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Amazon Seller Central vs Amazon Vendor Central – Basics


While studying Amazon seller central vs Amazon vendor central analytics, you’ll realize that the basic difference between the two is that on seller central, you sell your products directly to Amazon’s customers. On vendor central, you sell your products directly to Amazon and then they sell the products to their customers for you. As a seller central owner, you price, market, and sell your products directly to Amazon’s customers. Many Amazon sellers start their journey from seller central to list their products quickly and start selling immediately. Before boarding onto vendor central, make sure your products are well established. You can always go with both options because both seller central and vendor central have their unique benefits which will be discussed in detail.

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With Amazon Seller Central, sellers or brands use a web interface or panel to market and sell their products directly to Amazon’s customers. Those who have a seller account are also known as third-party sellers or marketplace sellers on Amazon. The major role of a marketplace seller is to handle orders they get from Amazon’s customers making it a more direct approach. There are two options you get as a market seller to fulfil the orders of the customers. Either you can handle the shipping, customer service, and returns for each individual order yourself, or Amazon gives you an option of fulfilling orders which is the “Fulfilled by Amazon” or “FBA” program. By enrolling your products into the FBA program, you allow Amazon to handle orders on your behalf.

What is Amazon Vendor Central?

The web interface used by manufacturers and distributors is Amazon Vendor Central. The term used for sellers selling via vendor central is first-party seller. As a first-party seller, you sell products in bulk to Amazon. You are a supplier here and Amazon will sell your products to their customers. What’s the key element to running a successful vendor-central supply chain? You never let the supplier or Amazon come in direct contact with each other.

Pros of Amazon Seller Central

Pricing Decision

As a seller, you can decide the price at which you want to sell your products and also change them anytime as you have full control over pricing. You also get the advantage of staying in the competitive market by automatically matching your competitor’s pricing.

Activity Analytics

With Seller Central, you get access to a large number of consumer data without any cost. If you have a seller account, you can access the customer’s data and use it for other purposes. But make sure that you won’t use that data to outreach Amazon’s customers. You can, of course, use analytics to understand consumer behaviour.

Private Label Branding

This is one of the big advantages of seller central. As a retail partner or an unknown third-party seller of a manufacturer, you can’t list or sell a bundle of older versions of any product. Another parameter of this type of listing is less content and images. With Amazon’s brand registry program, this type of unauthorized listing can be controlled.

Cons of Amazon Seller Central

Higher Costs

If you are a seller and you are selling low-priced items, \ shipping or fulfilment costs are a barrier in your Amazon selling business. If you have a professional seller account, you have to pay $39.99 per month as Amazon FBA fees, and for individual sellers, it ranges from 45 cents to $1.35 per unit.

Lower Conversion

As a third-party seller, the most crucial part of your Amazon selling business is to compete with “Ship from and Sold by” products. As a 3P seller, you have to offer your products via FBA or “Ship from and Sold by 3P sellers” and with this, you can’t outsell the products sold by Amazon. One more disadvantage is that if you are attempting to use Amazon’s Sponsored Products Ad Tool, your ads won’t appear because this is only for the seller in the buy box.

Pros of Amazon Vendor Central

Ease of Doing Business

Through Vendor Central, you can focus on your Amazon selling business. If you see the business model from the Vendor Central perspective, the process is much easier than seller central. The role of a vendor is to fill purchase orders, bill those orders, and make sure that there is no penalty charge. But as a seller, you have to take care of the full process from sales to lost inventory and also taxation liabilities.

Marketing Tools

There are many tools that Amazon offers to its vendors like creating enhanced brand content via Amazon A+ Detail Pages. Another program you can take part in, Subscribe & Save (Amazon’s subscription service), is a promotional program offered by Amazon that boosts sales. You can also opt for Amazon Vine, which invites some of its most trusted reviewers on Amazon to post reviews about new and prior products to help their customers purchase products.

Cons of Amazon Vendor Central

Difficult to Launch New Products

There are many guidelines you have to follow to complete your purchase orders through Vendor Central. You may get penalties if you break the rigid guidelines given by Amazon for vendor central. There are many penalties vendors are charged while selling products through vendor central. If you are a vendor and selling through vendor central, it will be difficult for you to launch new products as Amazon does not prefer products with no sales history. Amazon doesn’t get any commission when they buy products from you so it is hard to sell or launch new products through Vendor Central. Amazon is unsure about the sales performance of the product and if the product is right for the target market or not.

What If I Want My Vendor Central Account Managed Efficiently?

Are you new to Amazon and confused about becoming either a seller or a vendor? Or are you a well-established Amazon seller and want to expand your business further into vendor central? If you’re unsure about joining the Vendor Central bandwagon because you’re clueless about managing the account, you’re not alone! Vendor Central is a goldmine, and to establish your e-commerce business, you can hire efficient VA services, to help manage your brand and enhance your Amazon store.

BIE’s amazon human resources for your Amazon marketplace have been structured to provide instant business value on a single platform so you can enhance your brand’s digital footprint. Being a multi-skilled resource, our Amazon Human resources can efficiently handle different aspects of your store, provide current analytical feedback for your product listings, and correspond in a smart way to boost positive feedback from your customers.

BIE is a Vancouver, British Columbia-based agency providing human resources to manage all things Amazon.

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