Definition:
Amazon Vendor Central is Amazon’s space intended for large companies that want to sell on their Marketplace. Vendor Central is focused on large suppliers and manufacturers. When you sign up as a supplier, Amazon is responsible for distributing your products. In addition, it buys and stores your inventory, as well as takes care of the shipping process, customer service and returns.
How Amazon Vendor Works
The main difference with the Seller Central sales system is that with Vendor Central you do not sell to the end customer but to Amazon. With this type of sales system, Amazon is in charge of selling and positioning your products, first estimating possible sales and working under orders. With this system Amazon decides to bet on items and brands that are strongly positioned in both the national and international market. The main objective of this is to market with all kinds of products.
To be part of Vendor Central, it is Amazon that invites you to join. Amazon will analyze your business model, assess the profitability of it and then get in touch. Once inside, you will receive orders of medium and large volume where your biggest concern will be to send the total inventory requested to the company, since they will take care of the rest.
Advantages of Amazon Vendor Central
- Easier to win the Buy Box.
- Amazon promotes the brand.
- You can add extra information to your products,such as videos.
- If you do not have an infrastructure to carry out this type of mass sales, it is a good option.
- No concern for returns and customer service.
Frequently asked questions about Amazon Vendor
What is Amazon Vendor?
Amazon Vendor is the model in which a brand or manufacturer sells its products directly to Amazon, and Amazon acts as a distributor that buys inventory and resells it to the end consumer. It is usually managed from Vendor Central and not from Seller Central.
What is Amazon Vendor used for?
It is used to work with Amazon as a wholesale customer and delegate part of retail sales to the platform itself. It can provide scale, visibility and direct management by Amazon, although it involves negotiating conditions, prices, stock, margins and commercial planning.
What is the difference between Amazon Vendor and Amazon Seller?
In Amazon Vendor the brand sells to Amazon and Amazon sells to the consumer. In Amazon Seller the brand or seller sells directly to the final customer within the marketplace. The difference affects price control, inventory, margins, operations, data and commercial responsibility.
What risks should a company control in Amazon Vendor?
It should control channel dependence, pressure on margins, demand forecasting, stockouts, commercial conditions, billing disputes and loss of control over final price. It is also advisable to review whether the model fits the brand strategy.