In the ever-evolving world of ecommerce, staying ahead of the latest industry trends and strategies is crucial for success. One recent development that captured the attention of brands worldwide is VBER. But what exactly is VBER, and what does it mean for your Amazon strategy? We’ll walk you through all of the basics below.
If you’re feeling uncertain about navigating these new guidelines, you’re not alone. As a full-service ecommerce accelerator and 3P partner, Pattern offers a wide range of services that align with new VBER guidelines. With our expertise in marketplace management, brand protection, data analytics, logistics and fulfillment, and advertising and marketing, we help brands confidently navigate the VBER landscape while helping them to unlock their full potential on Amazon.
What is VBER?
VBER is a new set of distribution rules that Amazon announced at the end of 2022 and put into effect in April 2023. These new guidelines stipulate that brands must now sell their products directly with Amazon through a 1P relationship or through a 3P relationship with either the brand directly or one approved 3P seller.
Amazon explained the change by saying:
“As is common for all businesses, we regularly review our approach to product sourcing as we try to control our costs and keep prices low for customers. With this in mind, we’ve decided to focus on sourcing certain products for our European stores directly from brand owners. We will continue to source products from wholesalers and distributors if they are the brand owner or have sole distribution rights.
Wholesalers and distributors are still welcome to work with Amazon, and can choose to sell these products to customers directly on our store through Amazon Marketplace, as a third-party seller.”
VBER FAQs
What does VBER stand for?
VBER stands for Vertical Brand Engagement and Relationships
Who Does VBER Affect?
VBER affects any brands selling on Amazon across the EU. It’s most impactful for brands that have been selling their products through multiple Amazon 3P sellers and/or distributors.
Why is Amazon UK Making This Change?
VBER is a movement toward greater efficiencies and streamlined operations for Amazon. Instead of relying on distributors to manage relationships with brands, Amazon aims to establish more direct connections and work directly with brands themselves.
How Does VBER Affect My Amazon Strategy?
On the one hand, establishing a direct relationship with Amazon can provide brands with greater visibility, control, and access to valuable data. Brands can gain more insights into customer behavior, optimize their pricing strategies, and enhance their overall performance on the platform. This direct engagement can also foster stronger brand-Amazon collaborations, leading to potential marketing opportunities and increased sales.
On the other hand, brands will need to navigate the complexities of managing their relationship with Amazon directly. This includes tasks such as listing optimization, inventory management, customer service, and data analytics. Without the support of distributors, brands may need to invest in new resources and capabilities to effectively manage their presence on Amazon.
Supercharge Your Amazon Strategy with Pattern
Pattern’s team of experienced professionals understands the intricacies of the ecommerce industry. We combine data-driven insights with industry expertise to help brands make informed decisions and drive growth. Our scalable solutions cater to brands on marketplaces around the world, and our track record of success speaks for itself. We have helped numerous brands to increase their profitability across ecommerce marketplaces.
To learn more about VBER and how Pattern can support your brand’s success on Amazon, get in touch with our team today.
