Are you looking for a way to sell your products on Amazon, the largest and most popular e-commerce platform in the world? If so, you might be confused about which platform to choose: Seller Central or Vendor Central. Both platforms have their own advantages and disadvantages, depending on your business needs and goals. In this article, we will compare Seller Central vs. Vendor Central and help you decide which one suits your business best.
What is Seller Central
Seller Central is a platform that allows you to sell your products directly to Amazon customers. You can either fulfill the orders yourself or use Amazon’s Fulfillment by Amazon (FBA) service, which handles the storage, packing, shipping, and customer service for you. You can also use Amazon’s advertising and marketing tools to promote your products and increase your sales.
Seller Central is free to join and open to anyone who wants to sell on Amazon. You can choose between two plans: an individual plan that charges $0.99 per item sold, or a professional plan that charges $39.99 per month. You also have to pay referral fees and variable closing fees for each sale, as well as FBA fees if you use the service.
What are the benefits of Seller Central
Seller Central gives you more control over your business, as you can set your own prices, manage your own inventory, and customize your product listings. You can also access various reports and analytics to track your performance and optimize your strategies. You can also sell in multiple marketplaces and reach a global audience.
What are the drawbacks of Seller Central
Amazon Seller Central can be more competitive and challenging, as you have to compete with other sellers and Amazon itself for the Buy Box, which is the section on the product detail page where customers can add items to their cart. You also have to deal with customer service issues, returns, and refunds yourself or through FBA. You also have less access to Amazon’s premium services and programs, such as Prime eligibility, Subscribe & Save, and Amazon Vine.
What is Vendor Central?
Vendor Central is a platform that lets you sell your products directly to Amazon as a wholesaler. Amazon then resells your products to customers under its own name. Vendor Central is invite-only and exclusive to manufacturers and distributors who have an established brand and a large volume of sales.
Vendor Central Pricing
Vendor Central pricing is different from Seller Central pricing, as you have to negotiate wholesale prices and terms with Amazon. Amazon also deducts various fees from your payments, such as co-op fees, chargebacks, freight allowances, and early payment discounts. You also have to pay for Amazon’s marketing and advertising services, such as Amazon Marketing Services (AMS), Amazon Media Group (AMG), and Premium Vendor Services (PVS).
What are the benefits of Vendor Central
Vendor Central gives you more credibility and scalability, as you can leverage Amazon’s brand reputation and customer loyalty. You can also access Amazon’s exclusive services and programs, such as Prime eligibility, Subscribe & Save, Amazon Vine, A+ Content, and Enhanced Brand Content. You can also benefit from Amazon’s logistics and fulfillment network, as they handle the shipping and customer service for you.
What are the drawbacks of Vendor Central
Vendor Central gives you less control over your business, as you have to follow Amazon’s rules and policies regarding pricing, inventory, packaging, labeling, and quality. You also have less visibility into your sales performance and customer feedback, as Amazon owns the customer relationship. You also have less flexibility in terms of product selection and customization, as Amazon decides which products to buy and how to display them.
Seller Central vs. Vendor Central: Which one is right for you
The choice between Seller Central vs. Vendor Central depends on various factors, such as your business size, goals, resources, opportunities, and challenges. Here are some questions to ask yourself before deciding:
- Do you want more control or more credibility?
- Do you want more flexibility or more stability?
- Do you want more visibility or more scalability?
- Do you want more profit margin or more sales volume?
- Do you want more independence or more support?
There is no definitive answer to these questions, as each platform has its pros and cons. The best option for you might be a combination of both platforms or a third option such as Vendor Express or Seller Fulfilled Prime. The key is to do your research, weigh your options carefully, and test different strategies until you find what works best for your business.
Conclusion
Selling on Amazon can be a great way to grow your business and reach a large and loyal customer base. However, you need to choose the right platform for your business needs and goals. Seller Central and Vendor Central are two different platforms that offer different benefits and drawbacks. Seller Central gives you more control and flexibility, but also more competition and responsibility. Vendor Central gives you more credibility and scalability, but also less control and visibility. You need to consider various factors, such as your business size, goals, resources, opportunities, and challenges, before deciding which platform is best for you.
