Amazon Vine - What to Consider Before Enrolling
In Part I of this series - Amazon Vine: Understanding the Value of Your Investment, we detailed the programs specifics of Vine and outlined the potential benefits of the program. In this article, we will identify the challenges associated to Vine present some considerations that brands need to take into account before using Vine.
What obstacles would prevent integrating Vine to your Amazon strategy?
Eligibility
Not every business is eligible for Vine, nor is every product category able to leverage the program. Brands must meet all program requirements to enroll. Restricted items such as “adult products” or products that are virtual bundles are ineligible for the program. Another restriction is that items with over 30 reviews are not eligible - even if Brands wished to increase review count or to combat negative review trends, Vine is not available for those items.
Total Cost Exceeds Sticker Price
While Amazon clearly states the enrollment fees ($200/ASIN in Seller Central and a staggering $1,750 in Vendor Central) additional factors like catalog size and product cost are factors that can dramatically impact the total investment for Vine.
Vine has a ceiling of 200 submissions which allows brands with larger catalogs to incorporate the program. The program fees accrue quickly - for example, if a brand had 10 new product launches the program fees alone would be $2,000 to $17,500 depending on the retail platform being leveraged.
Another key consideration is the cost of goods for the products being enrolled in Vine. Since all units through Vine are given away for free, brands would eat the cost of goods for every unit in the program. If the products have a high retail price (and transitively a higher cost of goods) the total investment far exceeds the sticker price of enrollment.
Limited Control
Brands have little control over the reviews generated through Vine. While they can choose which products to offer to Vine reviewers, they have no control the content of these reviews. This can be a concern for vendors who are worried about negative reviews or reviews that do not accurately reflect their products.
This can be especially frustrating for items with niche applications or very technical requirements. If the reviewer does not intimately know the product or category it may lead to a sub-par experience and thus a poor review.
No Guarantees of Success
Submissions to Vine does not guarantee review generation – not every unit will result in a review. Many brands also find that despite making their products available, there is little or no traction in units consumed by Vine reviewers and could result in the 90-day window ending before all units are consumed. While brands would retain their product, Amazon does not refund, or pro-rate Vine program fees.
Ethical Considerations
Finally, there are some ethical concerns associated with the Amazon Vine program. There are some critics of the program that argue any free product in exchange for reviews can bias the reviews that are generated, and that this can be misleading to customers.
Another consideration is whether the relationship between Amazon and Vine reviewers creates a conflict of interest.
When brands consider implementing Vine into their Amazon strategy, they need to be thoughtful in their consideration of the opportunities and the costs associated to participating in the program and should have a clear understanding of the financial investment that they are making.
Whether you adopt or decline the Vine program into your Amazon strategy – don’t lose sight that reviews are the currency of the marketplace – the need for customer review accumulation needs to be at the center of every brands strategy for Amazon.
Still deciding if Amazon Vine is a fit for your business? Speak to our team of experts for recommendations on the right approach for your brand.