LAS VEGAS – First-time Prosper exhibitor Strategic Distributors has been selling directly to Amazon for the last dozen years. The last 10 of those years has focused on adding as many new brands as possible to be sold by Amazon themselves through Vendor Central. As Amazon 1P (first-party) specialists, Strategic Distributors occupies a special niche in the Amazon eco-system.
If you’ve ever been curious about Amazon 1P, you’ll want to stop by Booth #252 when Prosper convenes March 10-12 at The Wynn Las Vegas. Prosper Pathway sat down with Andrew Tjernlund, founder of Strategic Distributors, to learn more about the why, what, and how of Amazon 1P.
Prosper Pathway: Strategic Distributors is not a service provider or a consultant, so what are you?
Andrew Tjernlund: We are your newest customer. Our goal is simply to get permission to buy your items. We then sell them directly to Amazon, via Vendor Central, with a markup. Due to our particular relationship with Amazon, we have worked with hundreds of sellers that actually make MORE money this way than when selling on Amazon themselves. We require no contracts or exclusivity, so, really, all we need is a price sheet and we are ready to go.
Prosper Pathway: How do you help brands to achieve the Amazon 1P (first-party) status?
Tjernlund: As a “Strategic Distributor” (Amazon’s term for us, although we do not represent Amazon directly or indirectly), our goal is to enhance Amazon’s selection of items they can sell themselves. We have wide latitude to add brands to our catalog so that Amazon can source these units from us and sell them as “Shipped and Sold” by Amazon. The brands do not sell to Amazon in this case; they sell to us and we resell to Amazon so that brands get the benefits of having their items sold by Amazon without the challenges of maintaining a direct relationship with Amazon.
Prosper Pathway: Why is an Amazon 1P listing so desirable?
Tjernlund: No one is better at selling on Amazon than Amazon themselves. They have a more-than-perfect seller account rating, extra access to promotions and new programs, pay no storage or fees, and have an unlimited ad budget. Having your items sold by Amazon can often lead to more sales and better margins. People can visit our booth to hear more.
Prosper Pathway: How does listing on Amazon 1P help sellers to focus on their brand?
Tjernlund: We want sellers to focus on what makes them great: product development, marketing, and launching new distribution channels. Selling 1P frees up time spent managing an Amazon account so it can be used in other key areas.
Prosper Pathway: Why did you decide to exhibit at Prosper?
Tjernlund: I attended the first ever Prosper Show as a Prosper Award Winner as a top seller. I am running the same business I was then, and we have grown to the point that exhibiting at the Prosper Show now makes sense so that we can more easily meet with other sellers.
Prosper Pathway: What is your level of optimism these days when it comes to the future of online selling?
Tjernlund: It is getting increasingly harder to sell on Amazon; that’s why exploring a new strategy, like selling to Strategic Distributors, is especially worth a look now.