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Vendor – discover Amazon’s exclusive programme!

Vendor is one of the sales models on Amazon's platform. It is an exclusive programme that requires a special invitation to join. Surprisingly, only 0.5% of Amazon sellers participate in this model! Find out how to receive an invitation to the programme and what it consists of.
Vendor – discover Amazon’s exclusive programme!

Amazon Seller vs Vendor – learn about the differences

 

Amazon offers two selling models, and these are: Amazon Seller Central and Amazon Vendor Central.

Seller – who is your customer?

 

The standard model, available to all new sellers is Seller, which involves selling as a third party, directly to the final customer (consumer).

As a Seller you have a choice between two sales models:

  • Amazon FBM (you are responsible for the entire sales and shipment process)
  • Amazon FBA (Amazon takes responsibility for the shipment from their logistic centres)

We wrote about these models more precisely in the article: FBA or FBM, which logistics model on Amazon to choose?

Vendor – who is your customer?

 

When you are a Vendor, transactions are not made in a B2C model, but in a B2B model. You sell goods directly to Amazon, who then distributes them further. The sale is wholesale, Amazon manages all customer service, returns, and pricing.

Interesting fact: Amazon usually places orders for Vendor merchandise twice a week – on Mondays and Wednesdays.

Vendor – advantages and requirements

 

Receiving an invitation to join the Vendor programme may raise a number of questions. The numerous benefits of operating in this model come with certain requirements and challenges.

Advantages of Amazon Vendor

 

The benefits of joining Amazon Vendor Central are:

  • Permanent distribution channel – orders are regular (usually twice a week, sometimes even more often), which gives greater certainty of financial liquidity and allows for better planning of orders, production and logistics.
  • The optimisation of shipping time and costs – instead of multiple small shipments, you send your merchandise in bulk to Amazon’s warehouse. Orders are usually forwarded to the logistics centres relevant for the particular market. For Vendor DE, these are warehouses in Poland, the Czech Republic and Germany.
  • Prestige and improved brand recognition – products labelled as Prime are much more likely to receive an Amazon’s Choice badge, which has a positive impact on their perception by potential customers. Selling directly through Amazon increases credibility and enhances the brand status.
  • No end customer service – Amazon takes responsibility for all parcel packing and customer service matters, including returns and complaints about the products.
  • The ability to join Born2Run – a special programme where you can dedicate products to Amazon. This gives you the opportunity to list your goods on the platform quicker and fill Amazon’s stock.
  • Sales at net prices on an intra-Community supply basis.
  • Amazon Vine – within Vendor you can organise Vine credits which can be used to send merchandise to Amazon reviewers. This enables you to receive highly ranked product reviews.

Requirements and challenges of the Vendor model

 

Selling as a Vendor on Amazon (B2B model) involves certain requirements:

  • Amazon discount – when discussing joining the programme, Amazon asks for a special discount which is calculated on the basis of an algorithm.

However, you do not have to agree to the offered conditions immediately! If you decide to work with Gonito, our Team will take care of the discussions on joining Vendor Central and will help you negotiate favorable conditions.

  • Account optimisation – the invitation is generated through the Vendor Manager, a dedicated contact person on Amazon’s side. On the Seller’s side, it is necessary to prepare the relevant documentation to set up the account, as well as to send the product summary and price list.

Efficient implementation of the process is essential to achieve the first sale quickly and to exploit the full product potential. Gonito customers can count on us to take over the discussions with the Vendor Manager to ensure a smooth entry on Amazon Vendor Central.

  • Regional programme – the invitation is valid for a specific market only. If sales are progressing and Amazon is satisfied with the collaboration, they are likely to send an invitation to further markets.

Consider a situation where you already have distributors in other countries. If a product under the same ASIN is added on different marketplaces, then as the owner of the product, Amazon can shift sales to other marketplaces as well without sending an invitation.

How do I join the Vendor Programme?

 

Vendor Central is a closed platform, access can only be obtained by special invitation from Amazon. It is not possible to apply for membership or discuss joining with Amazon support. Amazon’s recruitment team sends an invitation to the programme to brands whose products are popular, attractive and sell well. It is also important to maintain high quality consumer service.

Interesting fact: A company which shows great potential but has not yet operated on Amazon can also receive an invitation to Vendor Central!

No one can guarantee that your company will receive such an invitation, but by working with us the probability that your offer and products will draw the interest of Amazon increases.

Why?

Because we will take care of every aspect of your sales – ensuring: a high level of customer service, good positioning of your offer and its appropriate presentation. We know which account metrics are most important and how to keep them at a proper level.

Do you have any questions? Contact us! 

Hybrid model

 

By deciding to join Vendor Central, you don’t have to give up Seller! The hybrid model is a compromise that allows you to use two accounts simultaneously. In this way, you enjoy the convenience and prestige of an Amazon Vendor account while continuing to sell B2C on your Amazon Seller account. Thus, you maximise your revenue by skilfully balancing the two models.

  • In the Vendor model, Amazon often places orders only for products with the highest potential that sell a lot easier. New, untested products are not instantly selected.
  • Holding a Seller account allows you to list items that have not yet been successful, but are generating interest – which will pave the way towards a Vendor account.

A parallel Seller account protects your sales in case all your Vendor merchandise sells out. If Amazon doesn’t order enough stock and the product disappears from the search, the brand’s position decreases. Having a second account ensures continued availability, without waiting for the goods to arrive at Amazon’s warehouse.

Summary

 

The Amazon Vendor Programme is not available to every seller. However, everyone can try to earn this invitation by a proper presentation of the offer and by maintaining appropriate account metrics, which mainly relate to the customer service.Customers are always at the centre of Amazon’s attention – if we provide them with a good product, as described and delivered efficiently – there is a chance that we can fight for a special invitation to the Vendor programme. However, the decision is always made by Amazon itself.

Adrian
Vendor Manager
Experienced sales expert on Amazon Vendor. Adrian is the leader of one of the teams serving Gonito's customers.