Amazon is a widely known marketplace and an eMall, for both sellers and buyers. The number of sellers and buyers are increasing day by day and it is evident that sooner or later Amazon will be the largest online selling channel. Amazon services allow an easy way for sellers to sell their products and also handle all the hackles that are needed for the delivery of the products to the customers. For retailers, it is the first choice these days as well.
Amazon has various modes and channels in which a seller can sell their products :
Amazon Vendor Central :
An Amazon vendor acts as a vendor or supplier and directly supplies products to the different warehouses at Amazon. An Amazon Vendor is an Invite-Only program in which Amazon selects sellers from Amazon Seller or Central or outside and asks them to supply goods directly on certain terms and methods. After the delivery of the product, Amazon sets its marketing strategies and schemes to sell out the product on Amazon.
Advantages of Selling as Amazon Vendors :
- Hassle-Free product sales.
- Good for Inventory forecasting.
- Display of products managed by Amazon. (e.g.: Subscribe and Save program)
- Inventory Projection mechanism which is not available in Seller Central
Amazon Seller Central (3rd Party Sellers) is an online ecommerce platform used by sellers to sells their products directly to Amazon’s customers. To sell on Amazon you can directly register on the website and start selling. Most of the Amazon products that are listed on the website are from the Amazon 3rd Party Sellers.
Advantages of Selling as Amazon Seller Central :
- Direct Exposure: Millions of customers can recognize a brand and its product directly and can have an influential sell on Amazon for those returning as well as new customers.
- Enjoy Marketplace Features: Amazon’s Marketplace is a shopping mall that is known for reliability, ease of online shopping. Product Listing and Management on the Marketplace will allow you to enhance your branding.
- Quick Sales Growth: Buyers on Amazon have come to the website with the only desire and intent to buy, or at the very least are looking to browse. Amazon customers are more likely to buy products rather than looking into advertisements and getting distracted.
Here’s a comparison:
|Amazon Seller Central
|Amazon Vendor Central
|Open to Anyone
|Traditional Payment Terms
|More control over inventory and pricing
|Less control as Amazon decides.
|Potential for Higher Margins
|Potential For Lower Margins
|Limited Marketing and Promotional Activities
|Access to Amazon Marketing and Promotional Programs
Once you are ready with the decision of which method you will adopt for selling, you will need to select among the two popular Seller Central channels and can enjoy both methods of fulfillment. Amazon provides you with three options for fulfilling Amazon orders:
- Fulfillment by Amazon (FBA)
- Fulfillment by Merchant (FBM)
- Seller Fulfilled Prime (SFP)
Fulfillment by Amazon (FBA): You send your products to Amazon. They take care of the products sent to them in their warehouses. When someone orders the product, Amazon packs and ships the product on behalf of you. They also handle returns and refunds.
Fulfillment by Merchant (FBM): It is a fulfillment method in which an Amazon seller is responsible for fulfilling its products purchased on Amazon. It can be managed through a seller directly or by partnering with a third-party logistics (3PL) providers like Shipstation.
Seller Fulfilled Prime: It is the Prime program that allows you to deliver directly to domestic Prime customers from your own warehouse. By displaying the Prime badge, you are committing to fulfill orders with Two-Day Delivery at no additional charge for Prime customers. Amazon gives you access to the right transportation solutions to help you meet the high bar for the Prime customer experience.
Do not confuse FBA with Vendor Central:
FBA does look like Amazon Vendor Central but it doesn’t come with any of the agreement to Amazon – it is just a fulfilling method in which Amazon charges some extra fee in lieu of delivering your product, whereas Amazon Vendor Central works in a traditional way of a deal between a seller and Amazon.
Now, you can easily connect Amazon Seller Central with all your business applications under one single platform to automate the business process!