Should You Choose an Amazon Vendor or Seller Account?

When deciding to sell on Amazon, one of the first crucial decisions you’ll face is whether to create a Vendor or Seller account. Each option has its pros and cons, and understanding which one aligns best with your business goals is key to maximising your success on the Amazon marketplace.

What’s the Difference?

Vendor Central is an invite-only platform where you act as a supplier to Amazon. You sell your products in bulk to Amazon, who then sells them directly to customers. This setup is commonly known as first-party (1P) selling.

Seller Central allows you to sell directly to customers. You control the pricing, marketing, and fulfilment. You still have the option to use Fulfilment by Amazon (FBA) or fulfil orders yourself. This is called third-party (3P) selling.

So, assuming you’re a brand-owner who’s been invited to be an Amazon Vendor, how do you choose between the two? Here are some key factors to consider:

Control Your Pricing & Branding

• Vendor Central: Amazon sets the price, and you have limited control over how your products are presented. This can be ideal for companies looking for a hands-off approach.
• Seller Central: You retain full control over your pricing, branding, and marketing strategies. If you want to build your brand and have more flexibility in your selling strategy, this is probably the better choice.

My 2 Cents: If branding, pricing and margin control are important to you, Seller Central gives you greater autonomy.

Product Volume & Fulfilment

• Vendor Central: You sell in bulk to Amazon, and Amazon handles all the fulfilment, shipping, and customer service. This is advantageous for larger brands that just want to focus on production and not marketing.
• Seller Central: You can choose to fulfil orders yourself or use FBA, where Amazon handles storage, shipping, and customer service. This flexibility is perfect for businesses of any size, especially those scaling up.

My 2 Cents: Vendor Central is ideal for businesses with high product volume, while Seller Central suits businesses that want flexibility in fulfilment and volume control.

Relationship with Amazon

• Vendor Central: You’re basically a supplier to Amazon, and you work with a dedicated Amazon representative. Being a Vendor means you have less negotiation power, as Amazon dictates purchase orders, delivery deadlines, and terms.
• Seller Central: You maintain a direct relationship with your customers and Amazon serves as a marketplace. You manage your product listings, promotions, and fulfilment, giving you more control over the customer experience.

My 2 Cents: If you prefer having direct customer interactions and more control over your business operations, Seller Central is the better choice.

Payment Terms

• Vendor Central: Payments are processed based on Amazon’s purchase orders, with terms that may take up to 90 days. The wait for payment can be long, but predictable bulk orders may be worth it for larger companies.
• Seller Central: Payments are typically processed every two weeks, giving you more regular cash flow. This can be a critical factor for smaller businesses looking for more immediate returns.

My 2 Cents: If regular cash flow is essential, Seller Central offers faster payment cycles.

Advertising and Marketing

• Vendor Central: Vendors do have access to Amazon’s premium A+ Content features through Brand Registry, but marketing and promotion options are a little more admin. Amazon handles much of the marketing on your behalf.
• Seller Central: As a Seller, you can also have Brand Registry and have access to powerful marketing tools, including Sponsored Products, Sponsored Brands, and Amazon’s Brand Registry. You can leverage SEO tactics to optimise your product listings on both accounts.

My 2 Cents: If you want to actively market and promote your products, Seller Central provides more direct tools and opportunities to grow your brand.

Which Account Is Right for You?

• Choose Vendor Central if you want a more hands-off approach, have high product volume, and are comfortable giving Amazon control over pricing and fulfilment.
• Choose Seller Central if you prefer greater control over pricing, branding, fulfilment, and customer relationships, and want access to Amazon’s full suite of marketing tools.

Remember, your choice depends on your business size, strategy, and goals for Amazon. Both options have their strengths, but understanding the benefits of each will ensure you make the right decision for long-term growth.

Still Need Help Deciding?

If you’re still unsure which account type is best for your brand, reach out to us here at the Ecommerce Counsel. We’re here to help you navigate the complexities of Amazon and ensure your business thrives!