A Starter Guide to Amazon Vendor Central
By Neil Patel
Becoming a third-party seller isn’t the only way to make money on Amazon.
What if I told you there’s a way to get rid of the bulk of your seller admin and focus solely on helping a single customer who will sell your products for you?
Well, that’s what you can expect from Amazon’s Vendor Central.
We’ll take a deep dive into the platform and discuss:
- What is Vendor Central, and how to get an invite.
- The main differences between Seller Central and Vendor Central.
- The benefits and disadvantages of becoming a vendor.
- How to measure your success on the platform and more.
Let’s get started!
What Is Amazon Vendor Central?
Vendor Central is an invite-only platform where you can sell directly to Amazon as a supplier. It’s similar to Seller Central, where vendors can manage their purchase orders and product data from one central hub.
If you get an invite and sign up, the process works like this:
- Amazon will place a purchase order with you.
- You’ll send the stock.
- Amazon pays you and is responsible for selling the items.
It’s a good option for businesses who don’t want to deal with selling directly to customers. However, the platform does have its challenges that you’ll need to consider when seeing if Vendor Central is a good fit.
Amazon Vendor Central vs. Seller Center
The main difference between Amazon’s Vendor and Seller Central platforms is: who is selling the product.
With Vendor Central, you are selling to Amazon directly, and they are reselling your goods.
With Seller Central, you sell directly to Amazon users.
Here is a more detailed comparison between the two accounts:
Vendor Central:
- invitation only
- you sell directly to Amazon
- Amazon controls the price of items
- fixed logistical options
- more advertising options
Seller Central:
- anyone can sign up
- you sell directly to customers
- you control the retail price
- flexible logistical options
- fewer advertising options
Advantages and Disadvantages of Joining Amazon Vendor Central
Before you sign up, consider the pros and cons to see if joining will positively or negatively affect your business.
Here are some of the advantages of joining the Amazon Vendor Central platform:
Consumer Trust
As an Amazon Vendor, the customer will feel more confident in purchasing the product. You get the benefit of Amazon brand name recognition, which instills trust and makes it easier to close the sale.
More Advertising Options
While Amazon Marketing Services (AMS) is available on Seller Central, you’ll have access to more features as a vendor. It will allow you to create even stronger ad campaigns and drive traffic to your product pages.
The Selling Process Is Simplified
As a Seller, you’re responsible for things like fulfilling direct customer orders, tax liabilities, lost inventory, and other business costs.
When you supply Amazon, your business model is simplified. All you need to focus on is fulfilling your purchase orders and billing Amazon. All of the other admin responsibilities fall away, and you don’t need to worry about servicing multiple buyers.
Exclusive Promotional Programs
Amazon Vendors have the option to participate in programs like Subscribe & Save and Amazon Vine. Access to these programs can help boost reviews, your placement in organic search, and lead to more …read more
Source:: Kiss Metrics Blog