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Amazon Vendor Central vs Amazon Seller Central

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Amazon Vendor Central vs Amazon Seller Central

When you’ve decided on the benefits of selling on Amazon, there is one major decision that needs to be made before you start to sell a single product; Amazon Vendor Central vs Amazon Seller Central. There are benefits to both, and equally there are drawback on both platforms. Here’s or guide to get you started.

Definitions

The main difference between Vendor Central and Seller Central is how you sell. As a Vendor (known as 1P) you are selling wholesale to Amazon and you agree commercial terms with them as you would with any other wholesale customer. They will raise a PO for your products and you will fullfill to their warehouses.

As a Seller/Marketplace Seller (known as 3P), you sell on the Amazon platform through Seller central and pay Amazon a percentage of sales as commission. When selling as a Seller, you have two options, selling via FBA(Fulfilment by Amazon) whereby you send your products into Amazon’s warehouses and they distribute for you, or MFN(Merchant Fullfilled Network) where you self-fulfil to the end user from your own warehouse.

Vendor Model

If you are a manufacturer of a reasonable size, this would be the typical relationship that you would have with Amazon. It may be that you have already been approached by Amazon or are in negotiations around this now. An internal Amazon policy known as “Manufacturers as Sellers” focusses on the fact that if a brand is selling well through other 3P sellers, Amazon will attempt to strike a Vendor relationship with them in order to sell direct.

Advantages of being an Amazon Vendor:

Disadvantages of being an Amazon Vendor:

Seller Model

Designed to allow smaller brands to grow on Amazon, selling as a seller gives you control over your fulfilment and pricing models. There are two options for selling via Seller central. FBA and MFN. FBA is the preferable choice, it allows you to send your products into Amazon’s warehouses and they will dispatch your products when orders come in. It also allows you to offer your products to Prime subscribers via next day delivery – a definite conversion optimiser. MFN however would be a more suitable option if you sold bespoke or personalised items that are made on request, or if items are too bulky or costly to be sent into Amazon’s warehouse in any meaningful volume.

Advantages of Seller Central:

Disadvantages of Seller Central:

Conclusion

There is no correct answer when looking at Amazon Vendor Central vs Amazon Seller Central as it depends on many factors related to your business model. We do hope however, that our points above have helped guide you in the right direction.

Expert Edge can help you with all the things above if you don’t have the time or resources to do it yourself. Our team is made up of former Amazon employees, vendors and sellers who have experience in doing this for multi-million dollar/pound brands as well as smaller startup brands. Find out more about our Amazon Consulting services.

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