Are you ready to launch your brand or business on Amazon but aren’t sure how exactly to get started?
The first thing to understand is the two different ways you can sell on the Amazon marketplace.
In this video you’ll learn:
- What is the difference between Amazon Seller and Amazon Vendor accounts?
- What is better for YOUR business?
- Can you do both?
The biggest factors to consider include:
Watch the video to learn about Amazon Seller vs. Amazon Vendor – Which is Right for Your Business?
AMAZON SELLER VS VENDOR – WHICH IS RIGHT FOR YOUR BUSINESS?
If you are thinking of selling your products on Amazon, you may have come across the two terms Amazon seller and Amazon vendor. These two terms may look similar but are very different. We’ll help you understand the difference between Seller Central and Vendor Central and what type of Amazon account is right for your business.
AMAZON SELLER CENTRAL VS AMAZON VENDOR CENTRAL
The main difference between seller and vendor is who is selling your product to customers. As a seller, you are selling your products directly to the customer as a third party seller, or 3P. As a vendor, you are selling your product in bulk to Amazon who then sells the product to the customer. In this case, you are a first party seller, or 1P.
WHICH IS RIGHT FOR YOUR BUSINESS – SELLER CENTRAL OR VENDOR CENTRAL?
If you own a small business, a Seller Central account is the better option for you. There are several reasons for this, but two of the biggest reasons are control over pricing and control over inventory. As a Seller, you control the price of your products and the amount of inventory you have in stock. Setting up inventory in both FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) will ensure you never run out of inventory on Amazon.
With a Vendor Central account, you have no control over the pricing of your products. Once you’ve sold your product to Amazon, Amazon will set the price and they will often match the lowest price regardless of MSRP. You also run the risk of going out of stock if you’re unable to keep up with Amazon’s inventory demands.
As a Seller, you have control over your brand and customer service. By utilizing Amazon tools or even third party tools, you are able to interact with your customers and gather feedback on your products. You can even ask your customers for reviews as long as it abides by Amazon’s policies. As a vendor, you have no way to interact with your customers or control the way your brand is perceived, yet you are still responsible for your product listings, content and marketing.
Now, there are some advantages to having a Vendor Central account, especially if you’re a larger company or netting upwards of $20,000,000 a year selling on Amazon. There are definitely some perks offered to vendors, but at Masters of Marketplace, we’re focused on small to medium sized businesses and we highly recommend choosing a seller account if you fall into that category.
CAN YOU SELL ON BOTH AMAZON SELLER CENTRAL AND VENDOR CENTRAL?
Technically, yes you can sell as both a seller and vendor. If you are already selling as a vendor and want to dabble in being a seller, we highly recommend you do this – just be careful not to compete with yourself. But if you are already a seller, we recommend that you remain a seller, as this is the best option for your small business on the Amazon marketplace.
If you’d like to learn more about selling on Amazon or offering it as a service to others, you can subscribe to my YouTube channel to see the videos I post each week.
I’d also love to see you in the Masters of Marketplace Member Site where we discuss all things Amazon all day long!