Vendor Central vs Seller Central in 2020: What’s best for your brand?

January 9, 2024 Amazon Vendor Central vs Seller Central: Choosing the Right Platform for Your Business

Are your products flying off the shelves on Amazon?

Have you received inquiries from Amazon buyers about selling through Vendor Central?

Are you a vendor seller feeling frustrated and considering transitioning to Seller Central?

Are you an Amazon seller or vendor trying to decide between Amazon Vendor Central vs Seller Central?

Amazon takes care of the shipping logistics on your behalf. When selling on Amazon, you have two options: Seller Central and Vendor Central.

In this article, we will compare Amazon Seller Central vs vendor central to understand the key factors to find the right path for your product and brand.

The fundamental difference between Amazon Vendor Central vs Seller Central is who will sell your products. Vendor seller can sell their products directly to Amazon. And with Seller Central, you can sell your products directly to Customers.

Both platforms offer distinct features that cater to traders with specific markets in mind.

Choose the right Amazon platform and embark on a successful e-commerce journey today!

Let’s dive in!

What is Vendor Central?

Maximize your efficiency with Amazon Vendor Central!

Amazon Vendor Central (VC) is a program designed for vendors who want to sell their products directly to Amazon.

By partnering with Amazon, vendor seller can access a wide range of advantages, from Amazon’s expansive customer base to the company’s sophisticated logistics capabilities.

Vendor Central is ideal for vendors who want to work collaboratively with Amazon. Amazon will purchase products from vendors and then resell them on its platform.

Vendors can also access Amazon’s marketing tools and leverage its vast customer base.

What is Seller Central?

The Short List:

Start your entrepreneurial venture on Amazon today and unleash your selling potential!

Here is a short list of Amazon vendor central vs Seller Central so that you can choose the best fit for your business.

Amazon Vendor Central vs Seller Central

Amazon Vendor Central

Amazon Seller Central

Invite only

Open to anyone

Brands can only sell to Amazon 

Brands can sell products direct to customers

Retail pricing is controlled by Amazon

Retail Pricing is controlled by Sellers

Amazon handled fulfillment

Sellers get flexible fulfillment

Traditional sales process

Complex sales process

Get several ads options

Get limited ads options

Get A+ contents

Limited brand content

Amazon vendor central vs Seller Central: which one is the best?

Amazon Seller Central Pros:

To make Amazon Vendor Central vs Seller Central easier, let’s discuss the Seller Central pros as well. 

Analytics: Seller Central makes a significant amount of consumer data freely available. While remarketing to Amazon customers is strictly prohibited, this data is too useful to understand better who is buying what products and where.

Price Control: As a reseller, you can control retail prices to maintain retail prices for other trading partners. You can also automatically adjust competitor prices to stay competitive.

Verification of reports: Producers frequently discover that unlicensed reseller partners and unidentified third parties offer and sell bundles or earlier iterations of their items. A Seller Central account that is registered in the Amazon Brand Registry is the only means to manage these unauthorized listings.

Amazon vendor Central Cons:

It’s also important to check the cons to understand Amazon vendor central vs seller central.

Controlling in Price:

Amazon does not strictly adhere to the manufacturer’s reserve price policy. Amazon can adjust its selling prices anytime based on its internal algorithms. 

Logistical needs

Amazon has particular and strict order processing policies. Sellers who struggle to maintain inventory levels or fill orders quickly can suffer significant chargebacks that can eat away at Amazon sellers’ profits.

No diversification of distribution channels

In many cases, Amazon is the leading buyer of many sellers. It is also risky for sellers to rely on a single buyer. Experienced retailers want multiple sales channels, and most purchases are made through their online store. 

In early 2019, Amazon suddenly stopped buying from several sellers without warning or explanation. This major Amazon vendor central vs seller central has meant many retailers have needed help to make up for lost sales.

Loss of control of the brand

Amazon sellers need more control over their brand messaging when selling to Amazon through the Vendor Central program. 

Sellers are losing control over how their product is presented on the Amazon marketplace, products are shipped in an Amazon Brown Box, and the Seller’s ability to personalize the buyer’s experience is limited.

When you understand the Amazon vendor central vs seller central cons as well, you will be able to choose the right path according to your needs. 

Amazon Seller Central Cons:

Let’s dive Seller Central cons to understand Amazon vendor central vs seller central properly.

Fulfillment Fees

You may occasionally be limited in your capacity to sell things on Amazon for less money due to fulfillment and delivery fees. The current minimum fee for non-media FBA items weighing one pound or less is $2.41, which excludes Amazon’s fee.

These might add up quickly depending on the size and weight of the things you sell. The Amazon FBA cost should be well-known to you and taken into consideration when making decisions.

Compared to Amazon vendor central vs seller central, this cost is higher. 

Sales and Marketing

As with any standalone store on the Amazon marketplace, the Amazon seller must continually manage the store by updating the product description, promoting their products in different ways, and adapting to consumer behavior.

Registration fee

All products sold through the Seller Central program are subject to a referral fee to Amazon for each item sold. This cost is the percentage of the selling price of the products excluding taxes. 

These fees vary by product category and range from 5% to 20% of the retail price. Commissions can range from 30% to 45% but are typically related to Amazon products or services, including accessories for Amazon devices. 

We have discussed all the pros and cons between Amazon vendor central vs seller central. Now you can easily get the positive and negative points towards these platforms. 

Comparing Amazon Vendor Central and Seller Central: Choosing the Right Platform for Your Business

Can I get the benefits from both platforms?

Absolutely! You have both options.

No need to choose Amazon Seller Central vs Vendor Central, and Amazon also provides you with a third alternative: Amazon Vendor Express. 

This platform bridges the two previously mentioned possibilities, allowing you to obtain the advantages of both worlds simultaneously. It’s an excellent opportunity to optimize your selling experience and make the most out of Amazon’s diverse offerings.

However, let’s discuss the significant advertisement difference between Amazon vendor central vs Seller Central.

How do I start with these platforms?

People need clarification on Amazon Seller Central vs vendor central, especially when starting with these platforms.

Let’s start!

While discussing Amazon vendor central vs seller central, Seller Central provides a more straightforward option for starting your business, especially if you’re starting. 

Anyone can quickly sign up and create a Seller Central account. On the other hand, to access Vendor Central, you need to be invited by Amazon.com. 

These invitations are typically extended to established businesses and big brands. If you’re ready to jump in, you may also get in touch with Amazon and ask for an invitation.

Eligibility for an invitation is usually determined by your sales performance and meeting other notable requirements.

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How to Choose a 3PL for Your Amazon Business

Which platform will help me maximize my profits: Amazon Vendor Central vs. Seller Central?

Hey fellow sellers! Are you getting confused between Amazon vendor central vs seller central and don’t understand which gives you the maximum profits.

Regarding Amazon Seller Central, the potential for high margins is significant as you are directly involved in the sales process. By eliminating intermediaries and taking control of the sales, you can manage the Pricing and enjoy higher profit margins.

On the other hand, with Vendor Central, brands sell their products to Amazon in bulk, and Amazon determines the profit margin. While this reduces your workload, it may also result in a comparatively lower profit margin.

However, while discussing Amazon vendor central vs seller central, Vendor Central is more suitable for bulk traders if you’re an individual seller with individual clients and Amazon takes care of shipping. 

In summary, both Amazon Vendor Central vs Seller Central have their advantages. Seller Central allows for greater control and potentially higher margins, while Vendor Central is ideal for bulk traders with reduced stress and Amazon handling the shipping.

Which option do most traders prefer: Amazon Vendor Central vs. Seller Central?

In terms of popularity of Amazon vendor central vs seller central, the majority of traders opt for Seller Central. It is the most commonly used platform on Amazon due to its easy setup. 

On the other hand, Vendor Central is a premium program with certain paid features, catering to brands and established companies. Seller Central, in contrast, attracts those seeking new opportunities.

Do I receive any exclusive benefits from Amazon vendor central vs seller central?

Between Amazon vendor central vs seller central, Vendor Central offers exclusive benefits to its subscribers as part of the premium program.

One such feature is Vine, which allows for expert reviews of your products, enabling effective pitching to consumers.

Additionally, Subscribe and Save features make it convenient for buyers who wish to purchase your products.

Amazon vendor central vs seller central: who will assist me in selling my products?

Amazon offers a range of support mechanisms for sellers, irrespective of whether they utilize Amazon Vendor Central vs Seller Central.

Amazon Better Advertising:

Vendor Central products receive priority from Amazon due to their premium membership and the reputation associated with established brands when it comes to exposure and advertising of individual products. 

In comparison Amazon vendor central vs seller central, Seller Central products face a more challenging task in terms of advertising.

To succeed on Amazon’s Seller Central, it is essential to have a strong launch strategy and secure positive reviews from buyers.

Amazon Product Shipping:

In comparison Amazon vendor central vs seller central, Vendor Central takes care of the entire shipping process. In Seller Central, the merchant can handle shipping themselves or strike a deal with Amazon and utilize FBA, where Amazon manages the shipping.

Amazon Analytics:

Information and data play an important role in selling on Amazon vendor central vs seller central. In Seller Central, you can access Amazon’s customer data to study competitors and enhance your product sales.

This Amazon vendor central vs seller central provides insights into who is purchasing specific products and where. Seller Central also offers reports on payments, tax documents, and recommendations for growing your business on Amazon.

Performance checks in Seller Central provide metrics on customer service, feedback, guarantee claims, performance notifications, and chargeback claims.

In summary, Amazon Vendor Central vs Seller Central, both offer unique advantages, and the choice depends on your business needs.

What merchant status do I have if I choose Amazon vendor central vs Seller Central?

Sell your products in Seller Central directly to customers searching on Amazon. This benefits all attention flocking to purchase products on Amazon. 

In comparison Amazon vendor central vs seller central, Vendor Central products are bought in bulk from Amazon, so most things about the product are controlled by Amazon.

The benefit of selling through Vendor Central is that customers trust your product more than the merchant sells directly through Seller Central. In Vendor Central, the item is considered “Sold by Amazon,” but in Seller Central, it is considered “Sold by ABC, shipped by Amazon” if you choose to use FBA.

Research shows that items shipped and sold through Amazon.com sell better, and the Amazon brand helps the product itself.

What autonomy can I expect on these platforms: Amazon Vendor Central vs. Seller Central?

In Seller Central, you have significant autonomy as most responsibilities lie with the trader. This includes managing Pricing, advertising, inventory, and fulfilling orders. 

On the other hand, in Vendor Central, a considerable degree of autonomy is relinquished to Amazon, as they buy products in bulk from the trader, taking over many of the operational tasks.

In comparison Amazon vendor central vs seller central, both are the great choice.

It’s worth noting that you can maintain both a Vendor Central and an Amazon Seller Central account simultaneously, which can be discussed during negotiations when signing the agreement with Amazon.

In summary of In comparison Amazon seller Central vs vendor central, Seller Central grants you greater autonomy over various aspects of your business, while Vendor Central involves Amazon assuming more responsibilities.

Which Platform is Right for You?

Whether you choose Amazon Vendor Central vs Seller Central depends on your business goals and resources. Vendor Central is ideal for vendors who want to work collaboratively with Amazon. Seller Central is best for entrepreneurs who want to take ownership of the sales process and build their businesses.

Regardless of the platform you use, Amazon provides a lot of chances to expand your business. You may maximize Amazon Vendor Central vs Seller Central’s potential with the appropriate tools and a well-defined plan.

Conclusion

Amazon Vendor Central and Seller Central are powerful platforms to help you grow your business. Vendor Central is ideal for vendors who want to partner with Amazon, while Seller Central is best for entrepreneurs who want to take control of the sales process.

Whatever platform you choose, Amazon can provide many advantages to help you succeed. With a clear strategy and the right resources, you can unlock the complete potential of Amazon Vendor Central vs Seller Central.

FAQ

Questions About
Amazon Vendor Central and Seller Central

What is the key difference between Amazon vendor central vs Seller Central?

The key difference between Amazon vendor central vs Seller Central is Vendors are first-party partners, and Sellers are third-party partners. Using Vendor Central, sellers sell products on the Amazon retail site for Amazon to sell to end consumers, playing the role of wholesalers.

What are the eligibility criteria for sellers to become Amazon vendors?

While discussing Amazon vendor central vs seller central, it’s important to understand the eligibility criteria. 

The Amazon Vendor Recruitment team looks for specific factors in sellers. Here is a list of those factors:

 

  • Existing Seller on Amazon: It is a prerequisite to already sell on Amazon.
  • High-demand items from established brands: Sellers who offer products that belong to famous brands in high-demand categories are preferred.
  • Excellent and stable sales: Consistent and satisfactory sales performance is crucial.
  • Favorable conversion rate and low bounce rate: High and low conversion rates for your products indicate customer interest and engagement.
Amazon vendor central vs seller central: which gives me immediate money?

For brands that don’t rely solely on cash from sales to stock up on the next batch of products on Amazon, smaller retailers want their money to come in quickly. 

In comparison Amazon vendor central vs seller central, the money comes quickly on Seller Central.

 

It will take up to 14 days, and the money will be given to you if you are a Seller Central subscriber. In the case of Vendor Central, however, the money from the sale goes to the retailer after about two to three months. So even after the last sale, the money takes about 60-90 days to arrive.

Amazon vendor central vs seller central: Who will set prices for Products if I sell my products on Amazon?

In Amazon Seller Central, the trader has complete control over pricing decisions. On the other hand, in Amazon Vendor Central, the Pricing is managed by Amazon after a mutual agreement is reached. 

This can be advantageous to choose Amazon vendor central vs seller central, particularly for newly launched products, as Amazon can strategically set lower prices or offer discounts during sales seasons to stimulate sales. 

It allows Amazon to control the sale price, thereby boosting overall sales. When comparing Amazon Seller Central vs. Vendor Central, the distinction in pricing control becomes apparent.

What products can be sold through Amazon FBA?

Before selling on Amazon, it’s important to get some knowledge of Amazon vendor central vs seller central and choose the right platform according to your product category.

You can sell almost everything through Amazon FBA such as 

  • Beauty Products
  • Kitchen Products
  • Mobile Phones
  • Toys
  • Personal Computers & Peripherals
  • Baby Products
  • Jewellery
  • Digital Accessories
  • Kitchen Products
  • Home Products
Do you require a certain number of orders per month?

 

It depends.

 

We value your business and like to make assessments on a case-by-case basis, so we can find the best fit for your requirements.

 

In most cases, if you’re doing over 100-200 orders per month on Amazon, you will qualify to use our Amazon FBA order fulfillment services. 

Didn’t find your answers? Contact us

Blair Forrest

Blair Forrest

Blair Forrest is the CMO of AMZ Prep. Blair helps provide consulting and guidance through our articles, guides, and other resources to help growing eCommerce & Amazon FBA businesses master their logistics and fulfillment.

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