Sell your products directly to Amazon instead of being the third-party seller. Amazon sells the products for your company. This is a major difference between an “Amazon Seller” and an “Amazon Vendor”. Each of them comes with its unique resources and dashboards. Given below are the pros and cons of Amazon Seller and Amazon Buyer. Let’s take a quick glance at them.
The biggest question is ‘Who is actually selling the product, Amazon Sellers or Amazon Vendors?’
- Amazon Sellers list, price and market the products on their own.
- Amazon-employed buyers purchase the products from Amazon Vendors. Then they are listed and resold to the Amazon users.
Amazon Vendor Central
Pro – “Sold by Amazon”
Products to be sold by Amazon sellers will be marked as ‘sold by Amazon” once they come onboard with vendor central through an invite from the corporate team. Having the tag “sold by Amazon gives a sense of trust and confidence into the shopper.
Pro: Amazon Marketing Services
Added market opportunities are enjoyed by all the vendors through AMS (Amazon Marketing Services), who handle the back-end of the supply chain – inventory, billing, etc. It helps to attract traffic for your product detail pages and branded pages. It is imperative to understand ‘how to use AMS to its best’ as the vendors know that every click does not equal to a purchase.
AMS gives you an opportunity to showcase their products and brand in front of additional in-market shoppers on Amazon.com. It is considered extremely beneficial over other services. The individual product detail page gives the seller an opportunity to introduce the products alongside the competitor’s product when customers are at the last stage before conversion.
Since there are no minimum pricing policies, there is a chance that the vendor might even lose his money if the price drops too low. The vendor may not see the profit margins they were expecting for certain products.
Con: Inventory concerns
When it comes to inventory and order fulfillment, Amazon gets extremely demanding. It becomes difficult for new vendors to maintain proper stock levels. An additional concern comes to new vendors in the form of high stakes logistical concerns.
Amazon Seller Central
Pro: Increased control
Sellers have more control than their vendor counterparts. They tend to put in more efforts and maybe more money. They need to pay fees per item and sale and have to manage their own pricing, customer communication and fulfillment.
Pro: Better Analysis
Amazon Seller central gives them the opportunity to access detailed analytics that helps them to boost their bottom line. It also provides better control over their returns by heading off unhappy customers. Price control makes it convenient to take advantage of high-demand periods or offer sales.
Con: Not “sold by Amazon”
Only because “sold by Amazon” endorsement doesn’t come easily to the sellers, it typically sees fewer sales than the vendors. Additional flexibility of the program is the decrease in sales that looks worthy.
Amazon Vendor and Amazon Seller Central come with their own distinguished advantages. The choice you make depends on the resources as a merchant, the level of control you want and the fees you’re wanting to pay.