what is amazon fba

How to Choose Amazon Seller Central or Vendor Central

Amazon is increasingly becoming the first place that people go to when making purchases. If a business has not developed a strategy for reaching the customers, it could be not gaining a significant part of the online marketplace.

It’s important to develop a strategy for marketing specifically for Amazon to ensure you’re getting the most benefit from your eCommerce business.

Selling your product on Amazon is a great way to sell your products. There are a variety of Amazon fulfillment choices, among which is choosing whether to use Vendor Central or Seller Central.

The primary distinction between Amazon Vendor Central and Amazon Seller Central is the point of contact that sells your product.

The choice of Vendor Central means Amazon buys your products from you and then sells them back to their customers. Through Seller Central, you are selling your goods directly to consumers, via an Amazon marketplace.

What is Amazon Seller Central?

Amazon Seller Central is the interface used by retailers to advertise and sell their products directly to buyers.

An Amazon Seller Central account is classified as a third-party marketplace or Amazon seller (3P). A third-party Amazon seller is accountable for establishing and maintaining the seller’s account.

Amazon offers professional and individual seller accounts.

The professional seller accounts need a monthly payment, the majority of businesses opt for the accounts for professional sellers since it comes with the ability to analyze data, special marketing treatments as well as a host of other options that a professional Amazon seller needs to grow their business.

As a Third-party Amazon seller, you have two ways to fulfill orders made through an Amazon marketplace.

You can manage all the logistics of shipping, customer support, and returns on your orders by yourself or with a third-party logistics service (3PL) you select.

Alternately, you may choose to let Amazon take care of this by registering in the Fulfillment by Amazon (FBA) program.

Your customers will be able to see “sold by BRAND X and Fulfilled by Amazon” when they purchase your items. 

There are many successful FBA sellers is increasing and there is a rising need to purchase FBA businesses. For more on Amazon FBA, click here.

A quick List of Amazon Seller Central Benefits:

  • All are welcome.
  • Control of the seller’s account
  • Sell directly to Amazon’s buyers
  • Flexible logistical solutions
  • Terms of payment that are quick and easy to pay
  • Brands determine retail pricing
  • Advertising options are limited.
  • Complex sales process
  • Enhanced Brand Content

What is Amazon Vendor Central?

Amazon Vendor Central is most commonly used by direct producers and distributors. If you sell products through Vendor Central you are considered a first-party seller. 

You’re acting as a vendor and selling your products in direct sales to Amazon in large quantities.

The registration process for Vendor Central is strictly by invitation only. Most often, sellers begin using Seller Central and generate demand for their items to convince Amazon to purchase their product in bulk using this Vendor Central system, similar to the other eCommerce (or bricks and mortar) retailers (i.e. Walmart, Target, Bestbuy).

If a company sells using Vendor Central the phrase “ships from and sold by Amazon” appears on the purchase page.

A quick overview of Amazon Vendor Central benefits:

  • Only invites
  • Sell your products to Amazon in large quantities
  • Fixed logistical alternatives
  • Traditional payment conditions
  • Amazon controls retail pricing
  • Multiple advertising options
  • Traditional sales process
  • A+ Content

Recommended guide: How to sell more products on amazon.