Amazon European Brand Licensing Program: New Opportunities for Sellers

Amazon launched a new project for Europe, the brand licensing project, at the Global Store Strategy Seller Global Summit in March 2018. This project aims to help sellers achieve business growth on European websites by licensing existing Amazon brands to high-quality third-party sellers to provide unique traffic and brand support. Among them, home lifestyle brand umi. and consumer electronics and accessories brand eono are already open to participate.

Project fees and commissions

In 2018, the project commission was waived, while in 2019, the commission range was set at 5%-10%.

Project role

This licensing project has significant advantages, including but not limited to:

1. Anti-Selling: Sellers participating in the project can exclusively occupy the ASIN’s buy box, and other sellers are not allowed to follow suit.
2. Free limited-time flash sale marketing: Participating sellers can arrange limited-time flash sale promotions for free under certain conditions.
3. Direct mail marketing promotion: Sellers of authorized brand projects have the opportunity to reach potential users through direct mail promotion.

Terms of participation

Sellers must meet the following requirements to participate in the project:

1. Product performance: The product must be ranked high in the catalog and have a review score of four or more.
2. Pass factory audit: Amazon will audit the factory’s supply chain management and quality control capabilities, and check the factory’s social responsibility report.
3. Product compliance management: Products must comply with EU inspection regulations, and for products with a risk of infringement, sellers must have relevant patent rights.
4. Pricing requirements: Product pricing needs to be competitive when compared to other related products.

Project advantages

Sellers participating in the brand licensing program will enjoy many advantages, including:

• Higher product home page exposure.
• Higher chance of getting the title of “Store Treasure”.
• Free VINE Review and limited time flash sales (under special conditions).
• Private brand flagship store and exclusive purchase button.
• Dedicated project account manager.

FAQ

Here are answers to some frequently asked questions:

• Brand ownership: The brand is registered and owned by Amazon, and Amazon authorizes the brand to be used by sellers according to the project.
• Product sales model: Sellers sell products directly to customers rather than delivering them through Amazon.
• Pricing and Inventory: Sellers are responsible for product pricing, inventory and estimated sales, and they need to pay attention to the competitiveness of product prices.

In short, Amazon’s European website’s brand licensing program provides new business opportunities for high-quality sellers, and helps sellers stand out in the fierce market environment through diversified marketing support.