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Amazon Seller is the main model that a seller joins after creating their account on Amazon. It allows for B2C retail sales, i.e., directly to the end consumer. There are two types of logistics that can be used in this model – FBM and FBA.
The Amazon Vendor programme is an exclusive programme available by invitation only to selected sellers. It allows you to sell bulk quantities of goods in a B2B model. Amazon is the recipient of the orders and then sells the good to the consumers.
Key differences betwen the sales models:
|Amazon Seller||Amazon Vendor|
|Availability||Model is available by default after creating and launching an Amazon account||Model is available only to people invited by Amazon to designated marketplaces. Exclusive programme.|
|Logistics||Possibility of choosing betwen FBM, FBA or using SFP – a hybrid solution.||Logistics in FBA model. Amazon regularly submits bulk orders for goods – it pays for packaging, sales, delivery, and customer service.|
|Products sold||Any products
(Allowed by Amazon
|Amazon selects products in which it is interested. These are products with sales history that are in high demand.|
|Retail prices||The price is determined by the seller.||The retail price is determined by Amazon.|
|Ads opportunities||Access to limited ads option -harder to achieve high conversion. You can only make use of organic ranking on your own.||More advertising options are available in Amazon Ads, making it easier to achieve higher conversion rates. Access to the Born2Run programme. Opportunity to use Amazon boost for organic positioning. Bonus Vine Credits received.|
|Amazon Prime||Access to Prime is limited in case of FBM. The programme only becomes available upon FBA qualification.||Prime availability for all products.|
|A+ Content||A+ access is only available to owners of brands registered in the Amazon Brand Registry or to owners of new brands that participate in the programmes.
Launchpad exclusively on Amazon – additional requirements must be met.
|A+ Content here also requires registration in the Amazon Brand Registry. Additionally, A++ is available for selected top sellers in the respective categories.|
It is not always possible to choose one right selling model for a particular business. Fortunately, it is possible to use both models at the same time. A hybrid solution gives you greater flexibility when it comes to selling, as well as increased security and additional business opportunities. It is important to have a well-developed strategy in order to avoid mistakes and pitfalls.
See: How to use the synergy of Amazon models: Vendor and Seller – Damian Wiszowaty, CEO Gonito
What are the biggest advantages of Amazon Vendor and Amazon Seller synergy?
1. Bigger control over product availability
Amazon sometimes incorrectly estimates the number of products ordered. There may be a situation where all items sent on Vendor are sold out. In such a case, the listing is removed from the search engine. The solution is a Seller account where the product is available at all times. This is a good way to make sure that products don’t sell out and sales keep going.
2. Ability to launch new products
Amazon carefully selects products to Vendor programme and picks only those that will surely sell. New products which have no sales history will not interest Amazon. What then? The solution is to have a Seller account on which to build a sales history, so that we encourage Amazon to buy our products in bulk.
3. Control over retail prices
In the Vendor model, Amazon sets the prices and the seller has no influence on them. The final price can be too low or high, which is often the case with new products. By entering goods into a Seller account, Amazon’s algorithms can compare prices, adjusting their own to a similar level imposed by us.
Receiving an invitation to the exclusive Vendor programme does not mean you have to give up your Seller account altogether. A hybrid system will work well for brands that offer a variety of products and for companies that base their sales on changing collections.
These two solutions can be combined in any industry to get the benefits of both, while also minimizing the risks. Better risk distribution is one of the main arguments for a hybrid solution.
Amazon Seller and Amazon Vendor offer many opportunities – both separately and together. Do you want to use their synergy? Contact us! We will help you to optimise your sales on Amazon!