First off, congrats on choosing Amazon as a platform to sell your respected
products. Did you know that choosing the right sales platform on Amazon can help
you generate massive profit? Do you know what is Amazon Vendor Central? Are
you looking to switch to Vendor Central from Seller Central or vice-versa? If you
are unsure about your decision, then this article will indeed work as a goldmine for
you. We will help you understand which central will be the most suitable for you
according to your business need.
Let’s begin step by step and know which ‘Central’ is best for your business on
Before going any further, we need to know the key difference between Vendor
Central and Seller Central. Amazon’s Vendor Central is a platform that lets you
directly sell your products to Amazon’s retail team. Now, these products are sold
again to the end user by the Amazon’s team. On the contrary, Seller Central
enables you to sell your products and services directly to the end user via Amazon.
Moving on, let’s know more about Vendor Central and Seller Central and how
they work for your business on Amazon.
Understand What Is Amazon’s Seller Central and Its Benefits?
It is a powerful web interface that helps merchants directly sell their products to a
massive number of Amazon’s customers worldwide. In other words, it’s a bridge
that helps merchants connect with their prospective customers without any hassle.
Under this account, retailers are known as marketplace or third-party seller. They
may sell their own brands as well as the ones owned by other manufacturers. Being
a seller under Seller Central account, you are provided with two options to
complete orders received on Amazon. They are as following:
Being a seller in this program, you manage various parameters related to
product delivery/shipping, product return and customer service on your own.
You avail Amazon’s assistance to handle shipping, product return and customer
service. For this service, you are required to register your products under
Amazon’s exclusive program, namely Fulfilled by Amazon (FBA).
Know What is Amazon’s Vendor Central Along with its Benefits?
Exclusively designed for manufacturers and distributers, this web platform
facilitates you to sell your products as a first party seller on Amazon. Here, you
will act as a supplier to Amazon and sell your products in bulk. If you are looking
to enrol for this program, you must need an invitation from Amazon.
So far, we have learned the basics of Vendor Central and Seller Central. Now, we
will further drill down the Vendor Central and Seller Central on various aspects.
Let’s start from Seller Central account.
Seller Central Account – Advantages
Registration: Everyone can register on Seller Central without invitation.
Product Sales: It lets you sell your products directly to Amazon’s customers,
which somehow quickens the process.
Elasticity in Logistics: It allows you to avail flexible options pertaining to
Quick Payments & and Elasticity in Logistics: Direct connect with the end-user
makes the payment processing quicker. Moreover, flexibility in logistics helps you
complete your orders on time.
Better Control Over Data: It is extremely advantageous to capture a massive data
of consumer without any extra charge. Under Seller Central account of Amazon,
you can access this data, which can be used for multiple purposes. It can certainly
be helpful to study the market trend to improvise your products and services to the
Price Customization: In order to stay ahead in today’s competitive world, you
need to be highly flexible in the market. Seller Central account allows you to
harness retail pricing, which helps you beat the market’s competition on various
sales channels. Beyond this, it enables you to check the prices offered by your
competitors to streamline your own business strategies.
Seller Central Account – Limitations
Tough Competition: In order to sell via Seller Central account, all you need is the
inventory. And, you are all set to become a third-party seller on Amazon. But, it is
hard to compete in the market, if you have a Seller Central account as you need to
manage various sales parameters on your own. Moreover, you become Amazon’s
competitor by selling your products under this account. Here, the prices of your
products may vary with the ones sold by Amazon directly. Hence, if you are
competing against Amazon, beating competition will be a tough nut to crack.
High Fulfilment Cost Factor: A maximum number of online users are in search
of cost-effective products. In other words, fulfilment or shipping cost plays a vital
role in the overall business process. And, if it is high, you will not be able to sell
your products at economical price. Hence, high fulfilment cost in Seller Central
account can make it tough for you to compete against your opponents.
Manageability Issues: In the Seller Central account, you need to manage product
shipping, pricing, setting competition strategies and other activities on your own.
Therefore, you need to be extra careful on every aspect pertaining to sales and
inventory management, as a tiny mistake can make you lose business.
Moving forward, we will understand the advantages and disadvantages of
Vendor Central account.
Advantages of Vendor Central
Hassle Free Business Flow:
Irrespective of the type of business, the main goal of any entrepreneur always
remains the same. Yes, that is maximum sales number, revenue and minimum
charge backs. Vendor Central account helps you generate sales in large volume, as
it lets you sell your products in bulk. If you have a limited time to devote on
managing marketing and sales activities of your products, Vendor Central account
is more suitable for you.
Cutting-edge Marketing Apps and Content:
Amazon helps you create high quality content via its A+ detail pages, which is
extremely useful to generate massive sales numbers. Additionally, you also get an
opportunity to participate in various promotional programs such as ‘Amazon
Vine’, ‘Subscribe & Save’, etc. Some of these programs facilitate you to get your
products reviewed by the top reviewers on Amazon to help you quickly promote
your brand online.
Power Packed Products by Amazon Marketing Services (AMS): AMS is a
platform that lets sellers empower their sales through digital marketing. It enables
them to boost the visibility of their brand via Ad campaigns, dedicated landing
pages and other related strategies. Using AMS aptly leads to improvised sales.
Amazon Vendor Central Disadvantages
Reduced Profit Margins: If you are selling your products via Amazon’s Vendor
Central account, you must be good at analysis. Amazon has employed super
intelligent professionals in their purchase department. These individuals are
capable enough to perform good bargaining while making any deal with you.
Hence, the lack of negotiation skills can make you lose money in your business.
It is known that Amazon honours the Minimum Advertised Price (MAP) requests
from its Vendor Central partners. You must be wondering what is minimum
advertised price or MAV – right? It is the lowest price to be advertised by resellers.
Hence, they cannot advertise the price of their products below MAV.
But, it is found that a huge number of partners are not satisfied with it. Hence,
Amazon doesn’t seem to be too serious about implementing Minimum Advertised
Pricing (MAP) guidelines. Hence, Amazon modifies the retail pricing at any time
according to its internal data, which can be a major problem for Vendor Central
In respect to filing purchase orders, Amazon’s guidelines are not up to the mark.
So, if a vendor is unable to maintain the required stock, he/she needs to be ready
for the charge backs.
Why the Right Decision is Important among Vendor Central and Seller
The success of your business entirely depends on its strategies. Studies reveal that
a huge number of shoppers prefer to choose Amazon for shopping as compared to
any other online platform. Thus, it certainly has a scope to do more as a seller. So,
evaluating your sales strategies carefully can certainly help you choose the best
option between seller central and vendor central. This is all you need to stand
sturdy in sales.