Ever heard of the Amazon CRaP list and wondered what it means for your business? In this blog, we discuss the impact of the Amazon CRaP list and provide solutions on how to avoid your brand’s products from being negatively affected by this.What is Amazon CRaP?
The term ‘Amazon CRaP’ refers to products where Amazon Cannot Realise any Profit. While many brands will have seen their sales on Amazon grow over the past couple of years since the onset of the Coronavirus pandemic, with increased growth comes higher pressure around managing and maintaining profitability on the marketplace.
Brands with large product catalogues often face issues where Amazon’s ever-growing terms and wholesale margin requirements can make certain ASINs unprofitable for you. If not carefully managed, these underperforming products can lead to your brand losing sales and rankings on the marketplace.
The impact of Amazon CRaP on your brand
Although Amazon won’t necessarily want to reduce their product offering on the marketplace, it places much importance on focussing its merchandising strategy around profitable products. Your brand’s items could end up on the Amazon CRaP list for reasons such as the marketplace receiving too much inventory relative to demand, expensive shipping costs, or a lack of pricing structure across multiple channels.
So how could ending up on the Amazon CRaP list impact your brand? Amazon has been known for using various tactics for under-performing ASINs such as limiting your on-platform advertising and promotional capabilities, search suppression and in some cases, even delisting CRaP products.
What can you do to "Cut the CRaP"?
The point of the Amazon CRaP list is to encourage brands to reconsider the pricing, packaging, or shipping costs of their products in favour of the marketplace channel. One way to avoid your products ending up on the CRaP list is to explore bundling for products that may be unprofitable to sell individually. Not only does bundling allow you to increase your selling price, but it can also help to reduce costs for handling and shipping the products to customers.
Brands seeking an alternative way to resolve their Amazon CRaP status are increasingly considering selling via a Hybrid model. A hybrid model allows brands selling on Amazon to leverage both Vendor (1P) and Seller (3P) models, by choosing a distribution mix that is most profitable for their business. This approach lets you proactively manage your portfolio across 1P and 3P to help drive certain brand objectives that may be difficult to achieve through the Vendor model alone. Switching to selling CRaP ASINs on Amazon via Seller Central, rather than through Vendor Central, could help you to manage costs and maximise profitability in the long run.
How can Molzi by Brainlabs help?
At Molzi by Brainlabs, we remove the need for brands to work with multiple agencies, offering a fully integrated 3P retail solution to help your brand grow on Amazon. We act as the authorised marketplace seller for your brands, handling all aspects from Amazon administration and fees, to managing reviews, customer service and fulfilment. We’ll ensure your brand’s activity on Seller Central is centred around customer experience whether that be by improving the availability of your stock on Amazon, re-introducing CRaP ASINs or by utilising the test and learn capabilities on the platform.