business

What is the difference between a “seller” and a “vendor”?

When you sell to customers on Amazon, you’re selling as a third-party seller. This means you’re not directly selling to Amazon, but rather through their marketplace.

In the past, Amazon customers would go to the Amazon website, browse products, and then add an item to their cart and purchase it. That purchase would be fulfilled by Amazon directly. Now more and more of these sales are being fulfilled by third-party sellers, who are selling through the Amazon marketplace. In this case, the customer goes to the Amazon website, finds a product they want to buy, add it to their cart, and then purchase it through a Seller Central account.

In either case (Amazon fulfilling or a third-party sellers), the customer pays Amazon directly. However, when a third-party seller fulfills an order they will receive an email from Amazon letting them know there is an order that needs to be fulfilled. The sellers is responsible for fulfilling this order themselves and then sending tracking information back to Amazon so that they can update their customer with tracking information for their shipment.

Amazon Seller Central is an individual sellers account where sellers are able to manage their own seller business. This does not require a monthly subscription fee, but it does charge $0.99 per item sold plus other selling fees, which vary by category.

Amazon Seller Central Benefits :

  1. Open to anyone
  2. Control of the sellers account
  3. Sell directly to Amazon’s customers
  4. Flexible logistical options
  5. Quick payment terms
  6. Brand controls retail pricing
  7. Limited advertising options
  8. Complex sales process
  9. Enhanced Brand Content
  10. Solid Analytics tools

What is Amazon Vendor Central?

Amazon Vendor Central is for companies who sell products by the case or pallet to Amazon. As an Amazon Vendor, you order large quantities from a manufacturer and have them shipped directly to one of Amazon’s warehouses. Amazon will then sell the product on their website, tracking inventory and handling customer service.

Vendor Central most often used by direct manufacturers and distributors, but it can use by anyone who sells wholesale goods. In fact, a growing number of sellers start with Sellers Central and generate demand for their products to entice Amazon to buy their product in bulk through the Vendor Central program.

If you are selling through Vendor Central, you considered a first-party seller because you are selling your products directly to Amazon in bulk. This means when someone purchases your product on Amazon, they purchase it from Amazon rather than you as a third-party sellers. If a company is selling through Vendor Central the phrase “ships from and sold by Amazon” appears on the order page (as opposed to mentioning your brand). Know more on amazon seller vs vendor central on zonbase.com

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