I bought your brand for only 1,000 yuan! Amazon's internal information exposed

I bought your brand for only 1,000 yuan! Amazon's internal information exposed


Amazon has been selling its own products on its platform for a long time. Since the first launch of its own brand in 2009, there are now more than 80 Amazon own brands, covering many fields such as clothing, shoes, home furnishings and jewelry.


As of 2018, private brands have occupied 16% of Amazon's global market share. These brands rely on Amazon's inclination and algorithm support to run rampant on Amazon.



However, whether developing and establishing new brands or operating and maintaining old brands, it requires continuous investment of resources and manpower. With more and more self-operated brands, even Amazon began to feel the strain.


When it comes to understanding the Amazon platform and products, apart from Amazon itself, we third-party sellers are the only ones who know more about it.


The best solution is to ask third-party sellers to help you solve the development and operation problems of your own brand.

Amazon Brand Accelerator and Brand Licensing Program


These two programs solve the development and operation problems of private brands respectively. Let’s take a look at what the Amazon Brand Accelerator and Brand Licensing Program are respectively.


1

Brand licensing


Let’s talk about brand authorization first. This project is very simple. It is to authorize the existing Amazon brand to sellers. Sellers can freely develop and operate products, and Amazon will provide certain traffic and brand support.


Most importantly, these Amazon-owned brands have separate display locations on the foreground and have the opportunity to be directly exposed on the homepage, which can bring in very considerable traffic.



However, in addition to some requirements such as product compliance, competitive pricing, and maintaining a rating of 4 stars or above, sellers participating in the brand authorization program are also required to pay an additional 10% commission. This plan has recently been very popular among European sellers.



2


Brand Accelerator


Our focus is on the brand accelerator. The above project solves the operation and maintenance of existing self-operated brands, and this accelerator solves development problems.


Sellers participating in the accelerator program can establish their own brands and develop and operate products (brand ownership, etc. belongs to the seller). Amazon will provide support such as product selection data, advertising, and traffic inclination. At the same time, like the brand authorization above, there will be a separate display position on the front desk.



In addition, sellers in the accelerator program can also enjoy


Enhanced Brand Protection Policy

as well as

Vine (green label) comment tool !


With so many benefits and functions , sellers must be scrambling to participate, right?


Think about it carefully. The essence of this accelerator program is to help Amazon cultivate its own brands . Sellers who use the accelerator can make their brands bigger and better, but doesn’t the ownership of the brand still belong to the sellers?


We took a closer look at the investment details of the accelerator project and found this sentence



That’s right, the Accelerator Program agreement states that “Amazon can acquire participating brands at any time.” Many sellers here will definitely think that if Amazon wants to acquire a brand that they have worked so hard to build, they will definitely take the opportunity to ask for a high price.


This is the most cunning part of Amazon. According to an insider who wishes to remain anonymous, the acquisition price in the accelerator agreement is fixed at $1,000!



No matter how famous and valuable your brand is now, and no matter how much time and money you put into cultivating it, Amazon only needs one thousand dollars to buy your brand . This is the biggest pitfall of the entire accelerator program!


So the purpose of this project is to provide the same level of support to all participating sellers. When any of them has grown their brand, Amazon will directly buy it at a low price and make it its own brand .


Although the accelerator perfectly solves the problem of developing new private brands, Amazon's acquisition terms are so covert and the consequences are so light that some sellers who want to participate in the program will definitely fall into the trap.


How many people, when faced with a similar choice, would agree without even looking at it?



Although these two projects are currently only being carried out on European sites, according to an insider (not the same person as mentioned above), the brand accelerator and brand licensing projects will soon begin a small-scale pilot on the US site.


Such a deep-seated plan is about to be implemented on the US site, which has a large number of sellers. I can already imagine how big a wave this will cause.


Although brand authorization requires an additional 10% commission , it is still worth trying for sellers/suppliers who need high-quality brands.


As for the brand accelerators that follow, you must remember that the effort and financial resources you have spent may be bought out directly with a thousand dollars! Be careful when participating!


Sellers who are interested in the two plans, scan the QR code and chat with me to get the official investment introduction and channels

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group


Source: Cross-border Business School

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