Pache.co Information Technologies

There are two ways you can sell on Amazon. You can sell through Seller Central (3P) or to Amazon via Vendor Central (1P). For many third-party sellers, 1P is somewhere they never want to go, but it’s an absolute necessity for some brands.

Today’s episode is all about 1P.

I interview Martin Heubel about the pros and cons and the common issues brands face when using Amazon Vendor Central.

Martin is a former Amazon Vendor Manager, strategy consultant, and ecommerce enthusiast. He is an Amazon vendor manager whisperer for brands looking to survive and thrive on Amazon 1P.

Having sat on the other side for many years, Martin has a unique perspective on what brands need to do to succeed on Amazon and beyond.

Channel Control Strategy in the Digital Age

Often, we dehumanize Amazon, but once you listen to this episode and hear how they make some of their decisions, you’ll understand why they do it.

They are not just thinking about you as a vendor; they are also thinking about the greater online retail landscape, which can make negotiations tough. This makes selling online complex, especially if you are selling to Amazon and other channels.

A key requirement for success for 1P sellers on Amazon Vendor Central is to have a solid channel control strategy to enforce pricing and distribution control across all your digital channels. This way, you can effectively negotiate with Amazon for price increases.

This is a valuable episode for any Vendor Central Seller who wants to understand the inner workings of Amazon. Even 3P sellers will get a lot of value for it.

Tune in.

Some Additional Resources…

Connect with Martin Heubel

– Learn how the experienced team at Avenue7Media can help you and your brand.

– Get The Amazon Jungle book by Jason Boyce on Amazon or Audible (or wherever you get your books).

If you’re ready to start growing your brand on Amazon with a team of experienced Amazon operators, you can book a 30-minute discovery call.

Lastly, If you know anyone else who would gain value from this podcast, please share it with them.

Vendors use Vendor Central. As shown in this Acadia tutorial, it displays orders, items, payments, and reports. It features tools for Amazon Vine, Posts, Manage Your Experiments, and A+ Content. It also provides access to the AdvertisingAdvertising is a means of communication … More Console and Amazon Retail Analytics (ARA).

Business Model

To Amazon, Vendors are wholesalers. After they receive a Purchase Order from Amazon, they ship their products in bulk using a set of fixed logistical options. Amazon then takes charge of the shipment and manages the entire sales cycle, pricing included.

Sellers are retailers who sell directly to customers. Whether they opt for the Professional or the Individual seller account, they set their own prices and manage their own accounts. Unless they outsource to FBA, they also handle picking, packing, shipping, and customer service.

Vendors have no involvement in how their products reach the buyer. Once they ship the items to Amazon, they hand over every aspect of order fulfillment. In return, they may get an Amazon Vendor Manager to help with negotiations, promotions, marketing, sales, and product quality issues.

As a 3rd party seller, you can switch between FBA, MFN, MCF, and SFP fulfillment as you see fit. Select your courier and the delivery service. Consolidate shipments or choose a 3PL service. Make your mark through packaging, gift wrapping, and package inserts.

Order Processing

Sellers list their products and receive their B2C and B2B orders from Amazon via email. They can keep an eye on FBA orders and inventory levels, deactivate listings, and remove items. They also manage MFN and SFP orders themselves. They handle customer queries, shipments, refunds, and so on.

However, vendors usually process these B2B orders through EDI and API. They must monitor backorders and provide sufficient and accurate stock to fulfill Amazon’s order and avoid chargebacks. They must also time their shipments, manage disputes, and keep an eye on the Financial Scorecard.

Customer engagement

3PThird-party sellers are independent indi… More merchants sell directly to Amazon’s customers using their seller name. They build relationships with buyers through Buyer-Seller messaging, feedbackA performance rating on a scale of 1 to … More replies, discounts, and packing slips. Buyers go to them first if they have questions about their merchant-fulfilled (MFN) orders.

But 1PVendors, first-party merchants or 1P are… More merchants have no means of reaching the buyer. Once Amazon’s order is accepted and fulfilled, the product is “Sold by Amazon”. The vendor has no control over it. Things like brand awareness, loyalty, feedback, milestone notification, and issue resolution are out of their hands.

Sellers have full control over their prices. As long as they are within the limits of Amazon’s Fair Pricing Policy, price validation rules, and daily repricing caps, they can set their prices as they see fit. But they’re often forced to compete with Amazon, vendors, and undercutters for the Buy BoxThis refers to the situation where a sel… More.

Vendors can only accept or refuse an offer from Amazon. Once accepted, the vendor’s price is unlikely to rise. In fact, renegotiations will probably bring it down. This is because Amazon adjusts prices based on algorithms, and factors like demand tend to diminish with time.

Fees and Costs

On Amazon, fees can add up, especially if you store too many FBA items for too long. There are also countless hidden costs when you sell on Amazon, whether it’s an FBA, MFN, or SFP order. But most sellers are chiefly concerned with Amazon’s referral fee, which is usually 15%.

Vendors have costs of their own for market development, freight, damages, marketing, remittances, packaging, and Chargeback fees (30%-50%). But for them, the main issue is negotiating a good price, as it can go down as demand shrinks.

Vendors tend to receive purchase orders every Monday with payment in 60-90 days. Even if the orders are small because Amazon likes to order very little at a time, they make for a good cash flow. But there may be times when no orders come through for weeks (e.g., new rules, glitches, plummeting demand).

Sellers, on the other hand, can receive orders any time. With sellers, liquidity issues are more likely to be caused by slow payouts, withheld funds, or suspensions than lack of orders. But the earliest a seller can hope to be paid for a sale is seven days after a tracked and verified delivery.

Are you in the B2C space itching to tap into a new customer base? Thinking of launching an Amazon store? There’s a lot to consider as you start your new venture into the world’s largest marketplace.

Whether you’re just starting out or have an established business, selling on Amazon can be the next step to unlocking a profitable new revenue stream for your eCommerce company.

But wait… what’s the difference between being an Amazon seller or an Amazon vendor? If you’re just getting started and already feeling confused, you’re not alone.

We’ll walk you through the pros & cons of each relationship with Amazon so you can pick the best (and most relevant) one for you to start your Amazon store, including what access to Vendor Central and Seller Central can do for your business.

Amazon sellers vs Amazon vendors

The biggest difference between an Amazon vendor and an Amazon seller is the relationship they have with Amazon. An Amazon vendor is a manufacturer or distributor that sells products to Amazon at a wholesale price.

On the other hand, an Amazon seller is an individual or business that sells products directly to customers through the Amazon marketplace. Each of these is an exciting option for your business that provides powerful tools for expanding your sales channels.

[Banner][Want to Improve your Amazon Setup?][Work with an Amazon Expert on Mayple. Hand-picked marketers with proven experience, hire in 72 hours.][Get Started][https://www.mayple.com/welcome-v4/?utm_content=blog-banner-amazon-vendor-vs-seller][orange]

The pros of being an Amazon vendor

Do you have a high production capacity and supply chain efficiency? Do you have the ability to sell your products at a wholesale price? If “yes,” then Amazon’s Vendor Model could be the perfect setup for you. Here are the pros of being an Amazon vendor.

Sold by Amazon displayed on your listing

Having this on your listing means that Amazon has purchased your product and is reselling it to their customers under their own brand umbrella.

For customers, this badge signifies added trust and confidence as the purchase is covered by Amazon’s customer service and return policies. It also means fast and reliable shipping, and the ability to bundle with other Amazon products.

This makes the purchase eligible for Amazon Prime which gets priority placement in Amazon’s search results.

products with this badge historically convert at a higher rate than merchant-fulfilled listings. The conversion rates on these products alone are enough to consider the Vendor Model.

Access to marketing tools

Amazon Marketing can benefit both Amazon vendors and sellers, but there are certain advantages of being a vendor – you get access to more marketing tools to help grow your business. Here are some perks of being a vendor:

Access to Amazon Marketing Services (AMS)

AMS is a suite of advertising tools that is only available to vendors. Amazon Marketing Services allows vendors to create sponsored product ads, display ads, and video ads, which can drive visibility and sales for their products on Amazon.

Amazon Advertising

Amazon ads help brands and sellers promote their products and reach customers on Amazon’s website, mobile app, and other properties. The platform offers a range of advertising options, including display ads, video ads, sponsored products, and sponsored brands.

A+ Content

A+ Content is enhanced product content that appears below the product description and can include images, videos, and comparison charts. A+ Content is only available to vendors and can help to differentiate their products from competitors and increase conversion rates.

Amazon Retail Analytics (ARA)

ARA is a reporting tool that provides vendors with detailed insights into their product performance, including sales, conversion rates, and customer behavior. ARA can help vendors to make data-driven decisions and optimize their product listings for better performance.

Vendor Central

Amazon Vendor Central is a web-based portal that vendors use to manage their product listings, inventory, and orders. Vendor Central provides vendors with additional tools and resources, such as the ability to create deals and promotions and access to training and support resources.

Simplified business model

While you may have an increased workload upfront to get your product in bulk to FBA (Fulfillment by Amazon), once you are set up, Amazon does everything for you from their Amazon Fulfillment Centers, essentially giving you a “set and forget” revenue stream for your business. Sounds pretty great, right?

You can use Amazon’s Vendor Central to manage your business entirely through Amazon by creating purchase orders and tracking payments and invoices. Another advantage to the Vendor Program is being able to offload customer service issues to Amazon rather than having to staff a customer service team on your own.

Better payment terms

Vendors often receive more favorable payment terms, such as longer payment cycles and the option to receive early payments in exchange for a discount. Amazon does its best to provide favorable logistical options to vendors and help improve fulfillment.

The cons of being an Amazon vendor >>>

Overall, becoming an Amazon vendor can have advantages. However, it’s important to consider the potential impact on your profit margins, in addition to the other requirements and restrictions that come with being a vendor, before making that decision to switch.

Lower margins

Becoming an Amazon vendor can lower your product margins and take-home profit in several ways. Here are a few to consider:

Wholesale pricing

As an Amazon vendor, you would be selling your products wholesale to Amazon at a discounted price, which can reduce your profit margin compared to selling directly to customers. Amazon usually negotiates aggressively on price with vendors, as it seeks to maintain its competitive advantage and have price control to keep prices low for customers.

Shipping and handling fees

When selling products to Amazon as a vendor, you may be responsible for paying shipping and handling fees to get your products to Amazon’s warehouses. These fees can add up and reduce your profit margins quite a bit.

Amazon fees

Amazon’s vendor model charges fees for various services, such as distribution, marketing, and customer service. These vendor fees can vary depending on the category of your product and can significantly add to your normal fulfillment costs.

Volume requirements

Amazon may require you to meet certain volume requirements to maintain your status as a vendor. This can put pressure on your production and supply chain, potentially leading to higher costs and lower margins.

Return policies

Amazon has the right to return unsold products to you, which can result in additional costs and reduce your profit margin. They may be less stringent and process more returns in order to satisfy customers so be aware of that.

Less control over your brand

Are you a stickler for telling your brand story or have stringent brand guidelines? We hate to break it to you, but being an Amazon vendor means you are giving up control over your brand presentation to the customer.

Using FBA means less work for you, it also means less control over your brand as Amazon handles messaging and returns and even controls the pricing. You could end up competing with yourself between your website and Amazon. Imagine this: your Amazon products appear next to your products in the same Google Shopping feed SERPs.

More rigid logistical requirements

Less control also comes with more stringent guidelines and requirements, including pricing and inventory management. Vendors who do not meet these criteria may face penalties.

A few requirements you may face as an Amazon vendor include:

Meeting the requirements can be complex and time-consuming, which is why many companies consider hiring Amazon agencies to help manage the process from end to end. The management aspect is made easier through the use of Amazon’s Vendor Central.

The pros of being an Amazon seller

Becoming an Amazon Seller can be a game-changer for your business. If you’re eager to join the ranks of successful stores, keep reading to learn more about the benefits and challenges of this Amazon relationship – including coveted access to Amazon Seller Central.

More control of your listings

Amazon’s seller model gives you more control over pricing, product information, and customer interaction than for Amazon Vendors. Have a brand you aren’t wanting to part with? Being a seller may be a better option for you than being an Amazon vendor.

Using Amazon’s Seller Central, you can create product listings, manage inventory, fulfill orders, track performance, and communicate with customers directly as your own brand.

Another benefit to having more autonomy over your listings is pricing control. Sellers can determine the best price for their products based on their product margins & other COGs factored in.

Lower fees

As an Amazon seller, you’ll generally pay lower fees than Amazon vendors, which can result in higher profit margins. Amazon seller fees are generally lower than vendor fees because as a seller, you are responsible for managing your own inventory and handling your own logistics. This means that Amazon incurs fewer costs in terms of storage, fulfillment, and shipping

Being an Amazon seller has less guidelines and gives you more flexibility and control over your business. You can choose which products you want to sell, set your own prices, and manage your own inventory in Seller Central. You also have the option to use Amazon’s Fulfilled by Amazon (FBA) service, which allows you to outsource the logistical aspects of your business to Amazon.

No volume requirements

There are no volume requirements, which allows for greater flexibility in managing inventory and production. Have a made-to-order business? This could be a great opportunity for you to expand your horizons.

More branding opportunities

Amazon Sellers have more branding opportunities including the ability to create and manage their own storefront and run their own advertising campaigns.

Overall, being an Amazon Seller can offer more control, flexibility, and branding opportunities, as well as lower fees. However, it does require more hands-on logistics and customer service, which can be a challenge for some brands.

Thankfully, Amazon Seller Central allows you to organize all this information in one simple place.

The cons of being an Amazon seller

It’s not all rosy and there are a few downsides to consider before becoming an Amazon seller.

Amazon is a highly competitive marketplace, and it can be difficult to stand out among the millions of other sellers. Thankfully Amazon’s Seller Central gives you an advantage by helping you to identify product trends in emerging categories so you can continue to grow your business.

High fees

Although Amazon seller fees are generally lower than Amazon vendor fees, they can still add up, especially if you use Amazon’s FBA program or advertising services.

Although there is no subscription fee for Seller Central, sellers are charged a per-item fee for each item sold. Professional sellers pay a monthly fee for Amazon’s subscription service.

Inventory management

As an Amazon Seller, you are responsible for managing your own inventory and ensuring that you have enough stock to meet demand, without overstocking or running out of stock.

Customer service

Amazon places a high emphasis on customer service and positive reviews, and as a Seller, you will be responsible for handling customer inquiries, returns, and complaints.

Buyer complaints can eat up a chunk of your time as a business owner. With the increased volume of exposure on Amazon, you may need to budget time appropriately to handle increased customer service.

If you don’t pay close attention to your customer service complaints, your positive reviews could decline and could negatively impact your sales. Remember – you need to maintain a high level of 5-star reviews to remain a seller.

Policy changes

Amazon’s policies and guidelines can change frequently, and it can be challenging to stay up-to-date and compliant.

Counterfeits and fake reviews

Amazon has had some issues with counterfeit products and fake reviews, which can damage the reputation of legitimate sellers.

The bottom line

To put it simply, both Amazon vendors and sellers have their own unique benefits and drawbacks. The decision of which to choose depends on your goals, resources, and priorities.

Amazon vendors have the advantage of a direct relationship with Amazon and greater marketing opportunities, but lower profit margins and higher logistical requirements. Amazon sellers, on the other hand, have more control over their business and higher profit margins, but must handle more logistics and customer service on their own.

Ultimately, businesses should carefully weigh the pros and cons of each option and determine which best aligns with their business goals and capabilities. Still have questions? Talk to one of our Amazon experts.

[Banner][Want to Improve your Amazon Setup?][Work with an Amazon Expert on Mayple. Hand-picked marketers with proven experience, hire in 72 hours.][Get Started][https://www.mayple.com/welcome-v4/?utm_content=blog-banner-amazon-vendor-vs-seller][blue]

Are you in the B2C space itching to tap into a new customer base? Thinking of launching an Amazon store? There’s a lot to consider as you start your new venture into the world’s largest marketplace.

Whether you’re just starting out or have an established business, selling on Amazon can be the next step to unlocking a profitable new revenue stream for your eCommerce company.

But wait… what’s the difference between being an Amazon seller or an Amazon vendor? If you’re just getting started and already feeling confused, you’re not alone.

We’ll walk you through the pros & cons of each relationship with Amazon so you can pick the best (and most relevant) one for you to start your Amazon store, including what access to Vendor Central and Seller Central can do for your business.

Amazon sellers vs Amazon vendors

The biggest difference between an Amazon vendor and an Amazon seller is the relationship they have with Amazon. An Amazon vendor is a manufacturer or distributor that sells products to Amazon at a wholesale price.

On the other hand, an Amazon seller is an individual or business that sells products directly to customers through the Amazon marketplace. Each of these is an exciting option for your business that provides powerful tools for expanding your sales channels.

[Banner][Want to Improve your Amazon Setup?][Work with an Amazon Expert on Mayple. Hand-picked marketers with proven experience, hire in 72 hours.][Get Started][https://www.mayple.com/welcome-v4/?utm_content=blog-banner-amazon-vendor-vs-seller][orange]

The pros of being an Amazon vendor

Do you have a high production capacity and supply chain efficiency? Do you have the ability to sell your products at a wholesale price? If “yes,” then Amazon’s Vendor Model could be the perfect setup for you. Here are the pros of being an Amazon vendor.

Sold by Amazon displayed on your listing

Having this on your listing means that Amazon has purchased your product and is reselling it to their customers under their own brand umbrella.

For customers, this badge signifies added trust and confidence as the purchase is covered by Amazon’s customer service and return policies. It also means fast and reliable shipping, and the ability to bundle with other Amazon products.

This makes the purchase eligible for Amazon Prime which gets priority placement in Amazon’s search results.

products with this badge historically convert at a higher rate than merchant-fulfilled listings. The conversion rates on these products alone are enough to consider the Vendor Model.

Access to marketing tools

Amazon Marketing can benefit both Amazon vendors and sellers, but there are certain advantages of being a vendor – you get access to more marketing tools to help grow your business. Here are some perks of being a vendor:

Access to Amazon Marketing Services (AMS)

AMS is a suite of advertising tools that is only available to vendors. Amazon Marketing Services allows vendors to create sponsored product ads, display ads, and video ads, which can drive visibility and sales for their products on Amazon.

Amazon Advertising

Amazon ads help brands and sellers promote their products and reach customers on Amazon’s website, mobile app, and other properties. The platform offers a range of advertising options, including display ads, video ads, sponsored products, and sponsored brands.

A+ Content

A+ Content is enhanced product content that appears below the product description and can include images, videos, and comparison charts. A+ Content is only available to vendors and can help to differentiate their products from competitors and increase conversion rates.

Amazon Retail Analytics (ARA)

ARA is a reporting tool that provides vendors with detailed insights into their product performance, including sales, conversion rates, and customer behavior. ARA can help vendors to make data-driven decisions and optimize their product listings for better performance.

Vendor Central

Amazon Vendor Central is a web-based portal that vendors use to manage their product listings, inventory, and orders. Vendor Central provides vendors with additional tools and resources, such as the ability to create deals and promotions and access to training and support resources.

Simplified business model

While you may have an increased workload upfront to get your product in bulk to FBA (Fulfillment by Amazon), once you are set up, Amazon does everything for you from their Amazon Fulfillment Centers, essentially giving you a “set and forget” revenue stream for your business. Sounds pretty great, right?

You can use Amazon’s Vendor Central to manage your business entirely through Amazon by creating purchase orders and tracking payments and invoices. Another advantage to the Vendor Program is being able to offload customer service issues to Amazon rather than having to staff a customer service team on your own.

Better payment terms

Vendors often receive more favorable payment terms, such as longer payment cycles and the option to receive early payments in exchange for a discount. Amazon does its best to provide favorable logistical options to vendors and help improve fulfillment.

The cons of being an Amazon vendor >>>

Overall, becoming an Amazon vendor can have advantages. However, it’s important to consider the potential impact on your profit margins, in addition to the other requirements and restrictions that come with being a vendor, before making that decision to switch.

Lower margins

Becoming an Amazon vendor can lower your product margins and take-home profit in several ways. Here are a few to consider:

Wholesale pricing

As an Amazon vendor, you would be selling your products wholesale to Amazon at a discounted price, which can reduce your profit margin compared to selling directly to customers. Amazon usually negotiates aggressively on price with vendors, as it seeks to maintain its competitive advantage and have price control to keep prices low for customers.

Shipping and handling fees

When selling products to Amazon as a vendor, you may be responsible for paying shipping and handling fees to get your products to Amazon’s warehouses. These fees can add up and reduce your profit margins quite a bit.

Amazon fees

Amazon’s vendor model charges fees for various services, such as distribution, marketing, and customer service. These vendor fees can vary depending on the category of your product and can significantly add to your normal fulfillment costs.

Volume requirements

Amazon may require you to meet certain volume requirements to maintain your status as a vendor. This can put pressure on your production and supply chain, potentially leading to higher costs and lower margins.

Return policies

Amazon has the right to return unsold products to you, which can result in additional costs and reduce your profit margin. They may be less stringent and process more returns in order to satisfy customers so be aware of that.

Less control over your brand

Are you a stickler for telling your brand story or have stringent brand guidelines? We hate to break it to you, but being an Amazon vendor means you are giving up control over your brand presentation to the customer.

Using FBA means less work for you, it also means less control over your brand as Amazon handles messaging and returns and even controls the pricing. You could end up competing with yourself between your website and Amazon. Imagine this: your Amazon products appear next to your products in the same Google Shopping feed SERPs.

More rigid logistical requirements

Less control also comes with more stringent guidelines and requirements, including pricing and inventory management. Vendors who do not meet these criteria may face penalties.

A few requirements you may face as an Amazon vendor include:

Meeting the requirements can be complex and time-consuming, which is why many companies consider hiring Amazon agencies to help manage the process from end to end. The management aspect is made easier through the use of Amazon’s Vendor Central.

The pros of being an Amazon seller

Becoming an Amazon Seller can be a game-changer for your business. If you’re eager to join the ranks of successful stores, keep reading to learn more about the benefits and challenges of this Amazon relationship – including coveted access to Amazon Seller Central.

More control of your listings

Amazon’s seller model gives you more control over pricing, product information, and customer interaction than for Amazon Vendors. Have a brand you aren’t wanting to part with? Being a seller may be a better option for you than being an Amazon vendor.

Using Amazon’s Seller Central, you can create product listings, manage inventory, fulfill orders, track performance, and communicate with customers directly as your own brand.

Another benefit to having more autonomy over your listings is pricing control. Sellers can determine the best price for their products based on their product margins & other COGs factored in.

Lower fees

As an Amazon seller, you’ll generally pay lower fees than Amazon vendors, which can result in higher profit margins. Amazon seller fees are generally lower than vendor fees because as a seller, you are responsible for managing your own inventory and handling your own logistics. This means that Amazon incurs fewer costs in terms of storage, fulfillment, and shipping

Being an Amazon seller has less guidelines and gives you more flexibility and control over your business. You can choose which products you want to sell, set your own prices, and manage your own inventory in Seller Central. You also have the option to use Amazon’s Fulfilled by Amazon (FBA) service, which allows you to outsource the logistical aspects of your business to Amazon.

No volume requirements

There are no volume requirements, which allows for greater flexibility in managing inventory and production. Have a made-to-order business? This could be a great opportunity for you to expand your horizons.

More branding opportunities

Amazon Sellers have more branding opportunities including the ability to create and manage their own storefront and run their own advertising campaigns.

Overall, being an Amazon Seller can offer more control, flexibility, and branding opportunities, as well as lower fees. However, it does require more hands-on logistics and customer service, which can be a challenge for some brands.

Thankfully, Amazon Seller Central allows you to organize all this information in one simple place.

The cons of being an Amazon seller

It’s not all rosy and there are a few downsides to consider before becoming an Amazon seller.

Amazon is a highly competitive marketplace, and it can be difficult to stand out among the millions of other sellers. Thankfully Amazon’s Seller Central gives you an advantage by helping you to identify product trends in emerging categories so you can continue to grow your business.

High fees

Although Amazon seller fees are generally lower than Amazon vendor fees, they can still add up, especially if you use Amazon’s FBA program or advertising services.

Although there is no subscription fee for Seller Central, sellers are charged a per-item fee for each item sold. Professional sellers pay a monthly fee for Amazon’s subscription service.

Inventory management

As an Amazon Seller, you are responsible for managing your own inventory and ensuring that you have enough stock to meet demand, without overstocking or running out of stock.

Customer service

Amazon places a high emphasis on customer service and positive reviews, and as a Seller, you will be responsible for handling customer inquiries, returns, and complaints.

Buyer complaints can eat up a chunk of your time as a business owner. With the increased volume of exposure on Amazon, you may need to budget time appropriately to handle increased customer service.

If you don’t pay close attention to your customer service complaints, your positive reviews could decline and could negatively impact your sales. Remember – you need to maintain a high level of 5-star reviews to remain a seller.

Policy changes

Amazon’s policies and guidelines can change frequently, and it can be challenging to stay up-to-date and compliant.

Counterfeits and fake reviews

Amazon has had some issues with counterfeit products and fake reviews, which can damage the reputation of legitimate sellers.

The bottom line

To put it simply, both Amazon vendors and sellers have their own unique benefits and drawbacks. The decision of which to choose depends on your goals, resources, and priorities.

Amazon vendors have the advantage of a direct relationship with Amazon and greater marketing opportunities, but lower profit margins and higher logistical requirements. Amazon sellers, on the other hand, have more control over their business and higher profit margins, but must handle more logistics and customer service on their own.

Ultimately, businesses should carefully weigh the pros and cons of each option and determine which best aligns with their business goals and capabilities. Still have questions? Talk to one of our Amazon experts.

[Banner][Want to Improve your Amazon Setup?][Work with an Amazon Expert on Mayple. Hand-picked marketers with proven experience, hire in 72 hours.][Get Started][https://www.mayple.com/welcome-v4/?utm_content=blog-banner-amazon-vendor-vs-seller][blue]

Are you in the B2C space itching to tap into a new customer base? Thinking of launching an Amazon store? There’s a lot to consider as you start your new venture into the world’s largest marketplace.

Whether you’re just starting out or have an established business, selling on Amazon can be the next step to unlocking a profitable new revenue stream for your eCommerce company.

But wait… what’s the difference between being an Amazon seller or an Amazon vendor? If you’re just getting started and already feeling confused, you’re not alone.

We’ll walk you through the pros & cons of each relationship with Amazon so you can pick the best (and most relevant) one for you to start your Amazon store, including what access to Vendor Central and Seller Central can do for your business.

Amazon sellers vs Amazon vendors

The biggest difference between an Amazon vendor and an Amazon seller is the relationship they have with Amazon. An Amazon vendor is a manufacturer or distributor that sells products to Amazon at a wholesale price.

On the other hand, an Amazon seller is an individual or business that sells products directly to customers through the Amazon marketplace. Each of these is an exciting option for your business that provides powerful tools for expanding your sales channels.

[Banner][Want to Improve your Amazon Setup?][Work with an Amazon Expert on Mayple. Hand-picked marketers with proven experience, hire in 72 hours.][Get Started][https://www.mayple.com/welcome-v4/?utm_content=blog-banner-amazon-vendor-vs-seller][orange]

The pros of being an Amazon vendor

Do you have a high production capacity and supply chain efficiency? Do you have the ability to sell your products at a wholesale price? If “yes,” then Amazon’s Vendor Model could be the perfect setup for you. Here are the pros of being an Amazon vendor.

Sold by Amazon displayed on your listing

Having this on your listing means that Amazon has purchased your product and is reselling it to their customers under their own brand umbrella.

For customers, this badge signifies added trust and confidence as the purchase is covered by Amazon’s customer service and return policies. It also means fast and reliable shipping, and the ability to bundle with other Amazon products.

This makes the purchase eligible for Amazon Prime which gets priority placement in Amazon’s search results.

products with this badge historically convert at a higher rate than merchant-fulfilled listings. The conversion rates on these products alone are enough to consider the Vendor Model.

Access to marketing tools

Amazon Marketing can benefit both Amazon vendors and sellers, but there are certain advantages of being a vendor – you get access to more marketing tools to help grow your business. Here are some perks of being a vendor:

Access to Amazon Marketing Services (AMS)

AMS is a suite of advertising tools that is only available to vendors. Amazon Marketing Services allows vendors to create sponsored product ads, display ads, and video ads, which can drive visibility and sales for their products on Amazon.

Amazon Advertising

Amazon ads help brands and sellers promote their products and reach customers on Amazon’s website, mobile app, and other properties. The platform offers a range of advertising options, including display ads, video ads, sponsored products, and sponsored brands.

A+ Content

A+ Content is enhanced product content that appears below the product description and can include images, videos, and comparison charts. A+ Content is only available to vendors and can help to differentiate their products from competitors and increase conversion rates.

Amazon Retail Analytics (ARA)

ARA is a reporting tool that provides vendors with detailed insights into their product performance, including sales, conversion rates, and customer behavior. ARA can help vendors to make data-driven decisions and optimize their product listings for better performance.

Vendor Central

Amazon Vendor Central is a web-based portal that vendors use to manage their product listings, inventory, and orders. Vendor Central provides vendors with additional tools and resources, such as the ability to create deals and promotions and access to training and support resources.

Simplified business model

While you may have an increased workload upfront to get your product in bulk to FBA (Fulfillment by Amazon), once you are set up, Amazon does everything for you from their Amazon Fulfillment Centers, essentially giving you a “set and forget” revenue stream for your business. Sounds pretty great, right?

You can use Amazon’s Vendor Central to manage your business entirely through Amazon by creating purchase orders and tracking payments and invoices. Another advantage to the Vendor Program is being able to offload customer service issues to Amazon rather than having to staff a customer service team on your own.

Better payment terms

Vendors often receive more favorable payment terms, such as longer payment cycles and the option to receive early payments in exchange for a discount. Amazon does its best to provide favorable logistical options to vendors and help improve fulfillment.

The cons of being an Amazon vendor >>>

Overall, becoming an Amazon vendor can have advantages. However, it’s important to consider the potential impact on your profit margins, in addition to the other requirements and restrictions that come with being a vendor, before making that decision to switch.

Lower margins

Becoming an Amazon vendor can lower your product margins and take-home profit in several ways. Here are a few to consider:

Wholesale pricing

As an Amazon vendor, you would be selling your products wholesale to Amazon at a discounted price, which can reduce your profit margin compared to selling directly to customers. Amazon usually negotiates aggressively on price with vendors, as it seeks to maintain its competitive advantage and have price control to keep prices low for customers.

Shipping and handling fees

When selling products to Amazon as a vendor, you may be responsible for paying shipping and handling fees to get your products to Amazon’s warehouses. These fees can add up and reduce your profit margins quite a bit.

Amazon fees

Amazon’s vendor model charges fees for various services, such as distribution, marketing, and customer service. These vendor fees can vary depending on the category of your product and can significantly add to your normal fulfillment costs.

Volume requirements

Amazon may require you to meet certain volume requirements to maintain your status as a vendor. This can put pressure on your production and supply chain, potentially leading to higher costs and lower margins.

Return policies

Amazon has the right to return unsold products to you, which can result in additional costs and reduce your profit margin. They may be less stringent and process more returns in order to satisfy customers so be aware of that.

Less control over your brand

Are you a stickler for telling your brand story or have stringent brand guidelines? We hate to break it to you, but being an Amazon vendor means you are giving up control over your brand presentation to the customer.

Using FBA means less work for you, it also means less control over your brand as Amazon handles messaging and returns and even controls the pricing. You could end up competing with yourself between your website and Amazon. Imagine this: your Amazon products appear next to your products in the same Google Shopping feed SERPs.

More rigid logistical requirements

Less control also comes with more stringent guidelines and requirements, including pricing and inventory management. Vendors who do not meet these criteria may face penalties.

A few requirements you may face as an Amazon vendor include:

Meeting the requirements can be complex and time-consuming, which is why many companies consider hiring Amazon agencies to help manage the process from end to end. The management aspect is made easier through the use of Amazon’s Vendor Central.

The pros of being an Amazon seller

Becoming an Amazon Seller can be a game-changer for your business. If you’re eager to join the ranks of successful stores, keep reading to learn more about the benefits and challenges of this Amazon relationship – including coveted access to Amazon Seller Central.

More control of your listings

Amazon’s seller model gives you more control over pricing, product information, and customer interaction than for Amazon Vendors. Have a brand you aren’t wanting to part with? Being a seller may be a better option for you than being an Amazon vendor.

Using Amazon’s Seller Central, you can create product listings, manage inventory, fulfill orders, track performance, and communicate with customers directly as your own brand.

Another benefit to having more autonomy over your listings is pricing control. Sellers can determine the best price for their products based on their product margins & other COGs factored in.

Lower fees

As an Amazon seller, you’ll generally pay lower fees than Amazon vendors, which can result in higher profit margins. Amazon seller fees are generally lower than vendor fees because as a seller, you are responsible for managing your own inventory and handling your own logistics. This means that Amazon incurs fewer costs in terms of storage, fulfillment, and shipping

Being an Amazon seller has less guidelines and gives you more flexibility and control over your business. You can choose which products you want to sell, set your own prices, and manage your own inventory in Seller Central. You also have the option to use Amazon’s Fulfilled by Amazon (FBA) service, which allows you to outsource the logistical aspects of your business to Amazon.

No volume requirements

There are no volume requirements, which allows for greater flexibility in managing inventory and production. Have a made-to-order business? This could be a great opportunity for you to expand your horizons.

More branding opportunities

Amazon Sellers have more branding opportunities including the ability to create and manage their own storefront and run their own advertising campaigns.

Overall, being an Amazon Seller can offer more control, flexibility, and branding opportunities, as well as lower fees. However, it does require more hands-on logistics and customer service, which can be a challenge for some brands.

Thankfully, Amazon Seller Central allows you to organize all this information in one simple place.

The cons of being an Amazon seller

It’s not all rosy and there are a few downsides to consider before becoming an Amazon seller.

Amazon is a highly competitive marketplace, and it can be difficult to stand out among the millions of other sellers. Thankfully Amazon’s Seller Central gives you an advantage by helping you to identify product trends in emerging categories so you can continue to grow your business.

High fees

Although Amazon seller fees are generally lower than Amazon vendor fees, they can still add up, especially if you use Amazon’s FBA program or advertising services.

Although there is no subscription fee for Seller Central, sellers are charged a per-item fee for each item sold. Professional sellers pay a monthly fee for Amazon’s subscription service.

Inventory management

As an Amazon Seller, you are responsible for managing your own inventory and ensuring that you have enough stock to meet demand, without overstocking or running out of stock.

Customer service

Amazon places a high emphasis on customer service and positive reviews, and as a Seller, you will be responsible for handling customer inquiries, returns, and complaints.

Buyer complaints can eat up a chunk of your time as a business owner. With the increased volume of exposure on Amazon, you may need to budget time appropriately to handle increased customer service.

If you don’t pay close attention to your customer service complaints, your positive reviews could decline and could negatively impact your sales. Remember – you need to maintain a high level of 5-star reviews to remain a seller.

Policy changes

Amazon’s policies and guidelines can change frequently, and it can be challenging to stay up-to-date and compliant.

Counterfeits and fake reviews

Amazon has had some issues with counterfeit products and fake reviews, which can damage the reputation of legitimate sellers.

The bottom line

To put it simply, both Amazon vendors and sellers have their own unique benefits and drawbacks. The decision of which to choose depends on your goals, resources, and priorities.

Amazon vendors have the advantage of a direct relationship with Amazon and greater marketing opportunities, but lower profit margins and higher logistical requirements. Amazon sellers, on the other hand, have more control over their business and higher profit margins, but must handle more logistics and customer service on their own.

Ultimately, businesses should carefully weigh the pros and cons of each option and determine which best aligns with their business goals and capabilities. Still have questions? Talk to one of our Amazon experts.

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Are you in the B2C space itching to tap into a new customer base? Thinking of launching an Amazon store? There’s a lot to consider as you start your new venture into the world’s largest marketplace.

Whether you’re just starting out or have an established business, selling on Amazon can be the next step to unlocking a profitable new revenue stream for your eCommerce company.

But wait… what’s the difference between being an Amazon seller or an Amazon vendor? If you’re just getting started and already feeling confused, you’re not alone.

We’ll walk you through the pros & cons of each relationship with Amazon so you can pick the best (and most relevant) one for you to start your Amazon store, including what access to Vendor Central and Seller Central can do for your business.

Amazon sellers vs Amazon vendors

The biggest difference between an Amazon vendor and an Amazon seller is the relationship they have with Amazon. An Amazon vendor is a manufacturer or distributor that sells products to Amazon at a wholesale price.

On the other hand, an Amazon seller is an individual or business that sells products directly to customers through the Amazon marketplace. Each of these is an exciting option for your business that provides powerful tools for expanding your sales channels.

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The pros of being an Amazon vendor

Do you have a high production capacity and supply chain efficiency? Do you have the ability to sell your products at a wholesale price? If “yes,” then Amazon’s Vendor Model could be the perfect setup for you. Here are the pros of being an Amazon vendor.

Sold by Amazon displayed on your listing

Having this on your listing means that Amazon has purchased your product and is reselling it to their customers under their own brand umbrella.

For customers, this badge signifies added trust and confidence as the purchase is covered by Amazon’s customer service and return policies. It also means fast and reliable shipping, and the ability to bundle with other Amazon products.

This makes the purchase eligible for Amazon Prime which gets priority placement in Amazon’s search results.

products with this badge historically convert at a higher rate than merchant-fulfilled listings. The conversion rates on these products alone are enough to consider the Vendor Model.

Access to marketing tools

Amazon Marketing can benefit both Amazon vendors and sellers, but there are certain advantages of being a vendor – you get access to more marketing tools to help grow your business. Here are some perks of being a vendor:

Access to Amazon Marketing Services (AMS)

AMS is a suite of advertising tools that is only available to vendors. Amazon Marketing Services allows vendors to create sponsored product ads, display ads, and video ads, which can drive visibility and sales for their products on Amazon.

Amazon Advertising

Amazon ads help brands and sellers promote their products and reach customers on Amazon’s website, mobile app, and other properties. The platform offers a range of advertising options, including display ads, video ads, sponsored products, and sponsored brands.

A+ Content

A+ Content is enhanced product content that appears below the product description and can include images, videos, and comparison charts. A+ Content is only available to vendors and can help to differentiate their products from competitors and increase conversion rates.

Amazon Retail Analytics (ARA)

ARA is a reporting tool that provides vendors with detailed insights into their product performance, including sales, conversion rates, and customer behavior. ARA can help vendors to make data-driven decisions and optimize their product listings for better performance.

Vendor Central

Amazon Vendor Central is a web-based portal that vendors use to manage their product listings, inventory, and orders. Vendor Central provides vendors with additional tools and resources, such as the ability to create deals and promotions and access to training and support resources.

Simplified business model

While you may have an increased workload upfront to get your product in bulk to FBA (Fulfillment by Amazon), once you are set up, Amazon does everything for you from their Amazon Fulfillment Centers, essentially giving you a “set and forget” revenue stream for your business. Sounds pretty great, right?

You can use Amazon’s Vendor Central to manage your business entirely through Amazon by creating purchase orders and tracking payments and invoices. Another advantage to the Vendor Program is being able to offload customer service issues to Amazon rather than having to staff a customer service team on your own.

Better payment terms

Vendors often receive more favorable payment terms, such as longer payment cycles and the option to receive early payments in exchange for a discount. Amazon does its best to provide favorable logistical options to vendors and help improve fulfillment.

The cons of being an Amazon vendor >>>

Overall, becoming an Amazon vendor can have advantages. However, it’s important to consider the potential impact on your profit margins, in addition to the other requirements and restrictions that come with being a vendor, before making that decision to switch.

Lower margins

Becoming an Amazon vendor can lower your product margins and take-home profit in several ways. Here are a few to consider:

Wholesale pricing

As an Amazon vendor, you would be selling your products wholesale to Amazon at a discounted price, which can reduce your profit margin compared to selling directly to customers. Amazon usually negotiates aggressively on price with vendors, as it seeks to maintain its competitive advantage and have price control to keep prices low for customers.

Shipping and handling fees

When selling products to Amazon as a vendor, you may be responsible for paying shipping and handling fees to get your products to Amazon’s warehouses. These fees can add up and reduce your profit margins quite a bit.

Amazon fees

Amazon’s vendor model charges fees for various services, such as distribution, marketing, and customer service. These vendor fees can vary depending on the category of your product and can significantly add to your normal fulfillment costs.

Volume requirements

Amazon may require you to meet certain volume requirements to maintain your status as a vendor. This can put pressure on your production and supply chain, potentially leading to higher costs and lower margins.

Return policies

Amazon has the right to return unsold products to you, which can result in additional costs and reduce your profit margin. They may be less stringent and process more returns in order to satisfy customers so be aware of that.

Less control over your brand

Are you a stickler for telling your brand story or have stringent brand guidelines? We hate to break it to you, but being an Amazon vendor means you are giving up control over your brand presentation to the customer.

Using FBA means less work for you, it also means less control over your brand as Amazon handles messaging and returns and even controls the pricing. You could end up competing with yourself between your website and Amazon. Imagine this: your Amazon products appear next to your products in the same Google Shopping feed SERPs.

More rigid logistical requirements

Less control also comes with more stringent guidelines and requirements, including pricing and inventory management. Vendors who do not meet these criteria may face penalties.

A few requirements you may face as an Amazon vendor include:

Meeting the requirements can be complex and time-consuming, which is why many companies consider hiring Amazon agencies to help manage the process from end to end. The management aspect is made easier through the use of Amazon’s Vendor Central.

The pros of being an Amazon seller

Becoming an Amazon Seller can be a game-changer for your business. If you’re eager to join the ranks of successful stores, keep reading to learn more about the benefits and challenges of this Amazon relationship – including coveted access to Amazon Seller Central.

More control of your listings

Amazon’s seller model gives you more control over pricing, product information, and customer interaction than for Amazon Vendors. Have a brand you aren’t wanting to part with? Being a seller may be a better option for you than being an Amazon vendor.

Using Amazon’s Seller Central, you can create product listings, manage inventory, fulfill orders, track performance, and communicate with customers directly as your own brand.

Another benefit to having more autonomy over your listings is pricing control. Sellers can determine the best price for their products based on their product margins & other COGs factored in.

Lower fees

As an Amazon seller, you’ll generally pay lower fees than Amazon vendors, which can result in higher profit margins. Amazon seller fees are generally lower than vendor fees because as a seller, you are responsible for managing your own inventory and handling your own logistics. This means that Amazon incurs fewer costs in terms of storage, fulfillment, and shipping

Being an Amazon seller has less guidelines and gives you more flexibility and control over your business. You can choose which products you want to sell, set your own prices, and manage your own inventory in Seller Central. You also have the option to use Amazon’s Fulfilled by Amazon (FBA) service, which allows you to outsource the logistical aspects of your business to Amazon.

No volume requirements

There are no volume requirements, which allows for greater flexibility in managing inventory and production. Have a made-to-order business? This could be a great opportunity for you to expand your horizons.

More branding opportunities

Amazon Sellers have more branding opportunities including the ability to create and manage their own storefront and run their own advertising campaigns.

Overall, being an Amazon Seller can offer more control, flexibility, and branding opportunities, as well as lower fees. However, it does require more hands-on logistics and customer service, which can be a challenge for some brands.

Thankfully, Amazon Seller Central allows you to organize all this information in one simple place.

The cons of being an Amazon seller

It’s not all rosy and there are a few downsides to consider before becoming an Amazon seller.

Amazon is a highly competitive marketplace, and it can be difficult to stand out among the millions of other sellers. Thankfully Amazon’s Seller Central gives you an advantage by helping you to identify product trends in emerging categories so you can continue to grow your business.

High fees

Although Amazon seller fees are generally lower than Amazon vendor fees, they can still add up, especially if you use Amazon’s FBA program or advertising services.

Although there is no subscription fee for Seller Central, sellers are charged a per-item fee for each item sold. Professional sellers pay a monthly fee for Amazon’s subscription service.

Inventory management

As an Amazon Seller, you are responsible for managing your own inventory and ensuring that you have enough stock to meet demand, without overstocking or running out of stock.

Customer service

Amazon places a high emphasis on customer service and positive reviews, and as a Seller, you will be responsible for handling customer inquiries, returns, and complaints.

Buyer complaints can eat up a chunk of your time as a business owner. With the increased volume of exposure on Amazon, you may need to budget time appropriately to handle increased customer service.

If you don’t pay close attention to your customer service complaints, your positive reviews could decline and could negatively impact your sales. Remember – you need to maintain a high level of 5-star reviews to remain a seller.

Policy changes

Amazon’s policies and guidelines can change frequently, and it can be challenging to stay up-to-date and compliant.

Counterfeits and fake reviews

Amazon has had some issues with counterfeit products and fake reviews, which can damage the reputation of legitimate sellers.

The bottom line

To put it simply, both Amazon vendors and sellers have their own unique benefits and drawbacks. The decision of which to choose depends on your goals, resources, and priorities.

Amazon vendors have the advantage of a direct relationship with Amazon and greater marketing opportunities, but lower profit margins and higher logistical requirements. Amazon sellers, on the other hand, have more control over their business and higher profit margins, but must handle more logistics and customer service on their own.

Ultimately, businesses should carefully weigh the pros and cons of each option and determine which best aligns with their business goals and capabilities. Still have questions? Talk to one of our Amazon experts.

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If you already have high-quality products, then content management separates you from succeeding in Amazon Vendor Central. Let’s say that the right approach to content management always makes all the difference. Apply these tips:

Prioritize keyword research

When you’re creating or updating your product content, it’s important to prioritize keyword research. This will help you identify the right keywords to target, which will in turn help your products rank higher in search results.

The best way to do this is using Amazon’s, Keyword Tool. This tool is designed to help you find keywords relevant to your products and with a high search volume. You can use these keywords throughout your product listing, including in the title, bullet points, and description.

Take these actions:

Optimize product titles and product descriptions

The product title should accurately reflect the content and include relevant keywords. Try to keep it concise and eye-catching so that Amazon will be drawn in by your words. In the same way, product descriptions should provide thorough information that conveys your product’s value while utilizing all Amazon-recommended descriptive words and phrases. Additionally, make sure all details are correct and error-free. Start by considering the four main components of the title: keywords and phrases, brands, attributes, and descriptors. 

Focus on writing short & memorable key feature bullets

Your key feature bullets must be short and memorable so one can quickly scan them and understand your product. Rather than listing many features, focus on the most important ones and make sure they stand out. Use clear, concise language and avoid industry jargon that might not be easy to understand. And most importantly, be sure to proofread your features before publishing! A small mistake can make a big impression (not in a good way).

Make sure product attributes are complete & accurate.

This is key—if you want your product to show up high in Amazon Vendor Central search results, you must ensure that all the product attributes are complete and accurate. You can manage your product attributes in a few places, but the most important is the Product Detail Page. That’s where you get to demonstrate more about your product, so you want to ensure that all the information is accurate and up-to-date.

Enhance product images with appropriate metadata

It’s important to make sure that product images are clear and concise. But in addition to that, you also need to ensure that they are properly tagged with metadata. This might seem like a useless inclusion, but it’s quite important. By including metadata, you’re essentially giving Amazon’s algorithms more information to work with, which can result in your products being more easily found. To do this, you’ll need to edit the ALT text for each image. The ALT text is what appears when someone mouses over an image, and it should be no more than 125 characters. In addition to the ALT text, you’ll also need to fill out the image description field. This should be a brief sentence that tells Amazon what the image is of.

Ensure product content is consistent across all company channels

This is important for two reasons: first because it helps build a strong, consistent brand; and second, because it can help you avoid problems with Amazon’s policies. If you’re selling the same product on your company website, on other eCommerce platforms like eBay or Etsy, in brick-and-mortar stores, or even on social media, make sure the product content (including title, description, images, etc.) is the same on Amazon Vendor Central. 

Continuously manage and improve your product content.

If you’re not already doing so, please start right away. Just because you’ve created great product content doesn’t mean it will stay great forever. Your product content should be a living, breathing thing constantly being updated and improved. As your products change and evolve, so too should your product content. To do this effectively, you need systems and processes to manage your product content. This includes having someone responsible for overseeing your product content, having a schedule for regularly reviewing and updating your content, and using tools that can easily update lots of content at once. It will quickly become outdated and inaccurate if you don’t have systems and processes to manage your product content at scale. This can hurt your sales and damage your reputation with customers.

PIM & DAM makes it easy to unify data and assets into a single source of truth that can be accessed from any device and location worldwide. This allows all stakeholders to use accurate and up-to-date content no matter where they work within the Amazon Vendor Central ecosystem. With the right PIM & DAM solution, you can easily aggregate product information from your internal sources and store it in one accessible repository. This unified platform enables users to quickly access, view, enhance, manage, and distribute all necessary product content with a button click. In addition to consolidating information into one platform, an effective PIM & DAM solution should leverage powerful technologies such as machine learning and natural language processing to enrich and correct existing product data automatically.

Amazon removed LBB from Vendor Central reporting. This was a metric many vendors relied on heavily. Amazon removed LBB from Vendor Central reporting. This was a metric many vendors relied on heavily for and I wrote a simple article. Read the full article before commenting. I’m also going to talk about my view of how Amazon will do in the year 2020-2023. They made it very clear by creating a new category of reports in Amazon Product Review Center what their long term plan is.I wrote an article for an Amazon Professional Blog about what Amazon is doing with Vendor Central. This was a metric many vendors relied on heavily. But after Amazon disabled the report Amazon removed, Amazon removed it from Vendor Central reporting and the report doesn’t exist anymore.Many Vendors still rely on LBB for their online businessLBB = Latest by Best SellerLBB is a metric that many vendors relied on heavily, where the sales price was the best selling price for the last 90 days, this metric means the vendor is selling more in Amazon.LBB still exists in Amazon, but the report no longer is available due to the change Amazon made in 2023The removal made sense since the new report Amazon created was available in Product Review Center.With the new report Amazon gave me a full breakdown on how each part of my marketing strategy is performing in Amazon!That is a metric that Amazon did not offer before the removal from Vendor CentralThe article I wrote for Amazon Professional Blog is a long one. You can read the full article here. I don’t want to give away all the information of the article, but the article highlights the following points:Vendors

Amazon has recently announced that they are eliminating free UPS returns, meaning customers will now have to pay for return shipping. This change has caused quite a stir among Amazon customers, as many are now wondering what the impacts of this decision will be. In this article, we will explore both the negative and positive impacts of Amazon’s decision to eliminate free UPS returns.

Negative Impacts of Eliminating Free UPS Returns

One of the biggest negative impacts of Amazon eliminating free UPS returns is the financial burden it places on customers. With customers now having to pay for return shipping, they may be less likely to make returns, meaning they will have to live with products that don’t meet their needs. This could lead to customers feeling unsatisfied with their purchases and potentially discourage them from making further purchases in the future.

Another potential downside is the increased complexity of the return process. With customers having to pay for return shipping, they may have to go through a longer and more complicated process to make a return. This could lead to confusion and frustration for customers, making them less likely to make returns in the future.

Positive Impacts of Eliminating Free UPS Returns

One potential benefit of Amazon eliminating free UPS returns is that it could lead to fewer fraudulent returns. By requiring customers to pay for return shipping, it may discourage people from making fraudulent returns, as they won’t be able to get a free return label from Amazon. This could lead to fewer losses for Amazon, which could help them keep prices low for customers.

Another potential benefit is that it could lead to fewer returns overall. By requiring customers to pay for return shipping, it may lead to customers being more selective about the items they purchase. This could lead to fewer returns, which could be beneficial for both Amazon and customers.

In conclusion, Amazon’s decision to eliminate free UPS returns has both positive and negative impacts. On one hand, it could lead to fewer fraudulent returns and fewer returns overall. On the other hand, it could lead to customers feeling unsatisfied with their purchases and a more complicated return process. Ultimately, it remains to be seen how this decision will affect Amazon’s customers in the long run.

I have ordered philips speakers from amazon shopping on 20th december 2022 but the supplier send me wrong item something named as egg poacher on packing. I have

It’s no secret that Amazon has dominated the eCommerce landscape for the past decade or so. Customers go there to find new products and to buy what they need. 74% of Amazon customers say they use Amazon to discover new brands and in the United States alone 7,400 products are purchased every minute. With two-day shipping, seamless returns, and tons of options, it’s easy to turn to marketplace giant for your shopping needs, and Amazon’s growth isn’t slowing down. It’s clear to see why brands and retailers need to take full advantage of this digital behemoth.

Selling on Amazon is a great way to reach new audiences and grow your revenue, but it’s not quite as simple as logging in and uploading your inventory. When it comes to selling your products on Amazon there are two different business models: Amazon Seller and Amazon Vendor. Let’s break them down and determine which combination might be the best for you.

What does it mean to be an Amazon Vendor (1P)?

Being an Amazon Vendor essentially means that you are a wholesale supplier, selling your products to Amazon. This means that you receive a purchase order from Amazon, fulfill the purchase order, and sell your products directly to Amazon. In rare cases, direct fulfillment is an option even as a vendor, however it requires robust warehousing and fulfillment capabilities. It’s important to note that you must be invited by Amazon to be a Vendor.

Most often first-party vendors are brands that may sell D2C on other channels, but in this instance Amazon is now the retailer that is selling your product. This means that you set the list price, but the selling price is determined by the market. Each year when you negotiate your contract with Amazon you negotiate your margins directly.

Although Amazon is now the owner and seller of the products, you are still responsible for setting up the item and for providing some of the product content. Amazon will make some optimizations on the product detail page for you, but you must also make efforts to ensure that your product record is complete and accurate, to ensure that your products sell and Amazon wants to place more purchase orders with you. You also still have the ability to advertise and run promotions for your products so they sell faster and Amazon continues to buy more from you.

Vendor Central

First-party Amazon vendors manage their relationship with Amazon through Vendor Central. That’s where you can make updates to product listings, view purchase orders, and access available reporting.

What are the benefits of being a first-party Amazon vendor?

Selling as a first-party vendor on Amazon tends to be easier than third-party selling. This is because it works like a wholesaling model. By fulfilling Amazon’s purchase order, you can take advantage of a much more hands-off approach, while still taking advantage of the volume of consumers shopping on Amazon.

Furthermore, you can take advantage of the trust that comes with being an Amazon Vendor. This allows you to take advantage of Amazon’s reputation for fast shipping and easy returns. When potential customers see ‘Sold By Amazon’ you get the added value of perceived trust from consumers.

What are some of the downsides of being an Amazon Vendor?

When you sell your products directly to Amazon you no longer have control over your products. One aspect of that includes pricing. Since Amazon determines the price of your product depending on the market, and you are acting as a wholesale supplier for Amazon, you may have lower profit margins. Typically, on an annual basis, you negotiate your margins directly with Amazon. This can mean there is less predictability than a 3P Seller that pays a flat percentage fee.

While Amazon Vendors have access to more marketing and advertising options which can be a bonus, they are still responsible for any additional costs associated with them. For example, in order to move product quickly, an Amazon Vendor may wish to run Sponsored Product Advertisements on Amazon which they pay for on a cost-per-click basis. The Vendor is responsible for all fees and managing all campaigns to market and advertise the products.

What does it mean to be an Amazon Seller (3P)?

When you’re a third-party Amazon Seller you use the Amazon marketplace as a channel to sell your products directly to consumers shopping on Amazon. You are responsible for the product listings, marketing and advertising, as well as the fulfillment of any orders. Amazon third-party sellers have access to different types of fulfillment options. 

The fulfillment options for third-party sellers include: FBA (fulfilled by Amazon), FBM (fulfilled by merchant) and SFP (seller fulfilled prime). 

FBA (Fulfilled by Amazon)

FBA is a shipment method where you as a seller send your inventory to different Amazon fulfillment centers. Amazon stores them in their warehouses, and when a customer orders it, they are responsible for shipping it and for the customer service. You, as the seller, pay a fee depending on the size and weight of the products.

FBM (Fulfilled by Merchant)

FBM is a method in which you as the seller are responsible for storing, shipping and all customer support when your product is purchased by a consumer on Amazon. 

SFP (Seller Fulfilled Prime)

For some businesses with extensive shipping capabilities, is the best choice for fulfillment. This is a method where you commit to fulfilling orders that meet Prime qualifications of two-day delivery, at no additional cost to the customer, but do not utilize Amazon’s warehouses and shipping. 

Third-party sellers on Amazon can access their seller accounts in a portal known as Seller Central. 

What are the benefits of being an Amazon Seller?

A major benefit of being an Amazon Seller is that you have more control over your prices. This means that you can maximize your margins on this channel. As an Amazon Seller you often pay a flat rate with fees. With this there can be more predictability for the costs, as opposed to Amazon Vendors that have contractual margins. Also, as a seller, you get more access to the information about the consumers that are buying your products. 

What are the downsides of being an Amazon Seller?

Being an Amazon Seller means that you’re responsible for the product listing pages, product details, marketing, and more. That can often require a lot of time and effort to ensure that each listing is optimized. It’s challenging to manage large product catalogs.

Can you be both a 1P Vendor and a 3P Seller?

Yes. Brands can utilize both business models when selling on Amazon, as they can serve different purposes. 

Oftentimes a hybrid model is a great way to sell your products on Amazon. You can utilize Amazon Vendor to sell high volume items in your catalog with consistency, and take advantage of selling long-tail items or excess stock via the third-party model.

No matter your business model, selling on Amazon can help you reach your growth and revenue targets. With more and more consumers heading to Amazon to discover and purchase products every day, it’s more imperative than ever that you’re optimizing your customer’s experience on this massive eCommerce platform.

More than that, since consumers have so many options to choose from on Amazon, it’s important that you offer the best possible product experiences.

can help you offer superior product experiences through Akeneo PIM, Akeneo Activation for Amazon Vendor, and other seamless connections wherever you sell your products. Reach out to an Akeneo expert today to learn more.