How to Directly Sell to Amazon as Vendor || Manufacturer Through Amazon Vendor Central

Unlocking the Power of Amazon: Selling Your Products to the E-Commerce Giant

Did you know that the world’s largest online retailer, Amazon, offers a unique opportunity beyond just being a marketplace for your products? Yes, you can actually become a vendor for Amazon and sell your products directly to them at wholesale prices through their Vendor program.

If you’ve ever shopped on Amazon, you’ve probably noticed the “Ship from Amazon.com” and “Sold by Amazon.com” labels in the Buy Box. This indicates that Amazon purchased inventory in bulk from a brand and is now reselling it to its customers, much like any other traditional retailer.

But here’s the exciting part: becoming an Amazon vendor isn’t limited to household name brands. Small to medium-sized businesses can also tap into this opportunity, although it’s important to note that it’s not as straightforward as creating a regular account.

In this article, we’ll delve into the world of Amazon Vendor Central, explore how to sell your products directly to Amazon, and distinguish between Vendor Central and Seller Central.

Understanding Amazon Vendor Central

Amazon Vendor Central serves as the dedicated platform where vendors manage their wholesale business relationship with Amazon. Here, vendors can add products, handle purchase orders, and manage inventory shipments.

Within Vendor Central, Amazon initiates orders from you, and you respond by shipping the inventory and invoicing Amazon accordingly. Vendors on this platform can also take advantage of various programs like advertising, merchandising, and Amazon Vine.

The layout of Vendor Central is similar to Seller Central, with easy navigation tabs such as Orders, Items, Advertising, Merchandising, Reports, and Payments.

Can Anyone Sell Directly to Amazon?

While becoming an Amazon supplier isn’t as simple as creating a regular Amazon Seller account, the invitation-only Vendor Central program is where the distinction lies. To join, you must wait for contact from an Amazon brand manager who recognizes your potential contribution.

So, how do you increase your chances of receiving that coveted invitation?

Getting Invited to Become an Amazon Vendor

The most effective path to securing an invitation into Amazon’s vendor program is to establish yourself as an outstanding third-party seller. Amazon seeks products with consistent sales, positive seller reviews, high customer satisfaction, robust sales metrics, and consistent stock availability.

If your brand participates in trade shows, you may find Amazon brand managers scouting for brands that aren’t yet on Amazon’s radar. However, it’s important to note that while being the best seller possible is a wise goal, there’s no guarantee that Amazon will reach out to you.

Moreover, thanks to recent enhancements, brand-registered third-party sellers now enjoy access to many features previously exclusive to vendors, including A+ Content, Amazon Live, Brand Analytics, Amazon Storefronts, Amazon Vine, and various advertising tools. This might diminish the appeal of becoming a vendor for some brands.

Pros and Cons of Selling Directly to Amazon

Like any business opportunity, selling directly to Amazon has its advantages and drawbacks:

Pros:

  1. Profitability: You can sell your products at a profitable wholesale price to Amazon.
  2. Prime Positioning: Your listings are marked as “Ships From and Sold by Amazon.com,” enhancing visibility.
  3. Customer Support: Amazon handles all customer service and returns.
  4. Increased Sales: Amazon’s control over listings may boost sales.
  5. Hands-Off Approach: Running an Amazon business becomes worry-free.

Cons:

  1. Invite-Only: Vendor Central is invitation-based.
  2. Fees: Additional fees, including co-op fees, marketing fees, and more, can reduce margins.
  3. Price Negotiations: Amazon may negotiate purchase prices, leading to narrower margins.
  4. Pricing Control: You have limited control over pricing, impacting MAP agreements.
  5. Lack of Control: Less control over listings and inventory.
  6. Payment Terms: Amazon’s payment terms may cause cash flow challenges.

As you can see, the cons seem to outweigh the pros. If you receive an invitation, it’s crucial to thoroughly understand the terms and fees before committing.

Amazon Vendor Central vs. Amazon Seller Central

The primary difference between these two platforms lies in how you sell your products:

  • Vendor Central: You sell products at wholesale prices to Amazon.
  • Seller Central: You sell products at retail prices directly to consumers.

Which one suits your business best? The choice ultimately depends on your brand’s goals and strategies. In the past, Vendor Central held an edge due to exclusive marketing and advertising tools. However, Amazon has since extended many of these features to third-party sellers, leveling the playing field.

Plus, third-party sellers enjoy more control over their brand, listing content, and pricing. In contrast, Vendor Central means Amazon takes the reins, especially when it comes to pricing.

While signing up for Seller Central is accessible to anyone, Vendor Central remains an option primarily for high-performing brands.

In the end, both avenues offer viable ways to reach Amazon’s vast customer base.

The Decision to Sell Directly to Amazon

We hope this article has shed light on the possibilities within Amazon Vendor Central and the factors to consider. If you receive an invitation, carefully weigh the pros and cons to determine if becoming a vendor aligns with your business objectives.

If you have any further questions about Amazon Vendor Central, please feel free to share them in the comments below.

 

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top