As an Amazon seller, you have access to hundreds of resources and tools designed to help your business grow. While it can be overwhelming to learn about them all, it’s crucial to know your options and how to utilize them.
One of these resources is Amazon’s Vendor Services (AVS), formerly known as Strategic Vendor Services (SVS). This service has been highly debated whether it’s worth it or not because it comes at a high price, but it can be very beneficial for big brands.
Here are a few key things to know about Amazon’s Vendor Services before we dive into the pros and cons:
- Amazon only offers this service to its top sellers.
- It starts around $250,000 per year.
- The service is highly customizable.
- There are five categories you can choose from to get help: business advice, selection, conversion, traffic, and availability/ops efficiency.
You can tailor these services based on your specific needs. For example, if you want to optimize your operations and increase traffic, you would request a person who has expertise in those areas. You can also choose whether you want full or light support, which can affect your yearly fee with Amazon’s Vendor Services.
If you are one of the few vendors invited to participate in Amazon’s Vendor Services, it’s important to know the pros and cons before you make a decision. It’s an expensive investment, so we’ll dive into the details to make you have the information you need.
Pros of AVS
One of the most prominent advantages of AVS is that you get help with your Amazon business from the inside. Amazon hires these experts to help their top performers find even more success, so you can have peace of mind knowing someone is in your corner doing everything they can to optimize your Amazon business to its fullest potential (if you want to see more about hiring Amazon experts, read here).
The AVS experts know how to improve every aspect of your brand. From the branding process to optimization, they can help you find weak spots in your business and build them up to become strong. This optimization will give you a solid foundation, and as you improve your foundation, the sales, conversions, and growth will follow.
It’s also crucial to have a solid foundation before you start spending massive amounts of money on advertising. Your AVS experts can help you optimize your account so when you do start advertising, you can feel confident in your business as a whole.
Cons of AVS
Although there are plenty of pros when it comes to Amazon’s Vendor Services, there are a few cons worth mentioning if you’re thinking about investing. First, if you aren’t specific or even somewhat demanding with your needs and wants, you won’t get the most out of the service. And for the price you’re paying, you should be more than satisfied with the results of your service.
Speaking of pricing, Amazon’s Vendor Services are extremely expensive and start at $250,000 per year. It could be a great option if you have the money to spend. However, you might find that an in-house team or a higher advertising budget would be a better use of the money.
Finally, this service is invite-only. If you run a large store with high revenue, you’ll have a good chance of getting the invite. However, most sellers don’t have the opportunity to take advantage of the service because they simply don’t get an invitation.
Is It Worth It?
Whether this service is worth your time or money comes down to your specific needs and revenue. If your Amazon store makes $1 million a year and you choose to participate in Amazon’s Vendor Services, you would be spending a quarter of your income on this service. It can be worth it if you know your needs and goals and the Amazon team is fully committed to helping you reach them, but there may be more beneficial ways to spend that money.
If you do decide that AVS is right for you, make sure you are clear and specific with your needs so you get exactly what you want and need out of it.
If you want a less expensive option, working with an agency like Laser Sight Digital can be a great solution. Our team of experts works with you one-on-one to optimize your store and help you grow your business whether you’re just starting or you have an established brand.
If you are interested in working with Laser Sight Digital to scale your Amazon store, reach out today for a free consultation. We look forward to working with you and helping you find success on Amazon.