Seller Central vs Vendor Central
There are many different fulfillment options to choose from when selling your products on Amazon. If you aren’t familiar with the differences, it can be overwhelming choosing the fulfillment option that is best for you and your brand.
First, you’ll need to know the differences between Amazon Vendor Central or Amazon Seller Central. The main difference between these two options is who actually sells your products. Amazon will buy your products from you, then resell them to their customers, with Vendor Central. If you choose Seller Central, you will sell your products directly to customers, through the Amazon marketplace.
Continue reading for an overview of Vendor Central and Seller Central and what each offers.
Seller Central
Amazon Seller Central is used by merchants to market and sell products directly to customers within the Amazon marketplace. If you use an Amazon Seller Central account you are considered a third-party Amazon seller. You are responsible for setting up and maintaining your own seller account.
Pros
Open to anyone to use
More control over brand presence
Better view for inventory planning
Control of retail pricing and ability to keep margins consistent
Quick payment terms
More data analytics
Cons
Limited advertising options
Increased logistical management
Vendor Central
Registration for Vendor Central is strictly by invitation only and is commonly used by direct manufacturers and distributors. If you have a Vendor Central account you are considered a first-party seller. You are acting as the supplier, selling your products directly to Amazon in bulk. When you sell products through Vendor Central the phrase “ships from and sold by Amazon” will appear on the order page rather than your brand name.
Pros
Able to participate in Amazon exclusive marketing programs
Bulk sales directly to Amazon
Faster growth for brands with large marketing budgets
Fixed logistical options
Cons
Not open to everyone - invite only
Requires larger marketing budget in order to scale quickly
Amazon controls retail pricing
Limited view of data analytics
Margins typically decrease as sales volumes and slotting fees increase
Lack of Seller support if there are issues
No foreign market expansion support
Increased difficulty in launching new products
Loss of brand control
It’s critical that you create marketing and fulfillment strategies that are specific to the Amazon channel. Knowing the differences between Seller Central and Vendor central is just one small step in the process. Launching a successful Amazon business comes with many tough decisions. If you find yourself lacking the information or time needed to make a killer Amazon strategy, please schedule a free consultation with us today! We want your brand to see success!