The Amazon platform offers 2 sales models – Amazon Seller Central and Amazon Central Vendor. How does Amazon Vendor work and what actually is Amazon Seller?
The basic model for new sellers is the Seller model, in which you sell directly to the end customer (consumer) as a third party on the platform.
As a Seller, you can choose between 2 sales models:
We extensively explored these models in our previous article. FBA or FBM – Which Amazon logistics model to choose?
So how does Amazon Vendor work exactly? Vendor transactions are done in a B2B model, not a B2C model. You sell goods directly to Amazon, which then distributes them further. Sales are wholesale, with Amazon handling all the customer service, returns, and also pricing.
Interesting fact: Amazon usually places orders for Vendor goods twice a week – on Mondays and Wednesdays.
Receiving an invitation to join the Vendor Programme can spark many questions. The many benefits of operating in this model come with certain requirements and challenges.
The benefits of joining the program are provided below.
There are certain requirements for selling through the Vendor (B2B) model on Amazon.
However, you are not required to immediately agree to the proposed terms. If you decide to work with Gonito, our team will take care of the discussions regarding joining Amazon Central Vendor and help you negotiate favourable terms.
The efficient execution of the process is crucial in order to achieve the first sale and realise the full product potential. Gonito customers can rely on us to take over discussions with the Vendor Manager to ensure a smooth entry into Amazon Vendor Central.
This also applies to the German marketplace, i.e. Vendor Amazon de (Vendor Central Amazon DE).
Not everyone can be a Vendor. It is a closed platform that requires special invitation to access. It is not possible to apply to join or speak to Amazon support. Amazon’s recruitment team sends an invitation to the programme to brands offering products which are popular, attractive and sell well. It is also important to maintain a high level of consumer service.
Interesting fact: Companies that show great potential but are not yet operating on Amazon can also be invited to the Vendor programme.
No one can guarantee that your company will receive such an invitation. However, working with us, you can increase the likelihood that your offer and products are what Amazon is interested in.
Because we will thoroughly take care of every aspect of your sale by providing a high level of service to your customer and ensuring proper positioning and presentation of your offer. We understand which account metrics are most important and how to maintain them at the appropriate level.
Do you have any questions regarding how does Amazon Vendor work? Contact us!
You don’t have to give up on Seller if you join Amazon Central Vendor. The hybrid model is a compromise that allows you to use two different accounts simultaneously. This way, you will enjoy the convenience and prestige of an Amazon Vendor account. At the same time, you’ll continue to sell B2C on an Amazon Seller account. As such, you maximise your revenue by skilfully balancing the two models.
Having a Seller account in parallel allows you to protect your sales in case all the Vendor merchandise is sold out. If Amazon orders too few goods and they disappear from search, the brand’s position deteriorates. The second account ensures continuity of product availability without having to wait for the goods to reach Amazon’s warehouse.
Read on synergy of Amazon Seller and Amazon Vendor models >
The Amazon Vendor Programme is not available to all sellers. However, everyone can try to get such an invitation by presenting their offer properly and maintaining the right account metrics (which mainly relate to customer service). Amazon is a consumer-oriented platform. If consumers are provided with a good product, which is well described and delivered efficiently, there is a chance that we will be able to earn a special invitation to the Vendor programme. But the final decision is always made by Amazon itself.