Thousands of Amazon vendors were sent into panic mode on Monday, March 5th, 2019 as they logged into their Vendor Central accounts to find that there were no PO’s to fulfill and direct fulfillment Vendor’s found that their inventory was set to zero. If you fall into the following profile then you probably received this email:
- Businesses doing $10 million or less in sales volume on Amazon per year, and don’t have assigned vendor managers at Amazon
What is going on? That is a question I am sure thousands of brands were asking themselves as they scramble for answers and solutions. Let’s talk about why this is happening and what brands can do to navigate through this time of ambiguity.
What’s the deal?
While Amazon has yet to formally come out and say why PO’s have halted or why inventory has been zeroed out, there are rumors that Vendor Central and Seller Central will soon be merged into one. This initiative is likely the reason why Vendor’s are experiencing these issues as Amazon narrows down their Vendors to basically an All Star Team. Vendor’s are reporting messages from Amazon stating that they will no longer issuing PO’s for products and recommending Vendor’s open up a Seller Central account. There seems to be a mix of Vendor’s who have received this messaging and because of that it seems as though Amazon is going to start to be a lot pickier on who they choose to be Vendors and only picking the top products in their respective categories along with other metrics such as sales volume and profitability.