvantages of selling to Amazon as a 1P provider can give businesses both large and small a pause due to the policies, price control, and the potential for chargebacks and other associated costs. 

Combined with the savings from optimized fulfillment through Vendor Central, entry into Amazon Connect, alongside a consistent growth strategy,  the brand experienced clear and consistent sales growth, ROAS, and money savings with CPG.IO’s Amazon Vendor Central fulfillment capabilities.

Led by optimized content, marketing, and Amazon Ad campaigns, the brand experienced clear and consistent sales growth, ROAS growth, and money saved with CPG.IO’s 1P Vendor Central services.

In conjunction with expert Vendor Central account management, optimized content, and fulfillment practices, CPGIO’s efforts led to increased profit margins.

CPG.IO Vendor Central Services

If you have problems maintaining Amazon-ordered products or fulfilling their delivery requirements, you lose time, money, and momentum. CPG.IO Vendor Central Services give you the ultimate fulfillment flexibility, marketing strategy, and inventory scalability to grow your profitable Amazon 1P strategy. 

We make tailor-made Vendor Central strategies that incorporate dedicated account management, high-touch fulfillment, and a comprehensive Amazon 1P optimization strategy. 

Sign up for a free brand analysis to learn how CPG.IO can elevate your Amazon 1P sales and growth strategy.

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