Krolog, a leading Amazon Service providing agency, offers professional full account management services for both Vendor Central account management as well as Amazon Seller Consulting services to help brands succeed on Amazon.. Sellers must understand the difference between the two to select the right business approach to sell on Amazon. So, if you’re an Amazon seller who is unclear about the similarities and differences between these two selling models on Amazon, stay with us right here, as this article will help you discover just that!
Overview of Amazon’s Marketplace Structure
The basic difference between Amazon Vendor Central and Seller Central is that vendor account holders are manufacturers or distributors who sell to Amazon, and Amazon further sells these products to customers. Seller Central, on the other hand, sells to customers directly as third-party sellers. Each business model has its own set of advantages and challenges. Let us discover what they are:
Amazon Vendor Central vs. Amazon Seller Central
| Feature | Vendor Central | Seller Central |
| Who You Sell To | Amazon (wholesale model) | Customers (retail model) |
| Control Over Pricing | Limited as Amazon sets prices | Complete Control |
| Inventory Management | Amazon handles inventory | Seller manages stock |
| Marketing and Promotions | Limited Control | Full control over account management |
| Fees and Margins | Lower margins due to wholesale pricing | Selling price, higher margins |
| Order Fulfillment | Amazon fulfills the orders | Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM) |
Importance of Choosing the Right Platform
Choosing the right business model for your Amazon setup depends on various factors such as business size, goals, and the level of control you would want to practice on pricing and selling.
Where Vendor Central is ideal for sellers who want less hands-on management and prefer a wholesale business model, Seller Central is suited for sellers looking for high profit margins, marketing flexibility, and price control.
What is Amazon Vendor Central?
Amazon Vendor Central is a first-party selling model where distributors and wholesalers sell directly to Amazon, who further sells the products to customers under its own name.
Key Features of Vendor Central
- Invite-Only Access: Vendor Central is based on invitation, which implies only brands and manufacturers invited by Amazon are eligible for a Vendor Central account.
- Bulk Selling: Vendors selling to Amazon as wholesale suppliers sell quantities in bulk.
- Pricing is controlled by Amazon: The retail prices are determined by Amazon, which impacts the margins.
- Inventory and Fulfillment: Inventory, stocks, warehousing, and shipping are all managed by Amazon.
What is Amazon Seller Central?
Amazon Seller Central is a third-party selling model where sellers sell directly to customers as third-party sellers.
Key Features of Amazon Seller Central
- Open to all sellers: Amazon Seller Central is open to all sellers, and anyone can start selling on Amazon by creating an account.
- Direct-to-consumers sale: Sellers directly sell to customers and have greater control over pricing, marketing, and customer service.
- Fulfillment options: Fulfilled by Amazon (FBA): In FBA, Amazon stores, packs, and ships the order to the customers while also handling customer service.
- Fulfilled by Merchant (FBM): Sellers are responsible for the order fulfillment and handling storage, packaging, and shipping of the products.
- Greater Control: Sellers enjoy greater control over pricing, branding, marketing, advertising, and promotions.
Amazon Seller Central vs. Vendor Central: The Pros and Cons
Amazon Vendor Central
Pros
- Amazon places bulk orders, which ensures consistency in sales.
- Fulfillment, logistics, and customer service are completely managed by Amazon.
- As products are “Sold by Amazon,” the credibility of the products increases.
Cons
- Limited control over product pricing can negatively impact margins.
- As Amazon pays on its terms, there may be longer payment terms.
- Amazon’s policies are strict, and negotiations may be complex to work around.
Amazon Seller Central
Pros
- Sellers have greater control over branding, advertising, and product pricing.
- Seller Central allows flexibility in choosing fulfillment methods.
- Direct payments by customers increase cash flow.
Cons
- Requires active management as everything is managed by sellers themselves (from branding to advertising)
- Amazon is a crowded marketplace, and sellers have to compete hard with other third-party sellers to capture buyers’ attention.
Which One Is Right for Your Business?
When to Choose Vendor Central
- If you’re a wholesaler or a manufacturer and can manage bulk and high-volume orders, Vendor Central could be the right option for you.
- If you want to adopt a hands-off approach to branding and customer service, Vendor Central is an ideal option for you.
- Vendor Central offers minimal day-to-day management and involvement and focuses on mass-market exposure.
- Vendor Central is also a great model if you want your products to get Amazon’s credibility.
When to Choose Seller Central
- Seller Central is the perfect business model for sellers who want complete control over their brand, pricing, and customer relationships.
- If you’re looking for higher profit margins and greater cash flow, Seller Central is for you!
- Seller Central offers higher flexibility in fulfillment options between FBA and FBM, so you get to choose your fulfillment option.
How Krolog.com Can Help
Krolog, a leading Amazon Service providing agency, offers professional full account management services for both Vendor Central account management as well as Amazon Seller Central management to help brands succeed on Amazon.
Our services include:
- Listing optimization – Improve product reach and visibility with our expert listing optimization services.
- Amazon SEO services – Help your products rank higher on Amazon SERP with our top-notch SEO services.
- Fulfillment Strategies – Get expert guidance on managing FBA.
- Branding Services – Create an engaging brand presence on Amazon with our creative branding services.
- Account Health Management – From product launch to account health monitoring and optimization, we do it all!
So if you’re an Amazon Seller looking to scale your Amazon Business or want to get an invitation from Amazon to become an Amazon Vendor, trust Krolog with your account management and watch your business grow! With our expertise and experience in understanding Amazon policies and operations, we ensure your business grows and leads the market.
To know more, connect with us at:
www.krolog.com
857-557-6564
info@krolog.com
