This comes as no surprise as Amazon offers sellers the chance to grab the attention of 89% of customers who say they are more likely to buy products from Amazon than other eCommerce websites. Whether you’re a small company wanting to build brand awareness, or an enterprise company looking to expand into an international market, there is no denying that Amazon is the front and center of eCommerce. 

Before you get started, you should know that there are two options when it comes to selling on Amazon, yes two! You can either join as a seller on Amazon or as an Amazon vendor, as there is a big difference. 

What’s The Difference? 

The first is an Amazon seller, which is the most commonly used option. It allows brands to use the platform as an additional sales channel to sell to customers. 

The other is selling directly to Amazon. This is called an Amazon vendor, or what is known as a first-party seller. This means you are selling your product to Amazon and they sell it to customers. 

The pros that come with being a first-party seller include; 

• Faster pay than a third-party seller who has to wait 46 to 60 days
• Having better inventory forecasting as Amazon makes bulk purchases 
• Having access to Amazon marketing services  (AMS) and A+ content
• Your product is seen as an Amazon product that brings in more sales 

But, there are a few cons that can make selling directly difficult; 

• Being a vendor is by invite only, so it isn’t accessible to everyone
• Amazon has complete control over pricing, messaging, and logistics 
• Vendors may not see the profit margins they were hoping for
• Difficulty getting new product launches 

How to Sell Directly to Amazon 

Earning an invite is no walk in the park. Amazon takes this seriously, as your product will be tied to its brand. Amazon often selects businesses to join their program if they are; 

• Brands that hold a strong presence on the site, resulting in strong demand from shoppers
• Sellers that were noticed for how well their e-commerce site was doing 
• Brands with products Amazon is interested in having, either seen from trade shows or through research

To become a first-party seller, you need to:

Work on Optimizing Both Your Listing And Search Terms 

To get an invite, you either have to hold a strong presence on the marketplace or have a website that is doing exceptionally well. This can be done by improving your search engine optimization (SEO) for your own website, as this will ensure you drive more traffic, improve trust and credibility, support content marketing, rank on the first page of Google (which is said to get over 90% of traffic), and potentially be seen by Amazon. 

Secondly, improve your product listing optimization (PLO) for Amazon. PLO is similar to SEO as the purpose of it is to help you increase visibility, rank high on the Amazon search engine, increase the conversion rate, which helps generate sales and increase customer demand. You need to do keyword research, stick to Amazon’s 60-character limit for product titles, and have accurate product data. 

About 56% of online consumers start their product searches on Amazon. This is the first stage of their shopping journey, so optimizing your listing and search terms can help your product reach customers on Amazon faster. 

You can use PIM for eCommerce to store all of your product data. You can also store your marketing data such as keywords, SEO elements, and more to help you create optimized content that is informative SEO and PLO friendly, and accurate which will help your efforts for both your website and Amazon list. The more you work on this, the more visible your product will be which will increase the chances of you getting invited into Amazon Vendor. 

Keep Your Pricing Competitive 

Nearly 50% of Amazon shoppers listed competitive pricing as the main reason for purchasing off Amazon. You can use this information to gain popularity in the marketplace. You are competing for customers’ attention with many other brands, and you can gain a competitive edge by selling your products at a reasonable price that customers are willing to pay. You can adjust pricing either by; discounts or shipping costs or by repricing. 

Create a Branded Store 

A branded store lets you customize a storefront on Amazon to showcase your brand’s product and story. This can bring in more traffic from Amazon search and detail pages, which ultimately drive shopper engagement and improve brand awareness. 

Make The Buy Box a Goal 

You may have heard about the Buy Box as it is the end goal for most sellers on Amazon. If you make it onto the Buy Box, it means that Amazon has noticed your product, but it’s a win because it helps to drive more sales with customers. To get into the Buy Box, you need to; 

• Have competitive pricing
• Have a good number of positive reviews 
• Ensure fast and efficient delivery
• Low refund and return rates

Consider Amazon Prime 

Amazon Prime customers are known to spend more than regular customers. In fact, more than 100 million Prime members buy nearly double in comparison to non-members due to the Prime privileges. You can use this to your advantage to get your product out there and reach customers that have a higher chance of doing repeat purchases. This will help you bring in more sales, and can be a signal to Amazon that your product is popular thus adding you to the Buy Box and essentially inviting you to be a vendor. 

Now that we have addressed a few ways to help you get a vendor’s invite, let’s get into how to successfully sell there to ensure this is the right thing for your business. 

How to do Well on The Vendor Program

Right, now you have managed to become a successful third-party seller and you’ve received an invite to become a vendor, now what? While there are a number of benefits to becoming a first-party seller, there are a couple of things that may leave you at a disadvantage. Here are tips to help you change that. 

Sell a Selected Amount of Products 

When you get an invitation to sell directly to Amazon, it’s important to not go in with your complete catalog. Why? As we mentioned before, one of the cons is that they have complete control over the pricing, messaging, and logistics of the products you sell, and they won’t be seen as your products but Amazon’s products. 

To avoid this, choose a certain number of products you want to sell as a vendor, and continue with selling as a third-party seller too. And, yes, you can have both accounts. For example, Steve Madden shoes have both accounts as they are a vendor, have an FBA model, and a third-party option. It is dependent on what the customer wants. 

You can achieve this by splitting product ranges, using different SKUs for different programs, and using different models in international markets. 

Avoid Uploading Your Best-selling Products 

While you may want to add all of your best-selling products to the vendor platform, and Amazon would only take those specific products, it’s best to not upload all of your top-sellers. This is particularly important for SMBs. When you take your best products and sell them to Amazon, you won’t receive traffic to your own website; you won’t receive any brand recognition and you won’t be able to price them as you see fit, which can lead you to not getting the profit margin you had hoped for. 

Instead, keep a balanced ratio of selling your best products as a vendor, so that you can minimize logistics and you can enjoy Amazon Marketing Services (AMS) as it helps vendors stand out and has the potential to drive traffic to product detail pages and branded pages. So, make sure you have a good balance.

Consider Amazon FBA 

When you become a vendor, Amazon will give you the option to do your shipping through them. This gives you access to Amazon Prime members, which can ultimately bring in more sales. Amazon FBA does come with fees and costs that you would want to avoid, but doing your own order fulfillment doesn’t market you to the Amazon Prime members so it is something you should consider. Additionally, you can choose Seller Fulfilled Prime (SFP), which allows you to have control of storing, packing, and shipping while also allowing you to utilize their Prime option, allowing you to reach Prime members. 

But, like the vendor program, choosing the SFP route won’t be easy. There is a trial period that requires vendors to have a minimum of 300 orders and meet Amazon’s requirements such as; 

• A less than 1% cancellation rate 
• Use ‘Buy Shipping Services’ for at least 95% of your orders
• Have at least a 99% on-time shipment rating 

Amazon is associated with the product and you need to ensure you are able to keep their customers happy and uphold their reputation. This is why it has such strict requirements. 

You May Need to Outsource Inventory Management 

When you join the vendor program, they will have inventory requirements that you need to meet at all times. And considering that most of the products on the vendor program are in high demand, it can cause a strain on inventory management, especially if you work alone. To alleviate the pressure, you may need to outsource production so that you can meet demands. This is especially the case if you’re also managing multiple sales channels. 

Final Thoughts 

Selling on various sales channels can be a challenging task, particularly when you want to move up the ladder and join exclusive programs such as selling to Amazon directly. But, it is doable, when you work on your product data to ensure you have product descriptions, product images, and relevant keywords that help you rank better on Amazon. This is why companies are investing in systems like PIM software to help make things easier to help them grow their brand on one of the most popular ecommerce platforms. 

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About the Author:

Plytix is one of the leading Product Information Management (PIM) tools on the market, specially designed for online retail. It is a single source of truth designed to help you manage content at scale and get your products to market faster. 

Having  an Amazon Seller Central account is not the only avenue through which you can make money on Amazon. Apart from Amazon FBA or FBM, you can also make money by selling directly to the eCommerce giant, through Vendor Central Amazon.com. 

And yes, you’ve read it right. You can sell directly to Amazon via Amazon Vendor Central, making the leading eCommerce website your customer. 

Deep Dive into Vendor Central vs Seller Central  

In this article, we will take a deep dive into Amazon Vendor Central. We will also be discussing some of the commonly asked questions about Vendor Central.

What is Amazon Vendor Central?

Vendor Central is a platform reserved for facilitating business between a private vendor and Amazon. When a business owner signs up for this platform, they will not be selling directly to online shoppers but rather to Amazon as a supplier.    

Normally, Vendor Central sellers start as third-party merchants. When their items generate more demand, Amazon invites these sellers to register on Vendor Central to become a supplier. You can see if a company or business is selling through Vendor Central by viewing the Buy Box area of the product detail page.

Amazon.com: Screenshot of Amazon Product Page; Retrieved Jan. 11, 2022 From https://amzn.to/3q81HyO

This type of business model is ideal for businesses that are not built or accustomed to selling directly to consumers. Vendor Central is a route often maximized by distributors or direct manufacturers. 

Selling items directly to Amazon via Vendor Central means that you are a first-party or 1P seller. Like Amazon Seller Central, the Vendor Central platform has its own rules and challenges that vendors navigate.        

What Is Amazon Seller Central?

Amazon Seller Central is another web interface or platform where brands and merchants sell their products directly to Amazon shoppers. Businesses and entrepreneurs with an Amazon Central Seller login account are considered marketplace sellers or third-party merchants. 

As third-party merchants, sellers have the option to fulfill orders on their own. This approach is popularly known as Fulfillment By Merchant or Amazon FBM, where sellers handle the packing, shipping, customer service, and returns for each ordered item. 

As an alternative to FBM, sellers may fulfill received orders directly through  Amazon FBA. Sellers simply send their inventory items to Amazon fulfillment centers, and Amazon will do the rest, including shipping and customer service. 

Whether the order fulfillment is  FBA or FBM, competition remains tough on Seller Central.  To win more Amazon Buy Box and maximize profits, sellers will look into additional seller tools and numerous methods and techniques, including the use of Amazon repricers.  

Vendor Central vs Seller Central – Key Differences

The difference between the two Amazon platforms lies within whom the products are directly sold to and who is selling the product. In Vendor Central, you sell the products directly to Amazon-employed buyers, who will then resell the products to Amazon customers. 

On the other hand, in Amazon Seller Central, sellers directly sell items to consumers as Amazon third-party merchants. Amazon FBA or FBM sellers list their products on Amazon’s website and compete among other sellers for sales. 

Knowing these fundamental differences between the two platforms can help you identify opportunities and drawbacks. To better understand the advantages and disadvantages of Vendor Central vs Seller Central, below are some of the pros and cons of the two platforms.                                                  

Pros and Cons of Vendor Central vs. Seller Central 

• Advantages of Vendor Central

Ideal Buy

Since your items will show up on Amazon as being “sold by Amazon,” they have a higher chance of being bought by customers. Amazon shoppers see these items as an ‘ideal buy’ as they are associated with Amazon itself.

Better Advertising

You can enjoy an efficient advertising tool when you are enrolled in Vendor Central. With an improved targeted campaign, you can increase sales and revenue in the process.

Although Amazon Marketing Services (AMS) is likewise accessible for any seller with an Amazon Seller Central login, it only offers basic features. With Vendor Central, vendors have access to the premium features of AMS, providing an advantage to sellers.

• Disadvantages of Vendor Central

Strict Logistic Guidelines

New members of Vendor Central should be cautious with their inventory and deliverables. Since Amazon is the ‘customer’ and orders are in bulk, fulfilling the order on time is essential. Failure to provide the product demands by Amazon after the deadline could lead to penalties, including chargebacks.

Pricing Control

Once you have an Amazon Seller Central login and start listing items, you are assured that you directly have supervision over the pricing of your items.

In contrast, Vendor Central members have a different experience. Although they can set wholesale prices, Amazon still has the final consent of the listing price. 

Ultimately, it is still up to Amazon to make the decision to place an order with you. In effect, you are practically handing pricing decisions to Amazon. 

Invite Platform Only

To avoid upsetting the Seller Central environment and to ensure that protocols are strictly observed, Amazon Vendor Central is not made available for all interested sellers. This is a limited and invite-only platform that has its own criteria. 

New Product Difficulty

Even if you are enrolled in Amazon Vendor Central, there is no guarantee that you can expand your product line by introducing new products. Amazon restricts vendors from selling new products, making it difficult to launch new items. 

• Advantages of Seller Central       

Product Control

Direct control over inventory items is one of the reasons why Amazon Seller Central is a thriving platform. For efficiency, you can either become an Amazon FBA seller or fulfill orders on your own terms via Amazon FBM. 

With Seller Central, you can choose to sell any products or introduce new items provided they are in line with the general selling and legal guidelines of Amazon. 

Price Control

Like having control over products, sellers using Seller Central can perform price adjustments. To enhance their pricing strategy, sellers can use Amazon repricers, including algorithmic AI repricers. 

With the freedom to adjust prices as they see fit, sellers can compete against leading sellers, including Amazon itself. They can manipulate listing prices to attract shoppers and potentially win the Amazon Buy Box. 

Available Data

Another advantage of Amazon Seller Central over Amazon Vendor Central is the availability of free seller analytics. With the help of consumer and product data, you can easily adjust your strategy in favor of the demands and trends shown by the analytics. 

Apart from the on-site data analytics of Amazon, advanced Amazon repricers, like Seller Snap, also have their own Seller Analytics to help sellers make informed decisions based on real-time data.   

• Disadvantages of Seller Central

Amazon Fees

Having an Amazon Seller Central login means further costs that could sometimes limit sellers from selling low-priced items. Amazon fees and the so-called Amazon hidden costs will consume your profit margin if you are not cautious with handling fees within Amazon. 

Returns

Amazon sellers will also have to deal with returns and customer service following the purchase. This will take time and would require an additional workforce on the seller’s part. 

Customers’ Biases

Unsurprisingly, products sold through Vendor Central are highly favored by consumers than those sold by third-party merchants. The main reason is shoppers’ bias over items indicated as ‘Shipped from and sold by Amazon.com.’ 

Frequently Asked Questions | Vendor Central vs Seller Central  

To improve your understanding of Vendor Central, we have gathered some frequently asked questions about the platform. Knowing the answers to these frequently asked questions can provide you with a deeper understanding of the platform, allowing you to make an informed decision between  Vendor Central vs Seller Central. 

• How Can You Join Amazon Vendor Central?

In order to become an Amazon Vendor, one cannot simply register or create an account similar to that of a third-party Amazon seller. As mentioned, Vendor Central is an invite-only platform. 

To become a first-party seller, you will have to be recruited by Amazon. Amazon has a recruitment team that checks for new brands and products to sell online. If you pass their standard, you will be invited to join the platform.

In general, Amazon recruiters have the following criteria:

• Amazon sellers must have a high sales record on the Seller Central platform.
• The seller must have popular items on the Amazon marketplace.
• There must be a relatively good conversion rate and a low bounce rate for the product.
• Sellers must have interesting products shown at trade shows, fairs, or exhibits.

In order to increase the chances of being invited to Vendor Central, it is advised that vendors first start their selling activities on Amazon Seller Central, as they are more friendly to newbie sellers. 

The goal is to establish yourself as a seller on Amazon Seller Central in order for Amazon to notice you and potentially invite you to become an Amazon vendor. 

• How Do You Begin With Vendor Central?

The best-known way to start with Vendor Central is to become an Amazon seller. Develop an attractive Seller Central record so that Vendor Central recruiters will notice you. 

• Vendor Central vs Seller Central – Which Will Generate More Profit?

In terms of profit margin, Amazon Seller Central provides a higher margin rate than that of Vendor Central. Amazon performs most of the workload, and the profit margin is likewise reduced. However, you do not have to deal with the stress that 3P-sellers deal with.

• How Long Does It Take For Vendors to Receive Money?

Payment-wise, third-party sellers receive money faster than first-party sellers or Amazon vendors. Amazon vendors get their money from a sale only after two to three months. 

• Which Platform Has More Following? 

Amazon Seller Central is more popular than Vendor Central. One of the reasons behind the growing popularity of Seller Central is its easy setup. In contrast, in Vendor Central, vendors will have to be pre-vetted and invited before becoming an Amazon Vendor. 

• How Can Amazon Help Me Sell My Items?

There are various ways Amazon can help you sell your product, whether you are an Amazon seller or an Amazon vendor. Here are some ways Amazon helps their 1P and 3P sellers benefit from the Amazon platform. 

Amazon Ads

Amazon has improved its advertising options to help market your products. What separates Seller Central from Vendor Central in terms of advertising is that the latter has access to premium advertising features. 

Amazon Analytics

Amazon offers information to sellers and vendors through their analytics dashboard. This can help entrepreneurs monitor data to study customers and competitors, leading to informed decision-making.

Amazon Product Shipping

Both sellers and Amazon Vendors have the opportunity to make use of Amazon fulfillment power. For vendors, it is already given that Amazon will take care of the shipping, while sellers will have to choose Amazon FBA to let Amazon handle shipping for them. 

Who Sets Product Prices on Amazon?

Vendors can set their wholesale product price when creating a listing. However, if Amazon disagrees with your pricing, they will email you regarding cost improvements. The price Amazon suggests is likewise available on Vendor Central. In response, vendors can choose from the following:

• Match Amazon’s requested price
• Lower price but not as far as Amazon requested
• Mark the stock as permanently unavailable

On the other hand, Amazon third-party merchants have complete autonomy regarding product pricing, provided it is within the acceptable range. Hence, most Amazon sellers use Amazon repricers to obtain a competitive edge over other Amazon Seller Central users. 

• What Would Be My Role as an Amazon Vendor or Amazon Seller? 

As an Amazon vendor, your main role is to check purchasing orders and billing. You will be responsible for fulfilling orders within Amazon’s logistical requirements. There is no need for you to handle customer service, Amazon will be the one to deal with customers and Amazon returns. 

Amazon will take care of the remaining sales-related tasks once an agreement has been made between parties. By contrast, Amazon sellers will be responsible for their products, including taxation, liabilities, inventory, and sales reconciliation. 

Vendor Central vs Seller Central | Which Should You Choose? 

In choosing between Amazon Seller Central and Vendor Central, the decision should be based on your preference and capacity. 

When making your decision, you should consider the profit and workload involved in each platform. Additionally, you should also be capable of handling orders and maintaining your inventory, especially in Vendor Central, where orders are in bulk. 

At the very onset of it, you will still have to prove yourself as a seller before Amazon can consider you as their potential vendor.