When looking to start selling on Amazon, it’s a good idea to choose a good business model. In the case of Amazon Seller Central, the vendor sells their products independently. However, there is a second, different model. What is worth knowing about Amazon Vendor Central?
Amazon Vendor Central is a model in which a seller provides a wholesale quantity of goods to Amazon. The platform then sells it on their behalf. In Amazon Vendor Central, the seller and Amazon supplier become one person, also referred to as a “first-party seller.” How exactly does Vendor Central work?
In addition, sellers choosing Amazon Vendor Central are required to upload a list of products, including bulk prices, that the platform buys from the seller. Overall, a Marketplace is the seller. Therefore, every aspect of fulfilling orders is its responsibility. In Amazon Seller Central, all of these activities belong to third-party sellers.
Amazon Vendor Central is different from the FBA model in terms of sales and logistics, but there are key similarities. Goods are shipped to Amazon’s warehouse and stored there. In addition, it is the Marketplace that handles order fulfillment and shipping, and is responsible for customer service. In both cases, complex contract terms should be meticulously agreed upon in advance.
At Vendor Central, Amazon buys the merchandise, then takes responsibility for the entire retail process. When you sell goods to Amazon, the platform pays you the wholesale price. It then sets the retail price itself, which will allow it to make higher margins. In the Amazon Seller Central model, everything is on the seller’s side, including the customer service associated with the purchase.
In Amazon Vendor Central, it is not necessary to register VAT numbers in other countries. This is where Amazon FBA, known as Amazon Seller Central, comes in. In this model, this is done by the seller, who retains ownership of the products and earns when they are sold to consumers. Seller is also responsible for setting the retail price, paying the platform a commission and fulfillment fees. In Amazon Vendor Central, unlike Amazon FBA, you earn the wholesale price. Amazon owns the products and, as mentioned, sets the retail price.
Amazon Seller Central gives the seller the ability to interact with customers, whereas Amazon Vendor Central does not. Unlike Seller Central, in Vendor Central it’s Amazon that takes care of everything except delivering the product that you, the Amazon supplier, send. That’s why in Amazon Vendor Central you make money on orders from Amazon, not from customers, as you do in Amazon Seller Central.
Amazon Vendor Central is an option for brands registered with EUIPO. However, it does not constitute an on-demand program like Amazon Seller Central, also called Amazon FBA. Here, the process of starting a sale depends on Amazon. Sellers are sought by recruiting teams, taking into account brands that Amazon deems likely to become real hits. The entire process, which you can earn money from, starts with receiving an email address and ends with signing up for the Amazon Vendor Central model.
By selling on Amazon Vendor Central, the seller’s account looks better in the eyes of customers. The Marketplace vendor has the opportunity to widely advertise the products they sell, which is an attractive option. Moreover, if you want to sell through this model, your credibility will be highlighted by the Amazon logo.
By taking advantage of the many different features of Amazon Vendor Central, including product promotions, your vendor account will make quite a splash in the marketplace. Each vendor operating under the Amazon Vendor Central model receives extended access to Amazon Marketing Services (AMS). Amazon does everything it can to ensure that sales of vendor products reach the highest levels. If you sell to Amazon, you can do a lot for your brand.
If you want to sell your products according to the Amazon Vendor Central model, make sure to advertise your brand. In the case of Seller Central (FBA model), your marketplace may not necessarily fare well, but for Amazon Vendor Central, it is important.
Take care of professional customer service to sell your products widely. This way, researchers will get your email address and invite you to join the Amazon Vendor Central model. In it, you will gain many additional advertising opportunities through the Amazon Marketing Services (AMS) platform.
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With our help, you can sell your products on Amazon in markets in countries such as Italy, Spain, England, France and Germany. Additionally, we have experience in selling on Amazon in the US . One product on Amazon can therefore reach many customers. Profit more on other platforms as well, thanks to good sales on Amazon.
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