Learn all about Amazon COS (Call-Off Stock)

Introduction

Selling on Amazon is a golden opportunity. Until now, it was possible to expand to Europe, subject to numerous administrative procedures. This could annoy some brands. Amazon understood this and recently launched the Inventory Under Depository Agreement (COS) program for its Fulfilment by Amazon Pan-European service. This initiative promises to transform the way sellers manage their inventory, and maximize their presence on the platform. In this article, we'll explore the key benefits of the COS program for Amazon sellers in detail.

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1. The Benefits of the COS Program for Amazon Sellers

The Depository Inventory (COS) program represents a revolution for sellers on Amazon, especially those looking to expand their presence in the European market. Here is a more detailed overview of the multiple benefits this program offers:

Simplified access to European markets

The COS program eliminates numerous administrative barriers, facilitating access to several key European markets. With a single VAT registration number, sellers can extend their reach to the markets of Germany, France, Italy, and Spain, major commercial hubs in Europe. This ease of access opens up sales opportunities in new markets, allowing sellers to reach a larger and more diverse customer base.

Flexibility and expansion of storage options

Thanks to COS, sellers can not only store their products more efficiently but also distribute them strategically across Europe. More specifically, France, Italy, Germany, and Spain. This strategic distribution of stock ensures that products are closer to end customers, which reduces delivery times and improves the customer experience. Additionally, it provides sellers with greater flexibility to respond to fluctuations in demand in different countries.

Easier compliance with VAT legislation

Navigating VAT regulations across Europe can be a major challenge for Amazon sellers. COS alleviates this burden by simplifying compliance requirements. This means fewer complications and paperwork for salespeople, allowing them to focus on growing their business rather than complex tax issues.

Optimization of logistics costs

Centralizing inventory through the COS program can lead to a significant reduction in logistics costs. By storing products in strategic locations, sellers can reduce transport and delivery costs, a significant financial advantage. This allows salespeople to reinvest savings into other areas of their business, such as marketing or product development.

Improving consumer visibility and trust

The words “Shipped and sold by Amazon. Provided by [your name]” on products stored via COS confers greater trust and credibility with customers. This increased trust can lead to higher conversion rates and increased customer retention. Additionally, increased visibility in key markets can lead to increased traffic to product listings and, as a result, increased sales.

Competitive and strategic advantages

By using COS, sellers can gain a significant competitive advantage. The ability to quickly ship products throughout Europe is a major asset, especially in an environment where fast delivery is increasingly valued by consumers. Additionally, inventory optimization and simplified compliance allow sellers to focus on longer-term growth strategies, such as expanding product lines or entering new markets.

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3. Impact of the COS Program on Amazon advertising

Amazon's introduction of the COS program opened up new ways for advertising on the platform. This change is having a huge impact on how salespeople can approach and optimize their advertising campaigns.

Cost reduction and advertising budget maximization

Centralizing and optimizing logistics costs through COS allows sellers to make considerable savings. Indeed, if you sold via the EFN system, i.e. your stock is shipped from your country of origin, you pay up to 2x more for shipping. These savings can be reinvested in advertising campaigns, allowing sellers to maximize their advertising budget. With additional funding available for advertising, sellers can explore more creative and expansive strategies, increasing their reach and visibility on Amazon.

Using data for more effective campaigns

The COS program provides sellers with access to valuable data regarding stock movements and customer preferences in different countries. By exploiting this data, salespeople can refine their advertising campaigns to make them more relevant and effective. This includes adjusting keywords, customizing advertising messages, and selecting the products that are most likely to succeed in each market.

Improving responsiveness to market trends

With inventory spread across different countries, sellers can respond more quickly to changing trends and consumer demands in different markets. This responsiveness makes it possible to adjust advertising campaigns in real time, focusing on specific products or promotions that meet current customer needs.

Maximizing returns on advertising investment

In the end, all of these benefits combine to maximize the return on investment of advertising campaigns. With more targeted advertising strategies, lower costs, and better use of data, salespeople can achieve greater advertising effectiveness, resulting in increased sales and better profitability.

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In conclusion

Amazon's Inventory Under Deposit Agreement (COS) program represents a significant advance for sellers looking to expand their presence in Europe. By simplifying inventory management and offering new possibilities for effective advertising campaigns, COS is a powerful tool for increasing visibility and sales on Amazon. Ultimately, the COS program is not only a logistical solution; it is a catalyst for success in the dynamic e-commerce market.

If you're having trouble with COS, SkyVision is here to help. If you have any questions, feel free to contact us.

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