The Need to Break Silo’s

Amazon Vendor Pressures Due to Silos

Amazon customers go to to purchase products they need based on the need for replenishment or an unexpected need. These customers are not remotely aware of the pressure brands and vendors face to ensure they can receive their purchases on the same day or the next day. Many vendors do not understand Amazon’s pressures on businesses until it’s too late. Invisible inefficiencies become large blockers and potential operating challenges that can kill businesses.

At Equity Commerce we have noticed time and again how structural challenges inside organizations/businesses lead to business pressures that inherently impact the performance of the business. A simple situation such as, in what department is the e-commerce team found in? Is it inside marketing, operations, or the sales department. While this may seem trivial the lack of empowerment by the business of the e-commerce team ensures that its not being communicated with during brand negotiations with retailers and marketplaces. In an omnichannel world, retailers are building marketplaces and increasingly want inventory for the online and retail channel. If the -commerce team is in the dark, this leads to chaos and missed opportunities. 

Another pressure point is access to data. Can businesses and brands access all of their data easily to be able to create a 360 degree picture? We see data held inside agencies, agencies reading reports and driving meetings with brands without brands being able to make sense of performance.


The Holistic Solution

It may seem to all be doom and gloom but the solution is that silos need to be broken. It may sound easy but we have seen on countless occasions if the process is not driven by top management or the process is sponsored by C-level executives it leads to regression to past behaviors. 

Many vendors do not understand that by breaking down the silos between departments and staff will in the long run lead to success in all channels. Retailers want to have products on shelves that are available at similar prices at various stores and having channel control over online sales will lead to better margins and profitability. 

Vendors who want to succeed and understand the importance  of data, analytics and total alignment can get in touch. Let’s get started – reach out to us today.  



When Should Amazon Vendors Do Audits?

How often should Amazon vendors audit their businesses?

In every business year there are times when the business can take a breath and reflect on what has happened operationally, analytically inside and outside of the business. Amazon vendors have the opportunity to use the end of quarter four (the week after Christmas) and the early parts of the new business year to audit the business. What should vendors do to better understand the performance of their business?


Vendors collect the evidence

In order for an audit to be successful a brand or Amazon vendor should collect all of its data to be able to create a picture/dashboards to understand business performance. Data sources such as Amazon Vendor Central data, social media data, direct-to-customer website sales data, and advertising metrics should be collated in order to understand what happened inside the business. Alternatively business can also use their reporting software to visualize the annual data in order for reports to be created.

Additionally vendors should also audit the various vendors/agencies that are used to perform tasks. Comparing the contract value against performance should also be done to enable discussions/negotiations with these vendors in the following year. At Equity Commerce far too often we see brands and Amazon vendors who are not receiving the return on investment from their vendors  in relations to the fees paid for services rendered. 

Audits should be used as another opportunity to note learnings from a particular event (Prime Day),  post mortems from advertising campaigns that should be shared company wide. Audits will also indicate previously unseen costs or issues that should be noted and prioritized to not occur in the new year.


Keep Amazon Honest

Amazon vendors should also create a playbook or process to audit Amazon’s performace by asking for monthly or quarterly meetings to ensure that suucess can be achived. Amazon vendors should also audit their Amazon fees, charge backs to ensure that they are not being incorrectly being billed.

We’d very much like to hear about your marketplace pain points and serve as your guide on the audit journey. Let’s get started – reach out to us today.