If you’re an Amazon Vendor and are receiving fewer purchase orders than expected leading into the holidays, then you aren’t alone.
Many Amazon Vendors across multiple verticals are reportedly experiencing fewer than projected purchase orders from Amazon, which is causing worry about how this might affect advertising plans due to insufficient inventory to support planned campaigns.
We sat down with Eric Kauss, Director of Amazon and Marketplace Operations at Tinuiti, to learn what’s happening and what you should do if you’re worried about your purchase orders from Amazon.
Why Are Some Vendors Experiencing Fewer Purchase Orders From Amazon?
“We are learning that some Vendor accounts are receiving fewer purchase orders than they were expecting during the lead up to the holidays, which is obviously a cause for concern,” says Kauss.
“Amazon is stating the issue is being caused by fulfillment center capacity in the ramp up for Black Friday and Cyber Monday. As the holiday develops and space opens up, they react to items that are the most successful on the platform. ASINs with campaigns that are driving sales and traffic will be given priority for orders to be issued.”
-Eric Kauss, Director of Amazon and Marketplace Operations at Tinuiti
What Can You Do?
If you are experiencing lower than expected purchase orders, you might be tempted to panic and reduce funding for your advertising campaigns.
Kauss explains that although this is an option, it isn’t always the best solution.
“If you need to adjust your advertising campaigns due to fewer purchase orders, then first review both the campaigns and inventory levels to target dollars where they can be the most effective,” says Kauss.
“Advertising is equally important to focus on both short-term and long-term goals. You want to keep your products in front of the customer consistently to reap the long-term benefits, especially during the holidays and leading into the new year.”
When Will I Receive More Purchase Orders?
“If your products are applicable for a ‘new year, new you’ theme, then you should start receiving new purchase orders for that event in the second half of December.”
“With Thanksgiving being late this year, there is also a possibility that even after Black Friday/Cyber Monday, some Vendors’ purchase orders will not increase as expected due to Amazon planning for what inventory they want to have at the end of the year,” explains Kauss.
What About Sellers Experiencing Slower Shipment Pickups?
“With regard to Sellers, some are experiencing their shipments are not being picked up in a timely manner. Since they control what inventory goes into the fulfillment centers, they should review their plans for the next 30-45 days to accommodate for the late pickup. If they don’t adjust, they run the risk of unnecessary storage fees down the road. As for campaigns, points 2-4 above are applicable,” says Kauss.
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