There are a number of ways to make money on Amazon, but one way is by selling your products directly. You can also choose to sell your products directly to Amazon, which will then sell them for you. Both the options have their own benefits and challenges.
An Amazon seller and an Amazon vendor are two different things and each of them has its own dashboard and resources.
You’ve got a tough choice on your hands. Which one should you use? Let's take a look at the key differences between them and see if that helps!
Amazon Sellers vs. Amazon Vendors
If we briefly highlight the difference between the two, then it all boils down to who’s actually selling the product.
Sellers are in complete control of how their products are marketed, promoted, and sold. They're also able to set all pricing terms themselves which can make a big difference when it comes down to deciding whether or not you want something listed on Amazon.
Vendors sell to Amazon employees who then re-list the goods on Amazon for sale with a higher profit margin than usual because they have more control over what gets sold on Amazon.
PROS AND CONS OF A VENDOR CENTRAL
Here we’re going to highlight the main pros and cons of a Vender Central. Let’s begin with the Vendor Central Pros.
Vendor Central Pro: Products Are Sold by Amazon
The Amazon seller program, Vendor Central is a great way for vendors to increase shopper trust and confidence. Sellers can join via an invite from the corporate team which will list their products as “sold by amazon” - likely giving them more visibility in shoppers’ eyes!
Vendor Central Pro: Added Marketing Opportunities
Being an Amazon Vendor is a great way to get your products in front of millions without spending too much time and money on it.
As an Amazon Vendor, you can enjoy added marketing opportunities through AMS (Amazon Marketing Services) which will help promote sales like never before! You are only responsible for the back-end of your supply chain - inventory management software or billing discussions if applicable.
Vendor Central Pro: Avoid Amazon Seller Fees
Vendors can avoid the typical Amazon flat fee of $39.99 per month for selling unlimited products and fulfillment. Sellers also have options to purchase gift wrapping supplies as well!
Vendor Central Con: Inconsistent Profit Margins
Since Amazon is in charge of pricing, there are no minimum profit margins for vendors. This means that a seller could technically even lose money by lowering their price too much on some items!
Vendor Central Con: Improper Stock Levels in Inventory
New Amazon vendors face high-stakes logistics concerns. The company can be demanding when it comes to inventory and order fulfillment, making them a tough sell for many businesses that are already struggling in this competitive market space.
Vendor Central Con: Difficulty in New Product Launches
If a vendor creates something unique and innovative, it can be difficult for them to succeed through Vendor Central alone. It leaves many promising but poorly-known vendors in an awkward position - not being able to make sales solely on Amazon's unwillingness or inability to take risks when there are so few opportunities available!
PROS AND CONS OF A SELLER CENTRAL
Here we’re going to highlight the main pros and cons of a Seller Central. Let’s begin with the Seller Central Pros.
Seller Central Pro: Greater Control Over Several Factors
The work may seem more challenging, but sellers have a bit more control than their vendor counterparts. Sellers will need to pay various fees per item and sale while they manage pricing themselves if they don't want fulfillment services like FBA (fulfillment by Amazon).
Sellers on Amazon also have more control over their customers, promotions, and the number of units they want to sell as compared to vendors who sell items to Amazon.
Seller Central Pro: More Detailed Analytics
With Seller Central, you can see how many customers are satisfied with your business by looking at detailed analytics. You will also be able to control their returns and boost sales by heading off unhappy clients directly!
By using pricing control, a company can take advantage of high-demand periods and offer sales. This will help them stay competitive in the holiday season!
Seller Central Con: Not “Sold by Amazon”
Many sellers choose to sell on Amazon without the "sold by amazon" endorsement. They find that it’s more flexible and they can still make money through this program, even though buyers may purchase more when they see "sold by amazon" endorsement.
Wrapping Up: Amazon Seller Central vs Vendor Central
Becoming an Amazon Vendor is a great opportunity who want their products in front of a lot of people. Though there are some drawbacks, you should evaluate these pros and cons before deciding which one to choose.
If you're just starting out as an e-commerce merchant, then it might make sense for your business to use the Vendor Central option. This way there are no upfront costs and everything can be done through one platform with ease of access across all devices - including mobile!
But if you have more resources at hand or would rather take charge of how things get done around you should go for Seller Central services. It offers complete control over pricing policies and several other factors like customers, promotions, and the number of units they want to sell.
If you’re seeking more help related to Amazon Vendor Central or Seller Central, reach out to us.
