As a Vendor on Amazon, you’re always looking for ways to streamline your business, gain an edge over the competition, and unlock the full potential of Amazon as a channel.
Amazon Vendor Services (AVS) is offered as a resource for brands on Vendor Central to do just that. But what does the “premium service” AVS promises actually provide in real terms? And is AVS worth it?
In this article, we’ll explore what AVS can and cannot do for Vendors, the pros and cons of the service, and whether paying for AVS is the right move for your business.
What is Amazon AVS ?
AVS is a paid service Amazon provides to support existing Vendors and develop a more strategic long-term relationship with Amazon. AVS is designed to offer a more guided and supportive approach to navigating the Amazon Vendor Central ecosystem, which is notoriously more complex than Seller Central. AVS focuses on leveraging Amazon's existing resources, internal expertise, and analytics tools to boost vendor performance.
If you opt to pay for AVS, you’ll gain access to:
- Contact with your own AVS Brand Specialist for ongoing support with catalogue and supply chain issues.
- Proactive operational troubleshooting to minimise issues that can lead to Amazon chargebacks and other drains on your income.
- Assistance with expanding your business into EU markets.
- Access to unique analytics tools, with personalised suggestions to improve your marketing.
Main features of Amazon AVS
If a paid programme supporting vendors sounds familiar, that is because AVS used to be called Amazon Strategic Vendor Services (SVS). AVS is an update of the pay-to-play option that Amazon formerly offered only to top-tier vendors.
The service offerings around this paid service has changed a lot since the days of SVS, so here’s a closer look at some of the key features that AVS can offer you today.
Dedicated Support Via a Brand Specialist
Amazon assigns each vendor enrolled in AVS a Brand Specialist as your main point of contact. Brand specialists are permanent Amazon employees, there to support your work developing your Vendor operation, and any high-value activities that support both your and Amazon’s profit margins.
This direct line of support for operational requests and help with custom questions and business reports is certainly one of the stand-out benefits of the programme, and can be useful for liaising with Amazon to resolve issues with your catalogue and supply chain.
Operational Guidance
Vendors paying for AVS on Amazon can enjoy operational troubleshooting and proactive support to help minimise defects, improve confirmation rates, and manage inventory more efficiently. This includes direct contact with operational teams through Vendor Live Chat and Amazon Vendor Consultant support for proactive assistance with things like overstock management and confirmation rates.
Having this direct comms channel can be great for getting operational issues resolved as quickly as possible when time is of the essence.
Strategic Expansion
AVS can also support Vendors in scaling their business across European markets. This may include assisting with supply chain programs such as Amazon PICS / SuperPICS, Pan-EU account activation, and content translation services.
Data-driven Insights
AVS offers access to data and Amazon analytics tools for setting and tracking performance metrics. They can also suggest improvements to detail pages or other marketing options. This can aid in strategic decision-making and long-term planning if you’ve already carried out advertising and content optimisation, and you’re not sure of your next steps.
The Downsides of Amazon AVS
The key features of AVS have obvious appeal, especially if you’re a new Vendor, you’ve had trouble maximising profits, or you have urgent logistical issues that need to be addressed.
However, there are also various drawbacks to AVS that are crucial to consider before you consider buying in.
Here are some of the key downsides of AVS, and how they might undermine the value of the programme for your business.
Amazon AVS Costs for Vendors
AVS is available to virtually all Vendors, but it comes with a cost.
While you might be able to lower the price in your Vendor agreement negotiations, you can always expect to pay 3 to 7% in ContraCOGS. For an exact cost and assessment of your account needs, you’ll need to contact Amazon to explore your options.
Depending on the size of your account and the scale of your operations, the services you require may or may not justify the cost. For example, if your account is doing £5 million a year in sales, the cost may start at £150,000 per year.
Bear in mind that Amazon has a long-running tendency to push for tighter and tighter margins, looking to support the competitive prices that have made them such a huge ecommerce site. This pressure could mean that mid-size or smaller Vendors may find the costs prohibitive in combination with other investments, such as Amazon advertising.
Once signed up to AVS, it can also be hard to leave. AVS contracts are a minimum of 12 months, and there’s no trial period. Amazon states that 99% of vendors on AVS renew their contract, but this might be due to contract concessions and negotiations rather than vendors being thrilled with AVS’s outcomes.
Strategic Limitations
Often, the biggest drawbacks of Amazon AVS are a little harder to quantify, and are simply related to the value of the features that come with being enrolled in AVS.
Here’s a look at some of the strategic limitations you might encounter if you opt for AVS.
Ineffective Brand Specialists
Amazon sells AVS to Vendors by highlighting a range of services and benefits. If you have a hard time navigating Vendor Central, or you have a specific problem that needs to be addressed, then these could certainly be tempting. However, what AVS can actually accomplish could be limited by the skills and experience of the specific Brand Specialist assigned to your account.
It’s certainly possible to get a Brand Specialist who’s a great match for your brand and your unique aims, but there’s a lot of variance from one Vendor’s experience to another, and the real-world results may not always measure up to what Amazon promises with AVS.
Services Not Being Personalised Enough
We’ve worked with Vendors who have signed up for a year of AVS, only to find that the services are too standardised and uniform to provide real value for their business. Just because a Brand Specialist “may” be able to escalate an issue, it doesn’t mean they’ll pursue this proactively or that the issue will be resolved any faster.
Vendors Being Misled About the Impact of AVS
Finally, it’s important to note that there’s no special treatment or getting around Amazon’s prescribed policies. Brand Specialists may also choose to focus on issues that are actually less critical for the vendor, as they may be inexperienced, outsourced, or spread thin over many Vendor accounts.
Operational Complexity
Vendor Central can be overwhelming, and you’ll obviously want to find new ways to reduce this complexity and make using Vendor Central more streamlined.
However, it’s important to note that AVS is not an account management service, and it definitely doesn’t have a full-service scope.
For example, your Brand Specialist may upgrade your detail pages with premium Amazon A+ content. While they’ll often be happy to talk you through what this content is and its benefits, AVS won’t implement it for you, and you’ll need to find your own resources for graphic design and content writing to get this live.
Knowing the potential improvements to your account is only useful if you can implement these strategies effectively. With AVS, the bandwidth for this implementation could easily be eaten up by Brand Specialists’ time constraints, initial setup time, and your own learning curve for tools and implementation.
On top of this, Amazon will always prioritise Vendor accounts that are strategic to Amazon. If you’re a smaller account, the level of service from AVS could be a mismatch, and your resources may be better spent on external account support and growth strategies.
Data Privacy
If you’re operating on multiple channels, it’s important to note that AVS opens up even more data and operational information to Amazon. What Amazon does with this data is essentially out of your hands, and there’s potential that Amazon could leverage it to compete with you directly.
Some scenarios where increased AVS data sharing could lead to Amazon undermining your business include:
- Using sales and pricing data to see that your best-selling products are gaining traction on your own DTC website and other ecommerce markets, then launching a copycat Amazon Basics product at a lower price.
- Noting seasons where you struggle with stockouts, then prioritising their own competing products in search results and Amazon Buy Box placements.
- Analysing the advertising and organic keyword data that drives your sales, then bidding aggressively on these keywords to overtake your listings.
This is less of a concern for major, global brands, but if you’re a smaller Vendor, it’s essential to be aware of how Amazon could use the data you share with them.
Struggling to extract profit from Vendor Central? Our Vendor+ service focuses on efficiency, profitability, and sales growth for all-around effective channel management.
What Amazon AVS won’t help vendors with
Though AVS can certainly have a positive impact on some vendors’ operations, it’s rare that it provides effective solutions to the specific problems you’re facing with Amazon as a channel.
We’ve spoken to many Vendors who have bought into AVS, only to be met with disappointment when they discover AVS can’t help them with certain Vendor Central hurdles, including:
Specific Business Solutions: AVS will provide general support for selling on Amazon, but won’t offer more tailored solutions for specific aspects of your business, for example optimising your warehouse management or setting up more streamlined logistics.
Amazon Advertising Management: AVS won’t provide support in setting up Amazon Advertising campaigns, e.g. Sponsored products, display ads, and Amazon DSP.
Chargeback and Shortage Reimbursements: Chargebacks and shortages are among the most common issues that sap potential profits from a Vendor’s account. Amazon AVS won’t be able to help you recover these funds directly, and you’ll have to dispute these manually using your own time and resources.
General Business Services: Despite all its features, Amazon AVS isn’t a comprehensive response for all your needs as an ecommerce business. Accounting and tax support, customer service for non-Amazon orders, and legal compliance are all areas where AVS tends to fall short.
Alternatives to Amazon AVS
Because of the cost and difficulty of getting out of AVS, Vendors considering AVS need to be aware of the full picture before signing up. Your account’s specific needs, and your tolerance for dependency on Amazon, should be top considerations before you decide to start paying for AVS.
For many Vendors, AVS is simply not the answer. External support from a full-service Amazon vendor-specific agency like WAKE Commerce can offer more customised and broadly resourced strategic account management. This includes everyday operational needs that we often resolve faster, without the need for involving a Brand Specialist.
While the AVS scheme offers a dedicated point of contact, which can be incredibly useful, it doesn’t necessarily mean faster or better solutions. An experienced partner such as WAKE's account managers can fully assess the account needs with any Vendor and determine if AVS is a good fit.
Long-term costs, customised business needs, privacy concerns, and Brand Specialist skills are all factors that can affect the AVS experience. Ultimately, the decision to use AVS should align with a Vendor’s strategic goals, operational capacity, and long-term growth plans.
If you decide AVS is not for you, and want to know what a more streamlined solution looks like, get in touch with WAKE today.
Amazon AVS FAQs
What is Amazon AVS?
Amazon AVS (Amazon Vendor Services) is a paid support program designed for Vendors using Vendor Central to help them navigate the platform’s complexities, optimise operations, and expand into new markets.
How much does Amazon AVS cost, and is it worth the investment?
AVS typically costs between 3% to 7% of your ContraCOGS, with exact pricing depending on your account size and negotiated terms. For larger Vendors (e.g., those doing £5M+ in annual sales), the cost can exceed £150,000 per year. Whether it’s worth it depends on your business’s size and unique needs. AVS may benefit Vendors struggling with operational inefficiencies, but smaller brands might find the cost prohibitive compared to an external full-size agency.
What kind of support does an AVS Brand Specialist provide?
Your assigned Brand Specialist acts as a direct point of contact for operational troubleshooting, catalog issues, and strategic guidance. However, their effectiveness varies - some provide valuable support, while others may be stretched thin across multiple accounts or lack deep expertise in your specific business needs.
Can AVS help recover chargebacks or shortage reimbursements?
No. Despite offering operational support, AVS does not assist with chargeback disputes or shortage reimbursements - you’ll still need to handle these manually. This is a major gap for many Vendors, as these issues can have a major impact on your profitability.
Are there risks to sharing data with Amazon through AVS?
Yes. AVS requires sharing extensive operational and sales data with Amazon, which could be used to inform competing Amazon Basics products or influence Buy Box placements. Smaller Vendors, in particular, should weigh this risk against potential benefits.
Is AVS a good option for expanding into European markets?
AVS does offer support for EU expansion, including help with Pan-EU account activation, supply chain programs (e.g., PICS/SuperPICS), and content translation. However, the level of assistance depends on your Brand Specialist’s expertise, and some Vendors find the guidance too generic.
