{"id":7760,"date":"2019-01-11T03:15:36","date_gmt":"2019-01-11T03:15:36","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/amazon-fulfillment\/amazon-choose-seller-central-vendor-central\/"},"modified":"2024-04-25T10:01:41","modified_gmt":"2024-04-25T17:01:41","slug":"amazon-choose-seller-central-vendor-central","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/amazon-fulfillment\/amazon-choose-seller-central-vendor-central\/","title":{"rendered":"Selling on Amazon: How to Choose Seller Central or Vendor Central"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Selling your products via Amazon comes with a <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/amazon-fulfillment\/selecting-the-right-amazon-fulfillment-option\/\">multitude of Amazon fulfillment options<\/a><\/span>, one of which is deciding between Vendor Central or Seller Central.<\/span><br \/>\n<span style=\"font-weight: 400;\">The<\/span> <span style=\"font-weight: 400;\">most important difference between Amazon <\/span><a href=\"https:\/\/sellercentral.amazon.com\/\"><span style=\"color: #3366ff;\"><span style=\"font-weight: 400;\">Vendor Central<\/span><\/span><\/a><span style=\"font-weight: 400;\"> and\u00a0 Amazon <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/sellercentral.amazon.com\/\"><span style=\"font-weight: 400;\">Seller Central<\/span><\/a><\/span><span style=\"font-weight: 400;\"> is the point of contact who actually sells your products. Choosing Vendor Central means Amazon buys your products from you, then resells them to their customers. With Seller Central you are selling your products directly to customers, through the Amazon marketplace.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article is intended to explain the full scope, \u00a0benefits and drawbacks of each so that you can make an informed decision on which option best suits your company&#8217;s needs.<\/span><\/p>\n<h2><b>What is Amazon Seller Central?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Amazon Seller Central is the interface that is used by merchants to market and sell their products directly to customers within the Amazon marketplace. An Amazon Seller Central account is considered a marketplace or third-party Amazon seller (3P).The Amazon seller is responsible for setting up and maintaining their seller account.<\/span><\/p>\n<p>Amazon offers both individual and\u00a0professional\u00a0seller accounts. While the\u00a0professional\u00a0seller accounts\u00a0require a monthly subscription, most businesses will opt for the\u00a0professional\u00a0seller accounts\u00a0as it offers analytics tools, preferential marketing treatment, and a slew of other features a professional Amazon seller will need to scale their business.<\/p>\n<p><span style=\"font-weight: 400;\">As a third-party Amazon seller there are two options for fulfilling orders that are received through the Amazon marketplace. You can handle all of the tasks of shipping, customer service, and returns for the orders yourself or through a third-party logistics provider (3PL) you choose. Or you can choose to allow Amazon to handle this process by enrolling in the <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/amazon-fulfillment\/selecting-the-right-amazon-fulfillment-option\/\"><span style=\"font-weight: 400;\"><span style=\"color: #3366ff;\">Fulfilled by Amazon (FBA)<\/span><\/span><\/a><span style=\"font-weight: 400;\"> program. If you use FBA, your company name can be added to the order page; your customers will see \u201csold by BRAND X and Fulfilled by Amazon\u201d when they buy your products. The number of successful FBA sellers continues to grow and there is a growing demand to <a href=\"https:\/\/boostedcommerce.com\/am-i-able-to-sell-my-fba-business\/\">buy FBA businesses<\/a>.<\/span><\/p>\n<h3><strong>Quick list of Amazon Seller Central benefits: <\/strong><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Open to anyone<\/span><\/li>\n<li>Control of the seller account<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sell directly to Amazon\u2019s customers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Flexible logistical options<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Quick payment terms<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Brand controls retail pricing<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Limited advertising options<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Complex sales process<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Enhanced Brand Content<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><b>What is Amazon Vendor Central?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Amazon Vendor Central is most often used by direct manufacturers and distributors. If you sell through Vendor Central you are considered a first-party seller. You are acting as the supplier, selling your products directly to Amazon in bulk. Registration on Vendor Central is strictly by invitation only. Often times, sellers start with Seller Central and generate demand for their products to entice Amazon to buy their product in bulk through the Vendor Central program, like other ecommerce or brick and mortar retail channels (i.e. Walmart, Target, Bestbuy). If a company is selling through Vendor Central the phrase \u201cships from and sold by Amazon\u201d appears on the order page. <\/span><\/p>\n<h3><strong>Quick list of Amazon Vendor Central benefits: <\/strong><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Invite only<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sell to Amazon in bulk<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Fixed logistical options<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Traditional payment terms<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Amazon controls retail pricing<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Multiple advertising options<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Traditional sales process<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A+ content<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><b>The Differences Between Seller Central &amp; Vendor Central<\/b><\/h2>\n<p>&nbsp;<\/p>\n<h3><strong>Amazon Vendor Central Pros<\/strong><\/h3>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h4><b>Consumer confidence<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Selling your products through Vendor Central as a first-party seller ensures customer confidence by way of the Amazon name recognition. Customers will likely feel assured and confident placing an order through the Amazon platform, rather than a third-party site with less name recognition.<\/span><\/p>\n<ul>\n<li>\n<h4><b> Expanded advertising opportunities<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><a href=\"https:\/\/advertising.amazon.com\/\"><span style=\"font-weight: 400;\">Amazon Marketing Services<\/span><\/a><span style=\"font-weight: 400;\"> (AMS) can provide companies with a powerful tool that contains multiple options for getting products in front of shoppers. It allows vendors to drive demand through keyword-targeted ad campaigns that are designed to increase traffic to specific product pages on Amazon. Both sellers and vendors have access to AMS, however Vendor Central provides more powerful options for running ad campaigns with AMS.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Managing advertising campaigns and strategically typing keywords into your product page is crucial for success. <\/span><\/p>\n<ul>\n<li>\n<h4><b> Simplified business model<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The process of working with Amazon is simpler through Vendor Central than through Seller Central. For a vendor, the main focus is on filling orders to Amazon, billing, and avoiding chargebacks. As a seller, especially when utilizing FBA, you are responsible for such things as sales reconciliation, lost inventory, tax liabilities, and many other costs. Having a primary buyer in Amazon is far simpler than servicing hundreds, if not thousands, of individual buyers an Amazon seller may encounter with Seller Central.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h4><b> Enhanced content and marketing tools<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you are selling via Vendor Central, Amazon offers the option to participate in promotional programs like <\/span><a href=\"https:\/\/Users\/michaelbrumm\/Local Sites\/dclcorp-phase-2-launch\/app\/public.amazon.com\/gp\/help\/customer\/display.html?nodeId=200902190\"><span style=\"font-weight: 400;\">Subscribe &amp; Save<\/span><\/a><span style=\"font-weight: 400;\"> (Amazon based subscription service) and <\/span><a href=\"https:\/\/Users\/michaelbrumm\/Local Sites\/dclcorp-phase-2-launch\/app\/public.amazon.com\/gp\/vine\/help\"><span style=\"font-weight: 400;\">Amazon Vine<\/span><\/a><span style=\"font-weight: 400;\">, which sends your products to top reviewers before they actually appear on the Amazon storefront. With an increased emphasis on the value of consumer feedback as it relates to the quality of a product, user generated content can play an important role in boosting brand trust and generating more sales.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Amazon Vendor Central Cons<\/strong><\/h3>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h4><b> Price control<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Amazon does not strictly adhere to the Minimum Advertised Pricing (MAP) guidelines from manufacturers. What this means is that Amazon can and will adjust their retail prices at any time based on their internal algorithms. This could wind up costing a seller additional revenue if it lowers their margins.<\/span><\/p>\n<ul>\n<li>\n<h4><b> Logistical requirements<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Amazon has very <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/understanding-fulfillment-costs-on-amazon-an-explanation-of-fba-fees\/\">specific and rigid guidelines<\/a><\/span> for filling their purchase orders. Vendors that have problems maintaining their stock or quickly fulfilling orders can experience significant chargebacks which can eat into the Amazon sellers profits.<\/span><\/p>\n<ul>\n<li>\n<h4><strong>Lack of sales channel diversification\u00a0<\/strong><\/h4>\n<\/li>\n<\/ul>\n<p>In many cases, Amazon is the largest single buyer for many brands\/sellers. While this can be a for business, it&#8217;s also very risky for sellers to be reliant on a single buyer. Experienced sellers want to have multiple sales channels with the bulk of their buys coming from their own ecommerce storefront. In early 2019, <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/Users\/michaelbrumm\/Local Sites\/dclcorp-phase-2-launch\/app\/public.bloomberg.com\/news\/articles\/2019-05-28\/amazon-is-poised-to-unleash-long-feared-purge-of-small-suppliers\">Amazon abruptly stopped buying from a lot of sellers<\/a><\/span> with no warning or explanation. This left a lot sellers scrambling to make up for the lost sales revenue.<\/p>\n<ul>\n<li>\n<h4>Loss of brand control<\/h4>\n<\/li>\n<\/ul>\n<p>Product or company branding can be a huge differentiator and advantage for sellers if leveraged and managed properly. However, Amazon sellers lose a lot of control of their brand messaging once they sell it to Amazon via the Vendor Central program. Sellers lose control of how their product is represented in the Amazon marketplace, products are shipped in a brown Amazon box, and the sellers ability to customize the buyer experience is limited.<\/p>\n<h3><strong>Amazon Seller Central Pros<\/strong><\/h3>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h4><b> Analytical data<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Seller Central provides significant amounts of consumer data at no charge to the seller. You are allowed access to Amazon customer data that can better inform consumer and product trends like who is buying products and where they are located. This can be invaluable when determining a <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/3pl\/guide-third-party-logistics-3pl-fulfillment-providers\/\"><span style=\"font-weight: 400;\">third-party logistic<\/span><\/a><\/span><span style=\"font-weight: 400;\"> (3PL) provider; figuring out where it\u2019s best to ship from, and if splitting inventory across multiple fulfillment centers could help save money and reduce transit time.<\/span><\/p>\n<ul>\n<li>\n<h4><b> Pricing control<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As the seller, you have the ability to control the price you set, so if you are using other retail channels besides Amazon you can maintain uniformity. Additionally, if you need to change your price to match a competitor that can automatically be enabled.<\/span><\/p>\n<ul>\n<li><b> Messaging control<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Occasionally sellers discover that their retail partners or unauthorized 3rd party sellers list older versions of their products without their consent. These listings usually include limited content and images. The only way to control and stop these unauthorized listings is through a Seller Central account that is enrolled in <\/span><a href=\"https:\/\/brandservices.amazon.com\/?ld=BRUSSA&amp;tag=googhydr-20&amp;hvadid=237595339175&amp;hvpos=1t2&amp;hvexid=&amp;hvnetw=g&amp;hvrand=1670612803212370958&amp;hvpone=&amp;hvptwo=&amp;hvqmt=b&amp;hvdev=c&amp;ref=pd_sl_51utl38aci_b&amp;hvtargid=kwd-404125042207\"><span style=\"font-weight: 400;\">Amazon\u2019s brand registry<\/span><\/a><span style=\"font-weight: 400;\"> program.<\/span><\/p>\n<ul>\n<li>\n<h4>Inventory control<\/h4>\n<\/li>\n<\/ul>\n<p>If you&#8217;re a small to medium sized business, being able to adapt to your customers&#8217; needs can make or break your business. This is especially true if you product a limited amount of product. Having physical control of your own inventory gives you the ability to adapt to market demands (consumer or vendor).<\/p>\n<h3><strong>Amazon Seller Central Cons<\/strong><\/h3>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h4><b>Fulfillment costs<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Sometimes the fulfillment and\/or shipping costs can limit the ability to sell lower priced items via Amazon. The minimum charge for non-media FBA items that are one pound or less is currently $2.41, which does not include the commission that Amazon charges on top of that. These can quickly add up depending on the size and weight of the products that you are selling. You&#8217;ll need to have a strong understanding of the <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/understanding-fulfillment-costs-on-amazon-an-explanation-of-fba-fees\/\">Amazon FBA costs<\/a><\/span> and incorporate it into your decision making process.<\/span><\/p>\n<ul>\n<li>\n<h4>Sales and marketing<\/h4>\n<\/li>\n<\/ul>\n<p>While being responsible for your own sales and marketing is a must for a lot of Amazon sellers, some sellers may not have the resources or knowledge to do so. Like any standalone storefront in the Amazon marketplace, the Amazon seller will need to constantly manage the store by updating the product description, marketing their products through various avenues, and adjusting to the consumer behavior.<\/p>\n<p>&nbsp;<\/p>\n<h3>Amazon Seller Central: Fulfilled by Amazon (FBA), Seller Fulfilled Prime (SFP), or Merchant Fulfilled Network (MFN)<\/h3>\n<p>As a third-party seller in the Amazon Seller Central program, you have a three options on how to fulfill your orders. Fulfilled by Amazon (FBA) is the service where Amazon stores and fulfills your orders from the Amazon warehouses. They process millions of orders per month through this service on behalf of third-party sellers. Seller Fulfilled Prime (SFP) and Merchant Fulfilled Network (MFN) is the program when the third party seller opts to store and fulfill Amazon orders themselves or through a third party logistics company (3PL) they hire and manage.<\/p>\n<p>All three Amazon Seller Central programs have their pros and cons which we covered extensively in our article <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/amazon-fulfillment\/selecting-the-right-amazon-fulfillment-option\/\">Selecting the Right Amazon Fulfillment<\/a><\/span>. In addition, you might find <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/amazon-fulfillment\/the-amazon-3pl-trap\/\">The Amazon 3PL Trap<\/a><\/span> and <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/advantages-for-companies-using-seller-fulfilled-prime\/\">6 Advantages to using Amazon Seller Fulfilled Prime<\/a><\/span> insightful.<\/p>\n<p>&nbsp;<\/p>\n<h2><b>Bottom Line: Why Your Decision Matters<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Amazon has increasingly become the first website that consumers visit when they are making their buying decisions. If a company has not created a strategy to reach these customers they can be missing out an a major piece of the online marketplace. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">It can be critical to create a marketing strategy that is specific to Amazon to make sure that you are getting the most out of your ecommerce business.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>At DCL we have years of experience supporting both Vendor Central and Seller Central for selling on Amazon. Learn more about <span style=\"text-decoration: underline;\"><span style=\"color: #3366ff; text-decoration: underline;\">3PL like ourselves can support your Amazon business<\/span> <\/span>by reading this article (check out the infographic below) or\u00a0 reach out &#8211; we\u2019d love to hear from you! You can learn more on DCL Logistics&#8217; <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/services\/ecommerce-fulfillment\/amazon-fulfillment-services\/\">Amazon fulfillment services<\/a><\/span>,\u00a0or check out\u00a0<a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/resources\/integrations\/\"><span style=\"color: #3366ff;\">the many companies we work with<\/span><\/a>\u00a0to ensure great logistics support.\u00a0<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/company\/contact-us\/\">Send us a note<\/a>\u00a0<\/span>to connect about how we can help your company grow.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5420\" src=\"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-content\/uploads\/2019\/01\/Amazon-3PL-Flowchart-1.jpg\" alt=\"How a 3PL supports your Amazon business\" width=\"724\" height=\"1380\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Selling your products via Amazon comes with a multitude of Amazon fulfillment options, one of which is deciding between Vendor Central or Seller Central. The most important difference between Amazon Vendor Central and\u00a0 Amazon Seller Central is the point of contact who actually sells your products. Choosing Vendor Central means Amazon buys your products from [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"template-blog-chapters.php","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[1],"tags":[2044],"class_list":["post-7760","post","type-post","status-publish","format-standard","hentry","category-amazon-fulfillment","tag-online-marketplace"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Amazon Seller Central vs. Vendor Central | DCL Logistics<\/title>\n<meta name=\"description\" content=\"A guide for selling on Amazon and choosing the right option between Seller Central and Vendor Central, including infographics to help.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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