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VIO
VIO
What is VIO?
VIO is a mechanism in the 1P (vendor) model where the vendor proactively asks Amazon to generate a purchase order.
Unlike standard POs, which originate from Amazon’s demand forecasting system, a VIO is triggered by the vendor to ensure Amazon has enough inventory for a specific purpose.
When vendors use VIO:
- preparing for major events (Prime Day, T5, T12)
- launching new ASINs or variations
- supporting retail promotions or price reductions
- preventing stockouts during high velocity periods
- managing seasonal demand (Back to School, Q4, etc.)
- correcting low inventory caused by inaccurate forecasting
How VIO works:
- vendor requests a PO through their Amazon retail contact or Vendor Central tools
- vendor specifies the ASINs and quantities
- Amazon reviews demand, capacity, lead time, and profitability
- if approved, Amazon issues the formal purchase order
- vendor ships the inventory under standard VC processes
Factors Amazon considers before approving a VIO:
- current in stock rate
- recent sales and forecasted demand
- vendor reliability and VCR
- FC capacity and network placement
- retail profitability and margin structure
- event relevance and timing
Benefits for vendors:
- greater control over inventory availability
- ability to secure stock for promotional campaigns
- reduced risk of out of stock during key events
- improved sales velocity and Buy Box stability
Benefits for Amazon:
- better network preparation for demand spikes
- reduced OOS rates
- higher customer satisfaction
- smoother forecasting adjustments
Example:
Before Prime Day, a vendor sees strong momentum on a kitchen appliance and requests a VIO for 4,000 extra units.
Amazon reviews demand projections, approves the request, and issues a purchase order to ensure adequate stock coverage.
Why It Matters:
VIO helps vendors influence inventory decisions when demand is expected to exceed Amazon’s forecast, ensuring strong availability for high impact events and promotions.
In short:
VIO (Vendor Initiated Order) is a vendor requested purchase order used to secure additional inventory for promotions, events, or anticipated demand surges.
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