As Amazon continues to dominate the e-commerce marketplace, selling products on Amazon continues to be one of the most lucrative opportunities for companies in all industries. If your goal is to carve out a piece of the e-commerce pie via Amazon, you'll have an important decision to make right out of the gate: should I use an Amazon Vendor Central account or Amazon Seller Central account?
In this article, we'll take a detailed look at both of these platforms and help you decide which one is the best fit for your business.
Seller Central Vs Vendor Central - Pros and Cons
In the simplest possible terms, there is one key difference between Amazon sellers and Amazon vendors. Sellers sell their products directly to consumers, while vendors sell their products to Amazon (who then resells them to consumers on the site).
With Prime Day right around the corner, you'll want to make a decision soon. While this difference is easy enough to understand, there are several pros and cons that go along with both platforms. These must be taken into account in order to make an informed decision.
Pros - Vendor Central:
- Brand Recognition - Since these products are sold directly from Amazon, they’re also more likely to inspire consumer confidence, increasing your probability of making a sale.
- Prime Eligibility - Products sold by Amazon through Vendor Central are automatically eligible for Amazon Prime.
- Marketing Tools - Vendors using Vendor Central have access to Amazon Marketing Services, meaning they have more tools to market their products compared to Seller Central.
- Fewer Headaches - Vendors selling products directly to Amazon don't have to manage the shipping or customer service. They simply deliver their products to Amazon, market those products accordingly, and leave rest to Amazon.
Cons - Vendor Central:
- Control Over Pricing - Since your products are technically being sold by Amazon, Amazon holds all of the power when it comes to setting prices. As a result, vendors may not always be satisfied with the price that Amazon chooses.
- Barriers to Entry - Amazon accepts vendors by invitation only. On top of that, they are currently sending out fewer invites than ever before. Even if you decide that Amazon Vendor Central is right for your business, acceptance into this program is no guarantee.
- Concerns with Logistics - Amazon demands a lot out of their vendors, and maintaining sufficient inventory on-hand can often be a logistical nightmare.
Pros - Seller Central:
- More Control - With Amazon Seller Central, you control every aspect of your product, including its pricing and how it is displayed on the site.
- Better Analytics - With Seller Central, customers have access to more analytics from Amazon. This paints a much better picture of how well your products are performing and can be incredibly valuable for shaping your marketing strategies.
- Anyone can Join - While vendors are accepted into Amazon Vendor Central by invitation only, the Amazon Seller Central program is open for anyone to join at any time.
Cons - Seller Central:
- Products are not Labeled as "Sold by Amazon" - Since products that are sold by Amazon inspire consumer confidence, Amazon Seller individuals typically see fewer sales than Amazon vendors. In addition to that, products from sellers aren't automatically Prime eligible.
- More Responsibilities - With great freedom comes great responsibility. As a result, Amazon sellers are responsible for shipping individual products, handling returns, and addressing customer complaints.
So, Which One Should I Choose?
Both Amazon Seller Central and Amazon Vendor Central come with a number of advantages and disadvantages that must be considered carefully prior to making an informed decision for your business. Ultimately, though, the best choice will depend on the unique requirements and goals of your business. The decision of choosing Amazon Seller Central or Vendor Central can be difficult.
Retail Bloom offers a wide variety of Amazon services to help businesses navigate through the numerous obstacles that sellers encounter on Amazon. If you would like assistance choosing which program is best for your business, contact us today to schedule a consultation.