Amazon Vendor Services (AVS) - Is it Worth it in 2025?

Thinking about getting Amazon Vendor Services (AVS)? You're not the only one wondering if it's worth your money!

Let's break it down:

What is AVS? It's like having your own Amazon helper (called a Brand Specialist) who works with you to:

• Promote your products

• Boost your sales

• Help you find new customers

Here's something interesting: Only about 2 out of every 100 Amazon vendors use AVS. But get this - these vendors make up 20% of all Amazon sales!

Pretty amazing, right? But if you're running a smaller business, you might be wondering if it's the right choice for you.

In this article, we'll help you decide by looking at:

• What AVS actually does

• The good stuff

• The not-so-good stuff

• Other options you might like better

• Whether it makes sense for your business

TL;DR:

• AVS provides one-on-one account management for Amazon vendors.

• It’s a big investment—especially for growing businesses.

• Up next: The pros, cons, and an alternative to help grow your business.

What is Amazon Vendor Services (AVS)?

What is Amazon's Vendor Management Program?

Think of it as having your own Amazon expert on speed dial! If you sell directly to Amazon through Vendor Central, this program might interest you.

What do you get? You'll have a personal account manager who helps you with:

• Making your product pages better

• Creating smart ad plans

• Fixing problems quickly

• Managing your inventory

• Handling money issues with Amazon

Your account manager knows Amazon inside and out. They're there to help your business grow and make things run smoothly.

Who is it for? This program works best if you:

• Are a vendor (meaning Amazon buys products from you)

• Want to grow your Amazon business

• Need expert help and advice

The Good News: You get Amazon's own experts helping your business succeed!

The Not-So-Good News: It's not free - and it can be pretty expensive.

Benefits of Amazon Vendor Services

Want to know how Amazon Vendor Services (AVS) can help your business? Let's keep it simple!

Think of AVS as having a personal helper at Amazon. They're not just there for basic help - they're there to help your business grow!

Here’s what makes AVS stand out:

Dedicated Brand Specialist

Get a go-to person who understands your business and helps you stay on top of everything. From optimising product listings to managing orders, you’ll always have direct support which can be a huge benefit for you.

Marketing & Advertising Insights

AVS provides customised strategies based on real data. It can't help you implement Amazon Advertising however, it can help with other aspects such as brand visibility and product listings.

Operational Support

Running into inventory or logistics issues? AVS offers faster resolutions for challenges like stock management and chargebacks, so you can keep things running smoothly. 

You also get direct contact with operational teams through Vendor Live Chat and Vendor consultant approach. No need to worry about those long hold times on the phone anymore!

Brand Protection

AVS helps defend your brand by monitoring for counterfeit products and unauthorised sellers. This ensures your brand stays strong and protected on the Amazon platform.

Business Expansion 

AVS can support vendors in expanding their reach within the EU. This can involve assistance using programs like PICS.

The Cost of Amazon Vendor Services in 2024

While Amazon Vendor Services (AVS) can be a powerful tool for growing your business, it comes with a significant price tag.

On average, businesses pay a percentage of their Cost of Goods Sold (COGS) for AVS (usually between 2-6%), and this can add up quickly. 

From my experience working with various Amazon vendors, many were happy to pay the cost because it fits their business strategy, and they saw a solid ROI over time. However, this isn’t the case for every business.

Here's a quick example - If you sell £3m worth of goods to Amazon and use AVS, you are required to pay a fee to Amazon ranging from £60-180k.

Many businesses say yes - they make back what they spend and see good results over time. For them, it's just part of doing business with Amazon.

But it's not right for everyone. If you're running a smaller business or like to handle things yourself, AVS might feel like paying for something you don't really need.

If you're a smaller operation or prefer a hands-on approach, AVS might feel like paying for something you could handle yourself—or even through a more affordable third-party service who have direct experience with Amazon, like VendorX.

What’s New with AVS in 2024?

Amazon keeps making its tools better for vendors. Let's see what's new this year!

Better Ways to Track Your Success Amazon's new tools show you more about:

• How well your products are selling

• What customers like to buy

• How your ads are doing

Think of it like having a super-clear window into your business. You can see exactly what's working and what's not.

Smarter Ad Help

Amazon's gotten better at helping you show up in searches. They now make custom plans to help your products get noticed by the right customers.

The Big Question

These new features are great - but they come with the same big price tag. Before jumping in, ask yourself: "Will these new tools help me sell enough to cover the cost?"

Just remember: Even with all these cool new features, success still depends on having great products and smart business moves!

Who Should Consider Using AVS?

Let's be honest - not everyone needs AVS. Here's how to know if it's right for you.

Perfect for Big Businesses

If you're running a big operation on Amazon with lots of products, AVS could be just what you need. It works best when you're juggling many items, running frequent ad campaigns, and need help protecting your brand. In these cases, AVS can help you stay organized and boost your sales.

Think Twice If You're Smaller

Running a smaller business or watching your budget? AVS might be more than you need. You can often get great results using basic Amazon tools or working with outside companies that cost less. Sometimes simpler is better!

What AVS Won't Do

Here's something important to know: AVS has limits. It won't help with your Amazon advertising, charegebacks, or shortages. It's mainly focused on helping you work better within Amazon's system - that's it!

Making Your Choice

The key is finding what works for your business size and budget. AVS can be powerful, but it's not magic. If you're doing well with your current setup, you might not need to change things.

Remember: AVS is just one way to grow your Amazon business. The right choice depends on what your business needs right now.

Drawbacks of Amazon Vendor Services

While Amazon Vendor Central offers plenty of perks, it's not without its challenges. Having worked with vendors of all sizes, I've seen some hit their stride with AVS while others struggled to justify the investment. Here are some of the key drawbacks to keep in mind:

The Cost

AVS is not a budget-friendly service. You’re paying for premium management and support, which can eat into your profits, especially if you're not seeing a significant return on investment (ROI).

Reliance on Amazon’s Team

When you use AVS, you’re leaning heavily on Amazon's team. While that sounds great, it can create a dependency. If you stop the service, your business may feel the impact of losing that hands-on support.

Diminishing Returns

While Amazon Vendor Central offers plenty of perks, it's not without its challenges. Having worked with vendors of all sizes, I've seen some hit their stride with AVS while others struggled to justify the investment. Here are some of the key drawbacks to keep in mind:

The Cost

AVS is not a budget-friendly service. You’re paying for premium management and support, which can eat into your profits, especially if you're not seeing a significant return on investment (ROI).

Reliance on Amazon’s Team

When you use AVS, you’re leaning heavily on Amazon's team. While that sounds great, it can create a dependency. If you stop the service, your business may feel the impact of losing that hands-on support.

Diminishing Returns

Not all vendors will experience the same level of success with AVS. Some vendors, especially smaller ones or those with niche products, may find the returns don't justify the ongoing cost, or the costs of the service are eating into your profitability.

Ultimately, the success of AVS depends on your business model and goals—I've seen both sides of the coin.

Brand Specialist Expertise

Of course, you want to be assigned a Brand Specialist who can take care of everything the moment you ask them to... however, this isn't always the case. 

You won't have any choice in your contact person, this is why you need to ensure you are communicating with them frequently and they understand their role in your business.

Limitations

It's important to understand that AVS is not a full vendor central management service. It has its limitations, which should be discussed with Amazon prior to signing your contract.

For example, a Brand Specialist may recommend improving SEO on their product listings, however, it is up to the vendor to carry out keyword research and other tasks involved in this.

Alternatives to AVS

Don't worry if AVS isn't right for you. There are other great ways to grow your Amazon business!

Work with an Agency

Companies like VendorX can help you succeed on Amazon without the big price tag. We help with everything from making your product pages better to running your ads. The best part? You get personal attention focused just on your business.

Build Your Own Team

Want to keep things in-house? You could hire people who know Amazon well to manage your account. This way, you build a team that really gets your brand and sticks with you for the long run.

Why Choose VendorX?

Unlike Amazon's one-size-fits-all approach, we take time to understand exactly what your business needs. Our team works closely with you to create plans that fit your goals and budget.

Ready to Learn More? Let's talk about how we can help your business grow on Amazon.

Book a free call with us today!

Final Thoughts: Is AVS Worth It?

So, is it worth it for your business in 2024? Well, that depends.

We've gone over the pros: dedicated support, advertising campaigns optimized by experts, and help managing logistics. But there are also cons, like the hefty price tag and potential over-reliance on Amazon’s team.

Ultimately, it comes down to your business needs. If you're a larger vendor with high-volume products looking to scale quickly, AVS could be a smart move.

For smaller businesses, though, the cost might outweigh the benefits.

You could consider mixing AVS with other eCommerce tools or services that better suit your budget and goals.

Whichever path you choose, it's essential to keep your focus on what brings the best ROI.

FAQs

Is AVS worth it for small businesses?

A: Small businesses may not need the full suite of AVS services due to the cost. Alternatives like Seller Central or third-party services might be better suited, offering flexibility without the high price tag.

What are the main benefits of using AVS?

A: AVS gives you a dedicated account manager, marketing insights, and operational support, including faster resolution of logistics issues. It’s great for managing large product lines and boosting visibility on Amazon.

Can I use AVS and other services together?

A: Yes! Many vendors use AVS alongside third-party services for added flexibility. For example, AVS might handle your account management while you use another agency for specific marketing or SEO needs.

How do I get invited to Vendor Central?

A: Amazon typically invites businesses that meet certain criteria such as, being a top seller on Amazon Seller Central, having a strong brand name and having a strong product offering.