What is Amazon Seller Central & What’s the benefit of Amazon Vendor Central?
Last Updated on July 30, 2022 by
Amazon is one of the largest online marketplaces and has over 9.5 million sellers worldwide, of which 1.9 million are vigorously selling on the marketplace. Now, understanding the clear distinction between the Amazon Seller Central and Amazon Vendor Central is required for all types of businesses and individuals who want to expand their markets and explore new opportunities and avenues.
Amazon has the widest customer and global reach and even handles the shipping for you. There are two ways you can sell on Amazon Seller Central and Amazon Vendor Central. Amazon has many user-friendly features both for buyers and sellers to sell their products on the website. The decision to approach Amazon is a very significant task for traders and buyers.
Nowadays, buyers prefer visiting Amazon directly to buy any products. Maybe a product is very good in quality, but marketing strategies and a high launch plan are extremely important for any product to make the product shine among the other products. With the right strategy, one can sell products online and Amazon Central gives the right platform.
Selling any products via Amazon comes with a multitude of Amazon fulfillment options, of which is deciding between Vendor Central or Seller Central.
The most essential difference between Amazon Vendor Central and Amazon Seller Central is the point of contact that helps to sell products. Vendor Central means Amazon buys products from us, then resells them to their customers. The Seller Central means we are selling our products directly to customers, by using the Amazon Marketplace.
What is Amazon Seller Central?
Amazon Seller Central works as an interface that is used by merchants to market and sells their products directly to the customers within Amazon. An Amazon Seller Central account is considered a marketplace or third-party Amazon seller (3P). The Amazon seller is responsible for setting up and maintaining their seller account.
Amazon also offers both individual and professional seller accounts. On the other hand, the professional seller accounts require a monthly subscription; most businesses will opt for the professional seller accounts as it offers analytics tools, preferential marketing treatment, and also a slew of other features a professional Amazon seller needs to scale their business.
List of Amazon Seller Central Benefits:
- Open to anyone
- Control of the seller account
- Sell directly to Amazon’s customers
- Flexible logistical options
- Quick payment terms
- Brand controls retail pricing
- Limited advertising options
- Complex sales process
- Enhanced Brand Content
Amazon Seller Central Pros
- Analytical data
Seller Central offers a substantial amount of consumer data at no cost to the seller. One is allowed access to Amazon customer data that can better inform consumer and product trends like who is buying products and where they are located. This can be invaluable when determining a third-party logistic (3PL) provider; figuring out where it’s best to ship from, and splitting inventory across multiple fulfillment centers could help save money and reduce transit time.
- Pricing control
As the seller, one can control the price of the set, so if one is using other retail channels besides Amazon, one can maintain uniformity. Additionally, if anyone needs to change the price to match a competitor, that can automatically be enabled.
- Messaging control
Occasionally, sellers discover that their retail partners or unauthorized third-party sellers are listing older versions of their products without their consent. This kind of listing usually includes a limited amount of content and images. There is only one way to control and stop these unauthorized listings, which is through a Seller Central account that is enrolled in Amazon’s brand registry program.
- Inventory control
If you’re a small-to-medium-sized business, being able to adapt to your customers’ needs can make or break your business. This is especially true if you produce a limited number of products. Having physical control over anyone’s inventory gives the ability to adapt to market demands.
Amazon Seller Central Cons
- Fulfillment costs
Sometimes the fulfillment and/or shipping costs can limit the ability to sell lower priced items via Amazon. The minimum charge for non-media FBA items that are one pound or less is currently $2.41, which does not include the commission that Amazon charges on top of that. These can quickly add up depending on the size and weight of the products that you are selling. You’ll need to have a strong understanding of the Amazon FBA costs and incorporate it into your decision-making process.
- Sales and marketing
While being responsible for your own sales and marketing is a must for a lot of Amazon sellers, some sellers may not have the resources or knowledge to do so. Like any standalone storefront in the Amazon Marketplace, the Amazon seller will need to constantly manage the store by updating the product description, marketing their products through various avenues, and adjusting to the consumer behavior.
- Referral fees
All products sold through the seller central program are subject to a referral fee paid to Amazon for each item sold. The referral fee is a percent of the product’s sales price, excluding taxes. These fees vary by product category and range from 5% to 20% of the product sales price. The fees can go as high as 30% to 45% but are typically tied to Amazon products or services, including Amazon device accessories. These fees can be substantial depending on the category and eat into the merchant’s profits.
So, these are some of the points that are important for Amazon A+ content. But that’s not all. There are so many ways that are needed to know. Hope you all have a great day. Please be with us. We will give you some more information and tips in the future. So be with us. If you find this information please comment, like, share and be with Ecomclips.
If you find any difficulties organizing your Amazon vendor central or need any help related to vendor central, please contact us. We will give you full support to solve your problem with our top-rated Amazon specialists.