Introduction: Why Are Amazon Vendor Account Cancellations Disrupting Brands in 2025?
Since November 9, 2024, Amazon has canceled hundreds of smaller 1P Vendor accounts, targeting brands with $5–10 million in U.S. revenue or €2–5 million in Europe. This strategic realignment, hitting just before Prime Big Deal Days, Black Friday, and the 2025 holiday rush, has left many brands scrambling. With e-commerce in Spain hitting €25.742 billion in Q4 2024 (up 13.4% per CNMC), quick adaptation is essential to capture peak demand amid intensified competition.
What Is Amazon Vendor Central?
Amazon Vendor Central is the invitation-only portal for 1P sellers who supply products directly to Amazon. Amazon handles pricing, logistics, distribution, and product feeds, with items listed as “Sold by Amazon” to boost Buy Box wins. While it offers less control, it leverages Amazon’s vast infrastructure for scalability.
What Is the Difference Between Amazon Seller and Amazon Vendor?
Understanding these models is key to navigating cancellations. Here’s a breakdown:
- Amazon Seller Central (3P): Brands sell directly to consumers via Seller Central, managing feeds, pricing, and customer experience. Logistics options include FBM (brand-handled) or FBA (Amazon fulfillment). Benefits: Access to 310 million active customers and 2.7 billion monthly visits (Similarweb, August 2024), plus full control.
- Amazon Vendor Central (1P): Brands act as suppliers to Amazon, who resells products. Less control over pricing but higher Buy Box potential.
Portals: Seller Central manages products, orders, and campaigns; Vendor Central handles POs, invoicing, and reports.
What Are the Consequences of Amazon Vendor Account Cancellations?
Amazon isn’t eliminating 1P entirely but focusing on high-volume suppliers. Smaller brands without Vendor Managers are urged to migrate to Seller Central for greater control over pricing and customer relations. This shift creates uncertainty but offers opportunities for strategic independence, especially in a competitive 2025 landscape.
How Can Affected Brands Transition Successfully?
To turn challenges into growth, follow these tips:
- Migrate to Seller Central: With expert help, transition smoothly to maintain momentum and gain pricing autonomy.
- Preserve Key Data: Retain reviews, metrics, and rankings to protect visibility and SEO.
- Optimize 3P Operations: Develop strategies for pricing, FBA/FBM logistics, and ads to compete effectively.
Timing matters; act fast to leverage 2025’s heightened e-commerce demand.
How Does Cosmo5 Help with Amazon Vendor Transitions?
As an Amazon AdTech Activation Partner, Amazon Ads Advanced Partner, and Amazon Marketing Cloud Services Provider, Cosmo5 excels in Seller Central management and Vendor migrations. Our end-to-end support includes:
- Account Audits: Assessing current setups for optimization.
- Secure Data Migration: Transferring assets without loss.
- Strategy Design: Tailoring pricing, logistics, and ad campaigns for profitability.
Why Do Amazon Vendor Cancellations Matter for Brands in 2025?
These cancellations force brands to seize direct control, enhancing competitiveness and growth. A well-executed transition to Seller Central ensures sales continuity, better margins, and resilience in a saturated market, turning disruption into a strategic edge.