Hand Over Your Amazon Channel: Inventory Buyout or Consignment

A product maker in a workshop wearing safety glasses and a leather apron, with the headline Make the product. We'll handle Amazon, for an inventory buyout or consignment offer.

Running a brand on Amazon is a full-time job. For many manufacturers, it is a second full-time job on top of making great products.

The listings need work. The ads need work. Inventory has to land on time. Account health has to stay clean. Pricing has to stay competitive. None of that is why most manufacturers started the business. They started it to make a good product. Amazon then became a second operation that sits on top of the first one.

If you are a US brand doing $500K to $3M a year and Amazon feels like more work than it is worth, there is another way to sell there.

Through our network, qualified brands can hand over their Amazon channel entirely. Inventory can be bought outright or placed on consignment. The listings, pricing, advertising, fulfilment and account health are all handled for you. You keep making the product. Someone else does the Amazon heavy lifting.

Who this is for

This is for brand owners and manufacturers in the United States who already have a real Amazon business, and who would rather not build an in-house team to keep it running.

It is a good match when you have steady sell-through and a clean catalogue, and when the owner wants more predictable revenue from Amazon without adding headcount. It also fits brands that are doing well enough on the channel to be taken seriously, but not so large that a full internal Amazon organisation is already in place. The usual range we look at for a handover is $500K to $3M in annual sales.

The categories that work best are:

  • Toys
  • Sporting goods
  • Outdoor
  • Pet
  • Home and kitchen
  • Collectibles
  • Lawn and garden

It is not a fit for apparel. Electronics are a harder match, and we will say so if the category is likely to be a poor fit rather than force it.

If your volume is well below that range, or your catalogue is still being rebuilt, a handover is probably not the right next step. Get the basics in order first, then come back to it.

How a buyout or consignment handover works

There are two ways the channel can be taken on: a buyout, or consignment.

In a buyout, inventory is purchased outright. You agree what will be taken, on what terms, and you are paid for that stock. The Amazon channel is then run for you.

In a consignment arrangement, you still own the inventory until it sells. The stock is placed with the operator in our network, who stores it, lists it, prices it, advertises it and fulfils the orders. You are paid as the units sell, rather than in one upfront purchase.

In both models, the day-to-day Amazon work moves off your desk. Listings, pricing, advertising, fulfilment and account health are handled for you. The right model depends on the brand, the category, how inventory is held today, and what you want from the relationship. We will walk through both options with you and tell you honestly which one, if either, is a fit.

What you keep, and what you hand off

A handover is not a sale of the brand. You keep the brand, the product and the manufacturing. You also keep any other channels you already run, such as your own website or wholesale, unless you choose to include them.

What typically moves across is the Amazon work:

  • Listings and catalogue upkeep
  • Pricing
  • Advertising
  • Fulfilment and the movement of inventory on Amazon
  • Account health, and the day-to-day running of the account

You stay the brand owner. You do not have to stay the Amazon operator.

What we look at

Not every brand will qualify, and that is deliberate. A handover only works when the products can be sold cleanly and the volume is real.

We look at the category, annual sales, sell-through, and the state of the catalogue. A clean catalogue means complete listings, clear titles and attributes, and no unresolved variation or quality problems that would have to be unwound first. We also look at how inventory is held today, because that often decides whether a buyout or consignment is the better route.

If it is not a fit, we will say so. There is no point forcing a handover that will not work for the category or the numbers.

What to do next

If this sounds like your brand, send your category and approximate annual sales to info@asinlytics.com, or use the contact form. We will tell you honestly whether it is a fit.

Originally published on LinkedIn. Join the conversation on LinkedIn.

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