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AMAZON VENDOR CENTRAL VS. SELLER CENTRAL: WHICH ONE SHOULD YOU CHOOSE?

WHY DUBAI, UAE MARKETPLACE IS PROFITABLE FOR E-COMMERCE BUSINESS? 17th Feb, 2022

AMAZON VENDOR CENTRAL VS. SELLER CENTRAL

Do you think it would be luxurious to sell products on Amazon? Of course, it is! But, are you the one who is still stuck to make a quick decision whether to sell or not sell on Amazon? If yes, should it be via Seller Central or Vendor Central mode?

For all your queries, we have put together a guide article for you to not only know the difference between Seller Central and Vendor Central but also their pros and cons.

As Amazon is the most popular e-commerce website where maximum potential customers and big sellers can be found, every business wants to be a part of Amazon today.

Amazon grants dual modes of selling products to its worldwide sellers- Vendor Central or First Party and Seller Central or Third Party.

Though the final result appears similar by selling both the ways- your products will be available to the right customers on Amazon. Still, the process of both differs a lot!

Let’s get started with knowing the features Amazon provides to its sellers.


WHAT IS AMAZON SELLER CENTRAL?

Framed by Amazon, this eCommerce-based web platform allows the sellers to sell their products directly to Amazon customers.

The Seller acts as a third-party seller to the customers and manages pricing, products, logistics, and a lot more.

This web interface is used by marketplace sellers for fulfilling orders obtained from Amazon’s customers.

Here, you get to choose between two options to fulfill the orders received. Either you can handle each order- its shipping, customer service, returns or you can get all this done by Amazon by enrolling your products in the Fulfilled by Amazon (FBA) program.

Amazon Seller Central account can be used by anyone.


MERITS OF AMAZON SELLER CENTRAL

  • Accessibility to Amazon customer data
  • Flexible logistics options
  • Improved brand content
  • Quick payment terms
  • Controlled unauthorized listings by other retailers
  • A better understanding of your product and its demand region-wise
  • Pricing control helps compare prices with competitors to stay economical

DEMERITS OF AMAZON SELLER CENTRAL

  • Limited advertising options
  • Complicated sales procedure
  • Managing Seller Central account- marketing
  • Responsibility for lost inventory, sales reconciliation, and taxation liabilities
  • Not “sold and shipped by Amazon” products lacks consumer trust
  • Excessive fulfillment costs lead to a shortfall in low-priced items on Amazon

WHAT IS AMAZON VENDOR CENTRAL?

As an Amazon vendor, you sell your products to Amazon/Amazon-employed buyers, who then further sell them to Amazon customers/users. For this reason, you’re the first-party seller.

The pricing is looked out by Amazon with a mutual agreement between the seller and Amazon. This way, there can be observed an increase in sales of newly launched products by selling at a lower price.

Producing sufficient sales could get you noticed by Amazon and you may receive an invitation to join Vendor Central.


MERITS OF AMAZON VENDOR CENTRAL

  • Simple process
  • Fulfilling purchase orders to Amazon and not customers
  • No inconvenience to manage warehouse inventory
  • “Sold by Amazon” products build consumer trust
  • Running AMS ad campaigns to drive traffic to product pages
  • Delivering within Amazon’s logistical dimensions
  • Amazon Advertising Console- an advertising platform beneficial for both sellers and vendors
  • No trouble with customer service, returns, or exchanges
  • Multiple advertising options
  • Opportunity to create A+ content
  • Participation in promotional programs- Amazon Vine, Subscribe & Save

DEMERITS OF AMAZON VENDOR CENTRAL

  • Invite-only program
  • Absolute control of Amazon
  • Maintaining inventory levels and order fulfillment
  • Problems at times of new product launch
  • Pricing controlled by Amazon
  • Fixed logistical options
  • Traditional payment terms
  • Traditional sales process

THE MID-WAY: AMAZON VENDOR EXPRESS

Amazon has umpteen reasons to keep you motivated to rush back to its platform, and thus it has also created a third option to sell on Amazon- Vendor Express.

If you want to take benefit of both Seller Central and Vendor Central, then Amazon Vendor Express is just for you.

The merchant is as independent as the Seller Central. Amazon supervises the customers providing you ample time in your hands for promoting and improving products.

The best part about Amazon Vendor Express is that you are liberal to quit the Amazon warehouse and utilize FBA while the product gets directly shipped to the customer.

About the price, the criteria remain the same as in Vendor Central, where Amazon is the decision-maker.


Features of Opting Amazon Vendor Express

  • It is freedom between Seller Central and Vendor Central.
  • Befitting financial backup is needed.
  • The core intent should be to get into Vendor Central and maintain healthy relations with both customers and Amazon.
  • You get Amazon Prime free two-day shipping, free shipping on orders above $49, and $25 for books
  • Just sell products to Amazon leaving all the other activities to be taken care of by Amazon.
  • Just sell products to Amazon leaving all the other activities to be taken care of by Amazon.

WHICH ONE TO CHOOSE- AMAZON SELLER CENTRAL OR VENDOR CENTRAL?

While opting for Amazon Seller Central, you can expect huge margins due to your direct engagement in sales. Wondering how? You’ve got all the chance to exclude any hitch in between, take charge of the salesperson, and indeed- the sales- enjoy the high margin rate.

On the other hand, Amazon Vendor Central, as you would be selling your products in bulk, Amazon will possess the right to decide the margin. In simple terms, with Amazon taking care of selling your products while reducing your workload, the profit margin thus gets impacted.

The Amazon Vendor Central approach is suitable for bulk traders, whereas the Amazon Seller Central approach is preferable because of the shipping facilities Fulfilled by Amazon (FBA).

The bottom line is- no matter what products you deal with, either Vendor Central or Seller Central can be advantageous for you.

Both of them have different sets of feasible scopes and drawbacks. To know which one to rely on, get in touch with professional e-commerce specialists

BEST E-COMMERCE EXPERTS TO HELP YOU 24X7

If you have rambled enough and are still not able to choose what could help your business better between Amazon Vendor Central and Seller Central, freeze that.

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You can keep away the worry to invest a lot of expenses, as the e-commerce solutions by Go4Amazon are reasonable and of the highest quality.

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