Amazon Vendor Central and Seller Central: Differences and Benefits of each Platform

Any brand looking to increase its e-commerce presence knows they need to be active on Amazon. However, diving head-first into the Amazon landscape can be difficult. To start selling on Amazon, you need to understand the intricacies of e-commerce and what Amazon’s unique platforms provide. Today, we’re going to walk through the advantages of Vendor Central vs. Seller Central to determine what best suits your brand.  

Vendor Central operates on an invitation-only basis where Amazon extends invitations to select brands based on set criteria. On this platform, brands act as suppliers, selling their products directly to Amazon, which then sells directly to customers on the brand’s behalf at attractive pricing. The key advantages of Vendor Central include:  

1. Access to Amazon Retail Experts: Vendor Central gives access to Amazon’s team of retail experts who provide a higher level of support compared to Seller Central. These experts offer insights and guidance to optimize listings, deal with product suppressions, and ultimately drive traffic and sales.  
2. Streamlined Operations: Vendor Central simplifies the selling process. Amazon buys the products directly from the brand and then handles all logistics, including warehousing, shipping, and customer service. Brands will also have an easier time dealing with third-party resellers undercutting prices as Amazon’s goal is to always be the most affordable offer on the market.  
3. Efficient Cash Flows & Ability to Pivot: As stated before, Vendor Central is invite-only while Seller Central is accessible to anyone willing to enroll. Vendors can use both depending on what drives more revenue across different products. Vendor Central also has a straightforward payment process with payments being made on pre-existing terms between Amazon and the brand, otherwise known as Co-Op agreements. The reliability of these cash flows allows Vendors a chance to be more dynamic with promotional spending, driving incremental revenue.  

Unlike Vendor Central, Seller Central is open to any individual or business wishing to sell products on Amazon’s marketplace. Brands act as independent sellers, listing their products directly on the marketplace, and managing their inventory, pricing, and potential fulfillment. You may think Vendor is the better choice since it is invite-only, but here are a few reasons brands opt for Seller Central:  

1. Brand Control: Seller Central gives brands direct control over pricing, branding, and customer interactions. Brands can change their prices at any time, segment customer audiences, and build their own brand integrity and reliability. In contrast, brands must actively defend their product offerings against other sellers undercutting their price.  
2. Fulfillment Options: Seller Central offers a choice of fulfillment methods, including Fulfillment by Amazon (FBA), where Amazon handles storage, packing, and shipping, or Fulfillment by Merchant (FBM), where sellers manage these aspects themselves. Well-connected brands can leverage this choice and cut down on freight costs through partnerships.  
3. Dynamic Growth Strategies: Seller Central provides increased promotional capabilities and a deeper strategy with the ability to control your price and promotional mediums. Access to Brand Tailored Promotions allows brands to target customers in segmented audiences to increase conversion while saving dollars. Direct interactions between brand and customer help create a fleshed-out brand presence on the platform.  

Ultimately, the decision between Vendor Central and Seller Central is unique to each brand based on the intricacies of their business and long-term goals for selling on the platform. Additionally, individual products brands sell could make Vendor or Seller Central more profitable based on dimensions, weight, contents, price, etc. These will determine the brand’s fulfillment fee cost on Seller Central. 

In conclusion, the business model of each brand will align better with the benefits of either Vendor Central or Seller Central. By evaluating your brand’s objectives and considering the distinct advantages of each platform, you can make an informed decision that supports your long-term growth strategy on Amazon.