CEC Marketplace Strategy & Management 5 — Questions and Answers
Question 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?
- MAP only applies to the DTC site and cannot be enforced on marketplaces
- Consistent MAP enforcement across all channels prevents price erosion and channel conflict, but sellers cannot legally force compliance—only incentivize it (Correct answer)
- Target Plus automatically enforces MAP on behalf of the brand
- Amazon will auto-suppress listings priced below MAP
Correct 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.
Question 2: Which marketplace advertising format allows sellers to target shoppers who have previously viewed their product page on Amazon?
- Sponsored Products with exact-match keywords
- Sponsored Display ads using remarketing audiences (Correct answer)
- Sponsored Brands with video creative
- Amazon DSP with contextual targeting
Correct 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.
Question 3: What is the significance of the 'IPI score' (Inventory Performance Index) for Amazon FBA sellers?
- It determines the seller's eligibility for the Buy Box
- It measures inventory efficiency and determines how much FBA storage capacity Amazon allocates to the seller (Correct answer)
- It tracks the percentage of orders fulfilled on time
- It scores listing quality and influences organic search rank
Correct 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.
Question 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?
- Purchasing reviews from a review exchange group
- Enrolling in Amazon Vine to receive verified reviews from trusted reviewers (Correct answer)
- Offering a discount in exchange for a positive review via email follow-up
- Creating multiple buyer accounts to self-purchase and review
Correct 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.
Question 5: When a marketplace charges a 'referral fee,' what is it based on?
- The advertising spend of the seller in that category
- A percentage of the total sale price (including shipping) of each item sold (Correct answer)
- A flat per-unit fee regardless of selling price
- The number of customer service contacts generated by the order
Correct 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.
Question 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?
- 1P vendors have higher ad budgets; 3P sellers get better organic rankings
- 1P vendors sell wholesale to Amazon with less control over pricing/content; 3P sellers retain control but bear more operational responsibility (Correct answer)
- 3P sellers pay no referral fees; 1P vendors pay a platform licensing fee
- 1P vendors are exempt from FBA storage limits; 3P sellers are not
Correct 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.
Question 7: Which of the following best describes 'marketplace saturation' as a risk factor in ecommerce strategy?
- A marketplace reaching its maximum number of registered sellers
- A product category where competition is so dense that differentiation is nearly impossible and margins are compressed to near zero (Correct answer)
- An overloaded marketplace server causing listing delays during peak traffic
- Amazon limiting new seller registrations in a specific country
Correct 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.
CEC Marketplace Strategy & Management 5
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?