Earning money through amazon as been simplified by the new seller accounts. It has revolutionized the seller’s perception that only partnering with Amazon is the only way to pursue sales and money.
The new option allows a seller to trade directly with amazon, And as a counterpart, they will sell the goods for you. This plan is called amazon vendor and it’s entirely different from the amazon seller.
In this article, we walk you through the insights regarding the Amazon Vendor Central and seller account. In addition, we also will compare the programs for you to choose the precise one.
Amazon Vendor central
It’s an amazon portal to facilitate business between private vendors and amazon. Moreover, the success story of bookselling is also stitched to this platform in amazon.
The positive fact about the amazon vendor portal is that it greets both individual sellers and vendors. Those who have full distribution rights or authority of titles.
This program entitles the vendors to sell directly to amazon and amazon will sell the products to buyers in return. On the other hand, individual sellers pay amazon a specific fee and use the Amazon platform to sell their products to potential customers.
In vendor central web interface, the vendor receives payment from amazon every month on wholesale terms. If the buyer is purchasing a product from the vendor the product will have a note saying “In stock, shipped and sold by amazon.com.
Comparing amazon vendor and seller program features
It is better to compare both the programs to solve the confusion for the seller to choose the right one. There are a lot of things that differentiate both. They are as follows
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Pricing
Pricing is a significant part of online business. Those sellers who want complete control on pricing their products then amazon seller account is the best.
If you are a vendor who sells products to amazon they won’t have any right to change their product price. Amazon will take care of the pricing and it sometimes hurts. The prices once reduced to a minimum will not increase in an instant even though the competitors are grossing a nice profit at high prices.
Furthermore, if you are a seller central program holder the third party seller has all the right to set their price for a product.
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Tax
Amazon will charge a monthly VAT fee from the seller even if he doesn’t have any sales. The additional fee that amazon may charge are,
- Shippi9ng cost to amazon fulfilment centres
- International shipping and return cost
- Customer support cost
- Taxes and duties.
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Support
With vendor central account you will get help from amazon. if your brand is popular and paying a lot to amazon.
But with seller central, you can receive better support from amazon. Amazon helps to clear of the issues related to payments, inventory and listings.
Furthermore seller central includes changes regarding product titles, bullet points, descriptions, images and many more.
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Cost
In case of the cost, you have to confront a lot of negotiations from the amazon if your profit is increasing.
They negotiate with you as a vendor for 4 to 10% pay to dress up the slotting costs and for a better price.
But on the other hand with the seller account, you are safe from unnecessary costs. You have to pay an 8 to 20% standard fee for each product sale and on opting FBA you have to pay a little extra.
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Profit Margins
In amazon, they will frequently negotiate with the profit margins of the vendors and see whether the profit margins are levelling up.
In addition in vendor central, you can expect only the wholesale margins but on the contrary in seller account, you can expect to get retail margins.
Furthermore, if your profit margins are not increasing then they will look for other suppliers who offer better prices.
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Stock availability
Stock availability is a significant factor in the online market. Running out of stock can affect your sales and profit margin adversely. But in case of seller account, you can avoid this to a certain extent as you have the entire control of the stock.
But on the other hand in vendor seller account you cant avoid such a situation as the amazon is dealing with your stock. For amazon to inform you the out of stock it as to wait for a low inventory alert so it won’t give you much time for stock fulfilment.
In short, if our stock is ready then its easy to use any of the programs.
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Payment
Vendors who prefer amazon retail will have to hire separate third party firms to give amazon a proof that the goods were delivered to the concerned customers.
If you don’t have to take such risks it’s better to go for seller central accounts where you will be paid in every 14 days but the subtraction of sales commission and other FBA fees. Moreover, the payments are faster too.
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Customer service
In the case of vendor central, customer service is the best. Because Amazon takes care of all the aspect in terms of customer support includes problems like frauds and infringement.
On the other hand, the seller central partners can depend on FBA to take care of customer service.
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Selling internationally
As a seller, if you have to take your products to the international level then it is better for you to choose Seller central.
In vendor central, sellers can only merchandise in the united states marketplace.
Conclusion
On comparing both programs it is clear that opting seller central has more benefits than vendor central. However, if you are running a firm with a manufacturer or distributor then select vendor central for best results.
Always gather up your patience until you get rooted on the platform. Until then manage your accounts and payments carefully.
