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Marketplace Strategy & Management Flashcards

7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Marketplace Strategy & Management flashcards as text

  1. A CEC candidate is advising a client who sells the same product across Amazon, their DTC site, and Target Plus. What MAP policy consideration is most important?

    Answer: Consistent MAP enforcement across all channels prevents price erosion and channel conflict, but sellers cannot legally force compliance—only incentivize it

    MAP policies are legally advisory (not enforceable as price-fixing) but brands can terminate relationships with violators; consistent enforcement protects channel integrity.

  2. Which marketplace advertising format allows sellers to target shoppers who have previously viewed their product page on Amazon?

    Answer: Sponsored Display ads using remarketing audiences

    Sponsored Display with remarketing targets shoppers who viewed your product detail pages, allowing retargeting without DSP budget requirements.

  3. What is the significance of the 'IPI score' (Inventory Performance Index) for Amazon FBA sellers?

    Answer: It measures inventory efficiency and determines how much FBA storage capacity Amazon allocates to the seller

    Amazon's IPI score reflects how efficiently a seller manages FBA inventory; scores below Amazon's threshold result in reduced storage limits and higher fees.

  4. A seller wants to launch a new product on Amazon with zero reviews. Which launch strategy is most compliant with Amazon's Terms of Service?

    Answer: Enrolling in Amazon Vine to receive verified reviews from trusted reviewers

    Amazon Vine is the only TOS-compliant program that provides early reviews by having trusted reviewers receive products in exchange for honest feedback.

  5. When a marketplace charges a 'referral fee,' what is it based on?

    Answer: A percentage of the total sale price (including shipping) of each item sold

    Referral fees on Amazon and most marketplaces are calculated as a percentage of the total sale price including shipping, varying by product category.

  6. A consultant is evaluating whether a client should sell as a '1P vendor' or '3P seller' on Amazon. What is the key trade-off?

    Answer: 1P vendors sell wholesale to Amazon with less control over pricing/content; 3P sellers retain control but bear more operational responsibility

    Vendor Central (1P) offers simplicity and shelf-space credibility but sacrifices price and content control; Seller Central (3P) provides autonomy but requires more active management.

  7. Which of the following best describes 'marketplace saturation' as a risk factor in ecommerce strategy?

    Answer: A product category where competition is so dense that differentiation is nearly impossible and margins are compressed to near zero

    Marketplace saturation describes a category so crowded with similar products and price competition that new entrants struggle to achieve profitability or visibility.