Scene 12
The configuration table
These are setup configurations, not strategies. Each one is a way to plug the Amazon-wholesale channel we run (called 1P — first-party, where Amazon buys from us and resells) into the distribution strategy you already have. The wholesale agreement underneath all four is the same — we hold the Amazon vendor account, we take title to your products at wholesale, and we pay you Net 45 (45 days after Amazon confirms receipt of your shipment into its fulfillment network — your product drop-ships from you to Amazon, so the clock starts the moment Amazon scans it in). What changes between setups is how much of your catalog flows through us and whether your existing Amazon agency stays in the picture.
Four ways to plug VendorSprout into the distribution strategy you already run. They are not four different strategies. The strategy is yours — or your agency's, or your consultant's. We're the operator of one specific channel within it. Same wholesale agreement underneath all four; what changes is scope and coordination.
VendorSprout as your only Amazon Canada presence.
Your full eligible Amazon Canada catalog flows through our wholesale account. We become your single seller of record on Amazon.ca. We negotiate annually with Amazon as your category vendor. We manage A+ content, brand registry overlap, listing health, vendor-side compliance, and Amazon's commercial relationship.
You ship us inventory on our wholesale PO cadence — typically every four to six weeks. We invoice you on standard wholesale terms; you collect on Net 45 with favourable terms. From the customer's point of view there is one Amazon Canada presence for your brand: Sold by Amazon.ca.
Your existing FBA keeps running. We run 1P on a separate set of SKUs in parallel.
We agree on which SKUs go into the 1P channel. Each ASIN sits in exactly one channel — no Buy Box conflict between your 3P listing and our 1P listing. Your 3P operation runs untouched.
We run 1P on the agreed SKUs the same way we'd run Full Channel for that subset. Your team or your agency continues to manage your 3P. We coordinate on cross-channel decisions when needed (advertising, content consistency across ASINs, seasonal forecasting) but operational ownership is split clean down the SKU list.
A hand-picked few SKUs. The rest of the catalog stays where it lives.
We pick a small number of SKUs together — typically two to five — and run those through 1P. Everything else in your catalog stays exactly where it is today: your FBA, your DTC, your wholesale, your retail.
The Selective model is operationally identical to Full Channel for the chosen SKUs; the difference is scope. After 60–90 days of performance data you decide whether to expand to additional SKUs, shift to Hybrid, or unwind. There's no commitment to expand.
Your existing Amazon agency keeps running everything they run today. We run the 1P channel underneath.
Your agency keeps doing what they do — FBA inventory management, PPC, A+ Content, DSP, brand store, listing optimization, ranking work, advertising spend. We run the 1P channel as a parallel layer.
We coordinate with your agency on the things that touch both channels: A+ content consistency, advertising strategy across 1P and 3P, vendor-side promotional decisions, brand registry alignment. Your agency reports to you; we report to you. Neither reports to the other. The customer-facing Amazon presence stays unified; the two operating layers stay clean.
| Dimension | 01 Full | 02 Hybrid | 03 Selective | 04 Agency Co-managed |
|---|---|---|---|---|
| Catalog scope | Full eligible catalog | Subset of catalog | Small hand-picked set | Subset or full |
| Your existing FBA | Retired or never existed | Continues, separate SKU set | Continues unchanged | Continues unchanged |
| Your existing agency | Optional | Continues for 3P | Continues unchanged | Continues in full |
| SKU overlap risk | None — single channel | None — split by SKU | None — Selective SKUs only | None — split by SKU |
| Typical setup time | 60 days | 45 days | 30 days | 60 days |
| Brand-protection burden | Concentrated on us | Shared | Shared | Shared with agency |
| Best for | New to Amazon or chaotic state | Working 3P, want to add 1P | Test on heroes | Existing agency you don't want to disrupt |
| Typical starting size | Full catalog, often $500K+/yr | Subset, $200K+/yr per channel | 2–5 SKUs, no minimum | Any size aligned with agency scope |
No current Amazon Canada presence? Start at Full Channel. Working 3P/FBA program you want to keep? Start at Hybrid or Selective. One or two hero SKUs doing most of the volume? Start at Selective. Existing Amazon agency you don't want to disrupt? Start at Agency Co-managed. Not sure? Pick the closest and bring the question to the call — most engagements start in one configuration and evolve. The model isn't a contract; it's a starting shape.
Manufacturer-archetype Hybrid: existing wholesale apparatus (case packs, EDI, MAP) adds Amazon Canada as one more downstream wholesale buyer. The clean fit for established brand operators.
Single hero SKU moved from 3P/FBA to 1P. 30–45 to 400+ units / month. Category rank: below #40 to #7. Classic Selective entry.
High-cube SKU rescued from FBA size-tier pricing. 10 to 250+ units / month with improved margins. Selective model fit driven by unit economics.
Yes. The most common evolution is Selective → Hybrid → Full Channel as a brand gets comfortable with the 1P operating model and expands the SKU set we manage. Less common but supported: Full Channel → Hybrid if a brand decides to re-enable a 3P presence on certain SKUs. The wholesale supply agreement is the same regardless of model; switching is an amendment, not a renegotiation.
Yes. Hybrid is technically defined by having different SKUs in different channels, so "expanding Hybrid" just means moving more SKUs into our 1P scope. There's no separate paperwork — it's a forecast and PO adjustment.
Bring it to the call. The four models cover ~95% of real engagements but there are edge cases — multi-brand parent companies, license-back arrangements, transitional periods after an acquisition. We've handled most of them and the answer is usually a variant of one of the four with a specific accommodation.
Selective: ~30 days. Hybrid: ~45 days. Full Channel and Agency Co-managed: ~60 days. The driver is setup scope (number of SKUs, A+ content build, EDI integration, agency coordination), not the model itself.
The underlying wholesale economics are the same — we buy at wholesale, take title, sell to Amazon, pay you on Net 45 with favourable terms. Specific pricing is per-SKU and depends on your costs, category, and Amazon's prevailing economics in your category. We don't charge management fees, percentage commissions, or per-model setup fees. Our margin is in the wholesale spread.
Yes, with a scope adjustment. If you go Full Channel and your agency was managing your 3P presence, their 3P scope retires when 3P retires. They typically retain scope for everything else they were doing — advertising strategy at the brand level, off-Amazon marketing coordination, retail-channel work, broader e-commerce strategy. Many brands keep their agency at full retainer; the agency's role shifts toward strategic oversight.
We work out a transition plan. Common options: sell through existing FBA inventory before 1P launches (slowest), pull FBA inventory back to your warehouse and have it become part of the inventory we'll buy from you (cleanest), or run a brief overlap period where 1P launches on new SKUs while 3P inventory sells through (smoothest customer experience). The right option depends on your inventory position and how time-sensitive the transition is.
Both, ideally. We have a standing quarterly cross-team call between your agency, us, and your team. Between those, day-to-day operations are run by each side independently. For anything that requires alignment across both channels (cross-channel promo, shared content, vendor escalations), we'll coordinate directly with your agency, copying you. We don't go around you; we report to you.
Yes. We actively encourage it for Agency Co-managed engagements — the call quality improves when your agency is in the room because the operational fit between our 1P scope and their existing 3P scope is the central question. We've also had agencies bring us to their client introduction calls; same dynamic, same value.
There's no hard floor. Selective has been launched with as few as two SKUs. The economics work better with more volume — both for us and for you — but we don't turn away small starts if the SKUs are a clean fit. The discovery call is the right place to discuss whether your specific situation is below practical scale.
The wholesale supply agreement is terminable on notice — typical commercial terms, 60–90 days depending on inventory position. There's no annual commitment, no minimum revenue clause, no break fees. The reason most engagements last is that the unit economics make sense, not that the paperwork traps you.
A two-pass decision. First pass is unit economics: which SKUs benefit most from 1P's specific advantages (Subscribe & Save algorithm, Business pricing, Buy Box stability, FBA-fee escape for high-cube items). Second pass is operational: which SKUs you want to keep on 3P for inventory-control, pricing-flexibility, or agency-scope reasons. The output is a SKU list with clear channel assignment, reviewed quarterly.
