Post-pandemic, online shopping is fast gaining popularity. As people are confined to their homes, they choose to buy products from top e-commerce websites.
Amazon is a leading online marketplace in the US. Here are a few reasons to consider seller central on Amazon.
What are Vendor Central and Seller Central?
Amazon Vendor Central is a service for large manufacturers and distributors who want to sell their products directly to Amazon. As a vendor, you’ll work with Amazon to create a listing for your product, set prices, and manage inventory levels.
Amazon seller central is for small businesses and entrepreneurs who want to sell their products on Amazon. As a seller, you’ll create your listings, set your prices, and manage your own inventory.
Which One Should One Use It?
The answer to this question depends on a few factors, including the size of your business and the type of products you sell.
Here are fundamental reasons you might want to consider using seller central.
As A Seller, You Have More Control Over Your Listings
According to reports, around 150 million users used the Amazon mobile app in 2019.
When you are part of Vendor Central, Amazon is your sole customer. So, they get to set the final price of your products.
Sellers can list their items at whatever price they choose and how long they want. They also can make their items Prime-eligible to gain access to an even more significant number of buyers.
Sellers can respond directly to comments from customers and provide order tracking information for every purchase.
In contrast, vendors aren’t allowed to edit their product listings or manage inventory levels themselves–those things are all handled by Amazon staff instead. Vendors must submit a request to Amazon before making any changes that affect prices or availability.
That process can take up to three days for approval before the changes are made.
You’ll Get Paid Faster as A Seller
Vendor Central is an order fulfillment program, so products are shipped directly from Amazon’s warehouse–not yours.
When you work with Vendor Central, your payments will come in an annual net 30-day payment rather than purchase orders that could be calculated quarterly or even monthly.
Your payments may also be delayed if you don’t provide the requested product information or fail to meet the required selling performance metrics set by Amazon.
Sellers aren’t involved in shipping orders out to customers, so they’re free to focus on running their own business and growing it however they see fit.
Once an order is placed, the seller’s responsibility is to ship the product to the customer as quickly as possible. Sellers are paid after each sale based on the type of payment they choose (net 7-day, 10-day, or 15-day).
You Can Use Fulfillment by Amazon (FBA)
One of the benefits of using seller central is using Amazon’s FBA program.
FBA lets sellers store their products in Amazon’s fulfillment centers and have Amazon take care of shipping them out to customers. The service comes with a few fees, but it can be helpful for businesses that don’t want to manage their own shipping process.
Vendors cannot use FBA because their products are shipped directly from Amazon’s warehouse.
You Can Sell on Other Marketplaces
You can display your items on other marketplaces like eBay and Etsy as a seller.
It can be helpful if you want to expand your reach to new buyers or if you’re looking for different ways to sell your products.
Vendors cannot sell their products on any other marketplace besides Amazon.
You Can Use Your Shipping Carrier
Another benefit of using seller central is that you’re not limited to using Amazon’s shipping services.
Sellers have the option to use any shipping carrier they choose, which can be helpful if you have a preferred carrier you’ve worked within the past.
Vendors must use Amazon’s carrier to send their products out to customers. It can be inconvenient if you have a shipping carrier that you prefer to work with.
You Don’t Have to Bother About Inventory Management
Amazon handles your product’s storage, packing, and shipping for you.
It can be helpful if you struggle with managing inventory or keeping up with shipments.
It would help if you kept in mind that, as a vendor, Amazon may request an initial shipment of 500 units to test out their process before placing an order for more than that number. At that point, you’ll need to ship the items yourself–or let Amazon handle it.
Sellers are responsible for managing their inventory levels and shipping processes. It means they’re able to use any third-party logistics software (such as Stitch Labs) they want to make things easier on themselves!
Finally, it’s important to note that both seller central and vendor central work with merchants who sell items in bulk (B2B), but these platforms are better suited for businesses that want to manage their inventory, fulfill orders themselves, or sell on other marketplaces.