Episode Number:

26

May 26, 2025

About AO2 Management

AO2 Management is a full-service, omni-channel ecommerce agency committed to providing comprehensive solutions for online businesses. They offer a wide range of services designed to help brands succeed across various platforms, including Amazon, Shopify, Walmart, Google, and Meta. Their expertise spans from strategic planning and listing optimization to advertising, email marketing, and even blog content creation. AO2 Management positions itself as a partner that can guide businesses through the complexities of the online marketplace, ensuring a cohesive and effective omni-channel strategy. Whether a brand is just starting or looking to scale, AO2 Management aims to provide the support and expertise needed to achieve their ecommerce goals.

Why Branding is the Future of Selling on Amazon: Key Insights

Danan kicks off the conversation by asking a crucial question: Why is branding so vital for Amazon sellers, even those starting with generic, white-label products? Jessica provides compelling reasons:

  • Increased Difficulty for Resellers: Amazon’s efforts to combat counterfeit products and protect intellectual property (IP) have led to stricter listing requirements. This means it’s becoming increasingly challenging for resellers who don’t own the brand to list and sell products freely.
  • Enhanced Brand Protection Tools: Amazon has rolled out sophisticated tools like Brand Registry and Project Zero, empowering brand owners to safeguard their listings and IP. This naturally results in more listings being “gated,” preventing unauthorized sellers from jumping in.
  • Tighter Margins: The ecommerce landscape is becoming increasingly competitive, leading to shrinking profit margins. The traditional model of retail arbitrage (buying products off the shelf and reselling on Amazon) is less viable as Amazon prices are often already lower than retail prices. Finding deeply discounted items in-store that offer a significant advantage is becoming rare.
  • The Closing Doors for Resellers: The shift towards brand protection is directly impacting resellers. Enhanced Brand Registry features and stricter requirements for UPC codes and sourcing documentation are making it harder for non-brand owners to list and sell products. The days of easily creating duplicate listings for existing products are fading.
  • The Importance of GS1 UPCs: Amazon is cracking down on the use of non-standard or purchased UPC codes from unauthorized sources like eBay. They are increasingly requiring sellers to use GS1-issued UPCs, which provide a universally recognized identifier for products, making it easier for Amazon to link listings to legitimate brands and crack down on counterfeit or unauthorized sellers.

Jessica emphasizes that while Amazon’s intention isn’t necessarily to be “reseller averse,” the measures taken to protect brands inadvertently create significant hurdles for those not invested in building their own brand. Amazon is ultimately happy to take commission from anyone, but the evolving landscape favors those with established brands and proper product identification.

Essential First Steps for New Brands on Amazon

For brands ready to dive into the Amazon marketplace, Jessica outlines critical “must-dos” before even creating a single listing:

  1. Obtain GS1 UPCs: As discussed, securing legitimate UPC codes directly from GS1 (or an authorized partner) is paramount. This ensures your products have unique and recognized identifiers, crucial for listing and long-term brand management on Amazon. While in the past, purchasing cheaper UPCs from third-party sites might have seemed like a cost-saving measure, it’s now a risky practice that can lead to listing issues and hinder brand registration. Remember, you are essentially leasing these codes from GS1 with an annual renewal fee.
  2. Enroll in Amazon Brand Registry: This is arguably the most crucial step for brand owners. Registering your brand with Amazon provides access to a suite of powerful tools designed to protect your brand, enhance your listings, and create richer content. This includes the ability to control your product listings, report infringement, and utilize features like A+ Content and Brand Stores. It’s vital to ensure your brand name is consistent across your listings and matches your official wordmark or image mark used during the Brand Registry process. Changing brand names and UPCs after listings are established is notoriously difficult.
  3. Explore New Seller Incentives: Amazon offers various incentives for new sellers, particularly those utilizing Fulfillment by Amazon (FBA). These programs can include fee waivers, advertising credits, and other benefits designed to help new businesses get off the ground. Researching and enrolling in these programs can significantly reduce initial costs and provide valuable support.
  4. Focus on Knowledge Acquisition (with Caution): While free resources like Amazon forums and LinkedIn can be helpful, Jessica initially suggests caution due to the prevalence of misinformation. Danan rightly points out the potential pitfalls of “YouTube University.” Instead, focus on reputable sources and communities. Danan recommends Wizards of Ecom (Carlos’s group) as a valuable free resource for beginners. For more experienced sellers, he mentions Inner Circle with Brandon Young and the professional-level MDS (Million Dollar Sellers) group. Networking with experienced sellers and seeking advice from trusted professionals can fast-track your learning and help you avoid costly mistakes.

Both Jessica and Danan emphasize the value of connecting with experienced individuals in the industry. They both generously offer to help make introductions, highlighting their passion for supporting others in the ecommerce space.

Is There Still Room for New Brands on Amazon?

The resounding answer from Jessica is yes! However, the path to success for new brands in 2025 and beyond lies in building a genuine connection with consumers. Key strategies include:

  • Focusing on Brand Engagement: Consumers today are looking for more than just a product; they want to connect with the story, values, and community behind the brand.
  • Leveraging Brand Ambassadors and User-Generated Content (UGC): Authentic content from satisfied customers and collaborations with relevant influencers can build trust and drive engagement.
  • Creating a Multi-Channel Presence: Building a presence beyond Amazon, including your own website and active social media profiles, is crucial for establishing brand identity and fostering direct customer relationships.

Jessica acknowledges that simply white-labeling a product and expecting organic success is increasingly difficult. However, starting with a private label approach can be a “foot in the door.” The key is to then actively build your brand identity, connect with your audience, and differentiate yourself beyond just the product itself.

Danan further elaborates on this point, highlighting the saturation in many product categories. The ease of finding similar products from multiple sellers often leads to a “race to the bottom” in pricing. Building a strong brand fosters brand loyalty, leading to repeat purchases and reducing reliance on constant advertising to maintain visibility. His own experience with his supplement brand, boasting a significant repeat customer rate and a loyal customer who has spent a substantial amount over the years, underscores the power of brand building.

The conversation also touches on potential future disruptions like tariff changes and the removal of the de minimis exemption, which could impact the competitive landscape. However, both agree that the fundamental direction for long-term success on Amazon (and beyond) is building a strong and recognizable brand. Diversifying manufacturing and expanding to other sales channels like Shopify are also crucial for long-term stability and growth.

The Services and Software Discussed

While not explicitly a software-focused discussion, the conversation touches upon essential services and platforms for ecommerce sellers:

  • GS1: The official source for obtaining legitimate UPC barcodes.
  • Amazon Brand Registry: A program that provides brand owners with tools to protect their brand and enhance their presence on Amazon.
  • Amazon Seller Central: The primary platform for managing your Amazon business.
  • Fulfillment by Amazon (FBA): Amazon’s fulfillment service.
  • Shopify: A popular ecommerce platform for building your own online store.
  • Wizards of Ecom: A free community group for ecommerce sellers.
  • Inner Circle with Brandon Young: A more advanced community for Amazon sellers.
  • MDS (Million Dollar Sellers): A professional-level group for high-revenue Amazon sellers.
  • AO2 Management: Jessica’s full-service, omni-channel ecommerce agency offering support across various platforms.

Conclusion: Building a Brand is No Longer Optional

The key takeaway from this insightful conversation with Jessica Wright is clear: building a strong brand is no longer optional for success on Amazon. The platform’s evolution, driven by the need to protect intellectual property and provide a better customer experience, increasingly favors brands that offer more than just a product. By focusing on obtaining legitimate UPCs, enrolling in Brand Registry, understanding your audience, and building a genuine brand identity, you can create a sustainable and thriving business on Amazon and beyond.

How to Contact the Guest

Ready to connect with Jessica and learn more about building your brand and expanding your ecommerce presence? Here’s how you can reach her:

  • LinkedIn: Jessica Wright (This is her preferred and most responsive method of contact).
  • AO2 Management Website: ao2management.com/
  • Sales Inquiries for AO2 Management: [email protected]

Danan also generously offers to make introductions to his network. You can reach out to him, though he humorously notes his challenges with email response times, so connecting with Jessica directly might be the most efficient first step!