Today, Amazon offers three programs for running your business:
- Seller Central;
- Vendor Central;
- Vendor Express.
Let's take a look at each of them in more detail so that you can understand which one of them will come to you.
What Is Amazon Seller Central and What Are Its Pros and Cons
Amazon Seller Central means sellers list, price as well as market their products. Anyone can use Amazon Seller Central to get started with selling in the marketplace. If you are a 3rd party seller, and you wanted Amazon buyers to see your inventories on the website, Amazon Seller Central Europe is the perfect option for you with Amazon FBA Europe. But, it pays to remember that before getting started with selling on Amazon, you first need to sign up and create your Amazon Seller Central Registration.
Though sellers need to put in more works and maybe more money in terms of fees, sellers tend to have more control as compared to vendors. They will need to pay some fees for every product per sale, and they will also have to manage their customer communication, fulfillment, and own pricing. The 3P sellers typically have more control on their products and also over their client base since if you are a vendor, you are selling items (buy orders) of your product or products to Amazon depending on the number of items they wanted to purchase. Amazon will then sell the products to your clients.
With Amazon Seller Central, those using it will get access to more detailed analytics which can help them boost their bottom line. In such case, they will be able to control the returns through heading off unhappy clients directly. Moreover, pricing control enables them to take advantage of periods of high demands and provide sales-something crucial to staying competitive.
Disbursement can be made within a few days and not weeks. This frees up money for the business and helps seller streamline purchasing and other processes.
Overall, sellers commonly see minimal sales than the vendors because they do not come with “Sold by Amazon” ad or endorsement. For numerous sellers, the added flexibility of this Amazon selling program is worth the reduction of sales.
Higher overheads as well as greater resources included in stock maintenance, customer support or shipping.
What Is Amazon Vendor Central and What Are Its Pros and Cons
Amazon Vendor Central pertains to web interface used by distributors and manufacturers. If you are selling through Vendor Central, you will be referred to as the first-party seller. You are acting as a supplier, selling and offering in bulk to Amazon. The registration on Vendor Central is mainly by invitation only.
Amazon Vendor Central is one of the high platforms of Amazon for interacting with brands that they have wholesale business relationships.
- User-Friendly and Highly Accessible Amazon Vendor Dashboard
This is one of the biggest of Amazon Vendor Central is its user-friendly and highly accessible Amazon Vendor Dashboard. You can access your vendor account. Also, the more information you obtain, the more chances of effectively analyzing and making sound business decisions and choices.
This guarantees access to Amazon marketing services, Amazon Pantry, and Amazon display advertising.
- Increased Interests on Your Products
There is an increased interest in your products from your discerning clients including business clients with resources that match their unique expectations.
- Better Marketing Opportunity
You will have much better marketing opportunities so you are allowed to make content or enhanced content pages showcasing products and its respective story and provides interactive product tours.
Landing pages can be customized easily with bullet points and relevant keywords added to the descriptions.
- With Amazon Vendor Central, it says that it works in net-60 terms. However, the disbursements are random are pay you in below 30 days entitles them to certain discount.
- Accessing customer support is a bit complicated as the vendor. Therefore, reversing charges or investigating charges can take longer than it does for sellers.
- Amazon charge backs often happen, and the minor oversight in the shipping requirements might cost you.
- Buyer data will be off limits, and you are not allowed to make direct contacts with the clients.
- Amazon can rewrite your listings, and this will affect the sales consequently.
- Updating a piece of text or image can take up about 48 hours before going live upon approval.
- You do not have much input on what Amazon will charge for the products. However, chances are their 50% mark-up will not be into your liking.
What Is Amazon Vendor Express What Are Its Pros and Cons
Amazon Vendor Express enables sellers to expose products to millions of customers all over the world. The Amazon purchases products directly from the vendor and then handles the entire cost of shipping customer service, customer return and merchandising.
It was in the year 2015 that Amazon provided a more flexible and reliable third option which is the Amazon Vendor Express. This allows sellers’ transition into vendor accounts. Sell their items to Amazon instead of selling these directly to customers without needing an invitation.
- You can conveniently opt for direct fulfillments or drop ship.
- This does not charge anything for storage and handling.
- You will begin getting bulk orders the moment a product sells.
- In signing up, you will be required sometimes to send free merchandise samples, and this might not be easy especially if your inventory is costly, very eclectic and fragile.
- Amazon tends to purchase in volume and will pay you less than the other retailers, therefore, you can expect to sell more products. However, this isn’t necessarily to make profits.
- You do not have control over customer experience or sale.
- Negotiations tend to be inflexible, however, research indicates that they’ll be willing to purchase for about $1 or even above what they offer initially.
Through a short email announcement of Amazon, users were informed that in March, Amazon Vendor Express would be closed. Amazon stated that they are looking for means to enhance selling experiences on Amazon and upon careful evaluations; they have decided to retire this program and refocus on other selling programs instead. The company also said that they'd stop issuing orders of products as of May 21 and will entirely shut the program on January 2, 2019.
Now this program is closed, the process of transition to two other available programs is in progress. Therefore, if you are a member, consider what you should choose: Seller Central or Vendor Central.
Amazon offers multiple options for the sellers when starting to put their products online. The traditional seller outlets are Amazon Seller Central, Amazon Vendor Central, and the Amazon Vendor Express. Choosing the best Amazon selling programs is possible if you take the time to weigh the pros and cons.