Do you know that you can not only sell on Amazon but sell to Amazon? The Amazon Vendor Central program allows you to sell your products to Amazon at wholesale prices. It is an exclusive, invitation-only program that allows select suppliers to sell their products directly to Amazon while benefiting from streamlined logistics, customer service, and improved visibility. 

You may have seen some product listings with labels like “Ship from Amazon.com” and “Sold by Amazon.com”. This means that Amazon purchased the product from that company and is reselling it to customers. 

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Read on as we go through all you need to know about Amazon Vendor Central and how to get an Amazon Vendor Central account.  

What is Amazon Vendor Central? 

Amazon Vendor Central is an invitation-only platform designed for manufacturers and distributors to sell their products directly to Amazon as wholesale suppliers.

This platform gives businesses the opportunity to leverage Amazon's extensive customer base, reducing costs and increasing profit margins. 

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Unlike Amazon Seller Central, which is an open platform for businesses to sell directly to Amazon's customers, Vendor Central is tailored for those looking to supply products in bulk to Amazon. As a vendor or first-party seller, Amazon itself is your customer. 

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Vendor Central can be particularly beneficial if you are seeking to expand your reach without the direct involvement of dealing with customers. 

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Here's an overview of the key features available within Amazon Vendor Central:

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1. Order management: Vendors receive purchase orders from Amazon describing what they need to buy. This feature simplifies the ordering process, ensuring that vendors know exactly what to supply. Vendors can also provide shipment details directly within Vendor Central.
2. Product information management: The items section allows vendors to upload images, edit costs, and provide other product-related information which is crucial for maintaining accurate and appealing product listings on Amazon. The Merchandising feature allows vendors to handle the marketing of their products and access features like Amazon Vine and A+ Content to increase product visibility and attract customers.
3. Payment: In the Invoice and Remittance section, vendors can find their invoices and payment details.
4. Advertising: The Advertising Console, previously known as Amazon Marketing Services (AMS), allows vendors to manage ad campaigns and promote products on Amazon.
5. Reporting: Vendors can access various reports to understand how their business is performing on Amazon. Some reports are accessible directly in Vendor Central, while others require Amazon Retail Analytics (ARA) for deeper analysis.

Benefits of becoming an Amazon vendor 

Becoming an Amazon Vendor offers several significant benefits especially if you are a manufacturer or distributor looking to sell your products directly to Amazon.

Access to Amazon’s customer base

By selling through Amazon Vendor Central, you can gain direct access to Amazon's vast customer base, and reach millions of active customers worldwide. This exposure significantly increases the potential for sales and brand awareness. 

Reduced costs, increased profit margins

Selling products directly to Amazon at wholesale prices allows you to reduce the costs associated with distribution, packaging, and shipping. This reduction could lead to higher profit margins, making your partnership with Amazon financially beneficial.  

Streamlined order management 

Amazon Vendor Central provides a centralized platform for managing orders from Amazon, which simplifies inventory management and order fulfillment processes. This streamlining makes it easier to maintain optimal inventory levels and ensure timely deliveries. 

Better marketing and advertising opportunities 

With Amazon Vendor Central, you have access to a range of marketing and advertising tools, including Amazon Marketing Services (AMS), which allows you to run targeted ad campaigns to increase product visibility and sales on Amazon. These tools are designed to help you effectively promote your products and reach a wider audience. 

Increased customer trust 

Customers will see a product sold through Vendor Central display a "Sold By Amazon" label, which can increase their confidence and trust in your products. This label signifies that the product is backed by Amazon's reputation and customer service standards. 

Downsides of becoming an Amazon vendor 

While becoming an Amazon vendor has its advantages, there are also a few downsides:

Reduced profit margins

Amazon determines the selling price of your products, which may often lead to reduced profit margins. Amazon may not strictly adhere to Minimum Advertised Pricing guidelines, resulting in potential loss of revenue as an Amazon vendor. 

Limited brand control

Amazon has the right to modify aspects of your product’s branding, significantly limiting your control over your brand messaging and identity.

Following Amazon’s order fulfillment criteria

As an Amazon vendor, you must follow Amazon's established guidelines for filling purchase orders. Failure to meet these standards can result in significant chargebacks, negatively impacting your profits.  

Lack of support and timely resolution 

Dealing with issues on Amazon Vendor Central can be challenging due to limited access to support and slow resolution times. If you don't have a dedicated Vendor manager, resolving both minor and major issues can be more time-consuming and difficult. 

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How to become a vendor on the Amazon marketplace 

To become a vendor on the Amazon Marketplace, it's important to understand that the process is largely invitation-based, with Amazon's vendor team reaching out to potential vendors. However, there are steps you can take to position your brand for consideration.

Build a successful brand

The best way to attract Amazon's attention is by building a successful brand that generates high volumes of sales both on and off Amazon. Focus on creating high-quality products and accumulating positive product reviews. Amazon is more likely to consider brands that demonstrate consistency in sales, customer satisfaction, and positive feedback 

Optimize your presence on Amazon

To secure an invitation to become an Amazon vendor, you want to ensure your sales and customer satisfaction rates are high. 

Take advantage of Amazon's tools, such as A+ content to enhance your product listings and set yourself apart from your competitors. 

Demonstrate reliability and partnership

Amazon values reliability and partnership. You want to showcase your ability to deliver high-quality products and your willingness to work closely with Amazon. This can strengthen your case for inclusion in the vendor program. Remember, Amazon has its own reputation to protect, and partnering with reliable brands is crucial for maintaining that reputation.

Engage with Amazon proactively 

Although directly reaching out to Amazon via email or social media platforms like LinkedIn may not guarantee an invitation, it doesn't hurt to express your interest in becoming a vendor. 

Reaching out to your Amazon account manager and showing genuine curiosity about the vendor program can be a starting point. If provided with an application to request an invitation, fill it out promptly and make your interest known. 

How to log into your Amazon Vendor Central account 

To log in to your Amazon Vendor Central account, follow these steps:

1. Go to the Amazon Vendor Central site at https://vendorcentral.amazon.com/ 
2. Sign in by clicking the “Sign In” button on the page and enter your email address and password.
3. Click the “Sign In” button to access your Amazon Vendor Central account. 
4. If you're unable to log in due to a forgotten password or passkey issue, select the "Forgot Password" option on the login page. Enter the email address or mobile phone number connected to your Amazon Vendor Central account. You may then receive a verification code to use to access your account. Once you have access, you can reset your credentials.

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Once logged in, you can access all of Amazon's Vendor features and tools for managing your relationship with Amazon. 

What is the difference between Amazon Vendor Central and Amazon Seller Central? 

The primary differences between Amazon Vendor Central and Amazon Seller Central revolve around who sells and buys the product, amongst other factors. Here are some key differences between Amazon Vendor Central and Amazon Seller Central: 

Seller 

• Amazon Vendor Central: Amazon purchases products from vendors and handles inventory management, pricing, and shipping. This model is more focused on B2B transactions, with Amazon acting as the intermediary between the vendor and the end consumer.
• Amazon Seller Central: Third-party sellers list their products on Amazon and are responsible for managing their own inventory, setting prices, and shipping products to customers. This model allows for direct interaction with customers and gives sellers more control over their business operations.

Buyer

• Amazon Vendor Central: As a vendor, you only have one customer - Amazon. This means that as a supplier, you supply Amazon with your products while they handle the management and shipping of your products to the end consumers. 
• Amazon Seller Central: With Amazon Seller Central, you can sell your products to as many customers on the marketplace. This means you will deal directly with your customers, handling any questions or queries they may have. 

Payment Structure

• Amazon Vendor Central: Amazon buys products from the vendor and pays them directly. Vendors are compensated for the products they supply to Amazon, regardless of the sales made to end consumers.
• Amazon Seller Central: Payments are made directly to the seller for each sale. Sellers earn revenue based on the sales they make through their listings.

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Order fulfillment

• Amazon Vendor Central: As a vendor, you don't have to worry about fulfilling orders, as Amazon handles the entire process from start to finish. 
• Amazon Seller Central: With Amazon Seller Central, you can choose to handle the order fulfillment process or partner with FBA and let Amazon do it for you.

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Control 

• Amazon Vendor Central: As an Amazon vendor, Amazon handles the entire process, from managing inventory to distribution, pricing, shipping, and customer service. 
• Amazon Seller Central: As an Amazon seller, you have a lot more control. You can create your product listings, price your products, and be involved in the entire selling process.

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Can you have an Amazon Vendor Central account and an Amazon Seller Central account?

Yes, having an Amazon Vendor Central account and an Amazon Seller Central account simultaneously is possible.

In fact, having both accounts can be beneficial if you manufacture or distribute products and also want to sell directly to consumers on Amazon. 

However, we advise that you manage both accounts carefully to avoid conflicts of interest or policy violations.

Amazon Vendor Central - How much does it cost?  

As an Amazon vendor, there are a few fees you should keep in mind. Here are some fees associated with selling as an Amazon Vendor:

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1. Co-op fees: This is a fee that you pay for Amazon hosting your product. In other words, you are paying for the benefits associated with the Amazon brand. 
2. Shipping fees: As an Amazon vendor, you are responsible for getting your products to Amazon fulfillment centers. These shipping fees can vary depending on the size of your product and distance. If Amazon is responsible for shipping, you may still need to cover some additional fees. 
3. Referral fees: Amazon charges referral fees for each product sold on Amazon. These fees may vary depending on the product category. However, this typically ranges between 6% to 45%. 
4. Chargebacks: Amazon may charge you for various chargebacks and deductions like product returns, customer refunds, and more. 
5. Unexpected cost: As an Amazon vendor, you might encounter unexpected costs related to incorrect items, improper packaging, and other administrative fees. These costs can vary and are not fixed. 

How much does Amazon pay vendors? 

Amazon uses a wholesale pricing model for Vendor Central, which means vendors are paid according to the agreed wholesale price for their products. This price is determined during negotiations between Amazon and the vendor and can vary widely depending on the product category, the volume of products purchased, and other factors. 

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Once you agree on a price with Amazon and a sale is made, you will receive your payment within an agreed period. 

As a vendor, you can choose between different payment options Amazon offers. 

These options are 2/30 Net 31, 1/60 Net 61, or Net 90. These options determine the payment terms, with discounts applied for earlier payments. 

For example, if you choose the 2/30 Net 31, you will get your payments within 31 days and Amazon will get a 2% discount if they pay within 30 days. 

Final thoughts on Amazon Vendor Central

Selling through Amazon Vendor Central may not be for everyone but if you're a manufacturer or supplier, taking advantage of Amazon’s brand reputation could help you increase customer satisfaction and sales. What's more, Amazon’s sophisticated infrastructure can help you streamline your operations and reduce costs. 

To secure an invitation to Amazon Vendor Central it is important to offer excellent product offerings, 

maintain a strong brand presence, and demonstrate reliability. 

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