Amazon Vendor Central (1P) or Amazon Seller Central (3P) – What’s the Difference?

Amazon Selling Programs Defined

AMAZON VENDOR CENTRAL

1P: Sell first-party, wholesale, directly to Amazon Retail, using the Vendor Central interface.

AMAZON SELLER CENTRAL

3P: Sell third-party to consumers through the Amazon marketplace, using the Seller Central interface (whether the brand sets up own 3P seller account, or works with partner 3P sellers focused on the brand).

AMAZON FBA

You sell it, we ship it. Amazon has created one of the most advanced fulfillment networks in the world, and your business can benefit from our expertise. With Fulfillment by Amazon (FBA), you store your products in Amazon’s fulfillment centers, and we pick, pack, ship, and provide customer service for these products.(Amazon)

Amazon Seller Trends

amazon seller central vs amazon vendor central

We have noticed a growing trend of brands wanting more control while selling on Amazon.  More and more brands are setting up their own third-party seller accounts, or seeking out companies to move them away from Amazon Vendor Central and onto Amazon Seller Central.

In this blog post, we will discuss both the positive and negative aspects of both Amazon selling platforms.  We will also outline any potential pitfalls.

Control of Your Brand on Amazon

AMAZON VENDOR CENTRAL (1P)

As a wholesaler to Amazon Retail, a brand owner can list their products accurately and completely, and ensure that their products are represented in the fashion that they want. And if the brand is willing to pay Amazon Retail substantially for premium product detail page merchandising (called A+ detail pages), they can get superior embedded images and videos on its pages – features not currently available through third-party listings.

AMAZON SELLER CENTRAL (3P)

If working through a third-party seller or as a third-party seller themselves, the brand owner may have a slightly higher level of control over their brand (if they are proactive in submitting data), as they don’t have to deal with Amazon Retail deciding to alter the branded content for its own purposes (something that can be avoided if the brand owner submits data through the third-party Brand Registry program).

What Selling Program is better? Advantage: EVEN

Control Over Pricing on Amazon

AMAZON VENDOR CENTRAL (1P)

States that it will honor a brand owner’s MAP (minimum advertised price) policies. And yet, that is almost never true. Because Amazon Retail gives itself the “out” that it can match any other seller’s price (sellers on Amazon.com or other sales channels), it takes only one MAP violator anywhere for Amazon Retail to lower its prices and break MAP. Once the price erosion starts, it is very hard to get Amazon Retail back to MAP. And given that Amazon Retail’s long view means it is prepared to lose money on individual transactions, the price erosion often can go so far as to make the MAP price points meaningless as they are only intermittently followed on Amazon.

AMAZON SELLER CENTRAL (3P)

As a third-party seller, the brand owner has 100% control over the prices they charge. If the brand owner instead works closely with a trusted third-party seller, that control over pricing can be tight, as long as the third-party seller honors the policy.

What Selling Program is better? Advantage: Amazon Seller Central

Amazon Sales Velocity

AMAZON VENDOR CENTRAL (1P)

If there are already third-party sellers of the brand on Amazon, and now Amazon Retail starts carrying the product, then yes overall sales may grow but the majority of sales will shift almost completely away from existing third-party sales to Amazon Retail sales, where the brand owner has a lot less control over pricing. In these cases,, brand owners may also lose future margin percentages because they are forced to sell to Amazon at wholesale.

AMAZON SELLER CENTRAL (3P)

Third-party sellers who opt to use Amazon’s Fulfillment by Amazon (FBA) program, and price their products competitively can scale their sales more quickly and have complete control over their brands and pricing margins.

What Selling Program is better? Advantage: Amazon Seller Central

Amazon Customer Services/Support Service

AMAZON VENDOR CENTRAL (1P)

Support from Amazon Retail is basically non-existent , especially if you are not a huge national retail brand or distributor.

AMAZON SELLER CENTRAL (3P)

As a third-party seller, you have access to seller central support services. Support will answer general questions and help you fix problems with your listing, aid with inventory issues, account set up and payments.

What Selling Program is better? Advantage: Amazon Seller Central

Overall Amazon Selling Cost

AMAZON VENDOR CENTRAL (1P)

Amazon Retail will negotiate for the lowest possible wholesale pricing. They also will request a payment of 4-10% to help bolster start up efforts to sell your products.. Typically, as sales increase, Amazon Retail might attempt to re-negotiate better wholesale pricing, or request more fees for marketing, advertising and support services.

AMAZON SELLER CENTRAL (3P)

Through the third-party channel, the commission fee that is due to Amazon is fixed by category as a percentage of the selling price (typically between 8%-20%).  The rev-share is usually 15%.  There are no additional rev-share fees. If the third-party seller is using Amazon’s FBA program, additional fulfillment costs are added to each shipped order.  In conclusion, we give the advantage to third-party, as your overall rev-share is typically below 25%.

What Selling Program is better? Advantage: Amazon Seller Central

Overall Amazon Selling Margins

AMAZON VENDOR CENTRAL (1P)

If you opt to sell through Amazon Retail, you will produce typical wholesale margins.

AMAZON SELLER CENTRAL (3P)

If the Amazon seller opts to sell as a third-party seller, they can produce retail margins. However, the seller should expect to pay selling fees (8-15%) or potential FBA operational and fulfillment fees.

What Selling Program is better? Advantage: Amazon Seller Central

Amazon Marketing & Promotional Programs

AMAZON VENDOR CENTRAL (1P)

There are numerous marketing and merchandising options available through Amazon Retail than through the third-party platform.  What types of programs?  Creating a Store Page, A+ Detail Content, Vendor Powered Coupons, Headline Ads, and the Amazon Vine program.

AMAZON SELLER CENTRAL (3P)

Third-party sellers can create a pricing promotion through Sponsored Product Ads and Amazon Marketing Service programs can be used to drive awareness of third-party offers.  However, compared to Amazon Retail, third party sellers just don’t have as many options.

What Selling Program is better? Advantage: Amazon Vendor Central

Staying in Stock while Selling on Amazon

AMAZON VENDOR CENTRAL (1P)

It’s quite common for Amazon Retail to not manage stock all the time, often unpredictably leading brands to have no product coverage. Amazon Retail often seeks to get the full catalog from a brand initially, but will slim down what it carries over time, though rarely will it notify the brand that Amazon Retail has chosen to stop carrying certain items.

AMAZON SELLER CENTRAL (3P)

Alternatively when a brand sells as a third-party seller themselves, the brand has complete control over when and what product is made available for sale on Amazon.

What Selling Program is better? Advantage: Amazon Seller Central

Overall Account Management

AMAZON VENDOR CENTRAL (1P)

When selling on Amazon Retail, you will need an account manager to oversee orders and log into the AVC interface to review the account and review the selling analytics.  When logged into the Amazon Vendor Central interface, the account manager will be able to review inventory levels.

AMAZON SELLER CENTRAL (3P)

If selling as a third-party seller, and shipping directly from a warehouse, merchants should assume that dedicated staff will be needed to handle customer inquiries,  process orders, inventory replenishment, pricing,  and manage product feeds.  Staying focused on your Amazon account is critical to keeping your Amazon Seller rating high, thus increasing your chances to score well in the Amazon algorithm.

**NOTE: if using Amazon FBA, third party sellers dramatically reduce the amount of effort in running their day to day Amazon operations. With Amazon FBA, Amazon handles shipping and customer disputes, including customer returns.

What Selling Program is better? Advantage: Slight advantage Amazon Vendor Central

Amazon Payments

AMAZON VENDOR CENTRAL (1P)

Amazon Retail typically offers 2% Net 30, Net 60, or Net 90 terms,

AMAZON SELLER CENTRAL (3P)

Third-party sellers are typically paid every 14 days or every 7 days if you are approved for 7 day payments.

What Selling Program is better? Advantage: Amazon Seller Central

Amazon International Selling

AMAZON VENDOR CENTRAL (1P)

If you sell to Amazon.com Retail, you will only be selling within the US and sold via Amazon.com.  To sell on Amazon.ca or Amazon.com.mx, you must create separate vendor central accounts.

AMAZON SELLER CENTRAL (3P)

If you sell through a third-party account, (whether with FBA or merchant fulfilled orders), selling in Mexico and Canada is an option when you create a North American account.  Likewise, merchants can sell in Europe if they create a unified European seller central account.

What Selling Program is better? Advantage: Amazon Seller Central

Amazon Reporting Capabilities

AMAZON VENDOR CENTRAL (1L)

Amazon Retail Analytics do cost extra but offer valuable insights – these analytic capabilities are not available to third-party sellers.

Amazon Seller Central (3PL)

Third-party Seller Central portal produces comprehensive reports, suitable and adequate enough to run your business.

394 thoughts on “Amazon Vendor Central (1P) or Amazon Seller Central (3P) – What’s the Difference?”

  1. I have been surfing online more than three hours lately, but I
    by no means found any interesting article like yours.
    It is lovely worth sufficient for me. Personally, if all website
    owners and bloggers made good content as you probably did, the internet can be much more useful than ever before.
    I am sure this post has touched all the internet people, its really really nice
    paragraph on building up new web site. Hi! I’ve been reading your web site for a long time now and finally got the bravery to go ahead and give you
    a shout out from Lubbock Tx! Just wanted to say keep up the great work!
    http://pepsi.net

  2. Pingback: Google
  3. Pingback: buy cbd oil
  4. Pingback: cbd oil
  5. Pingback: Dresses
  6. Pingback: Hacksaw blades
  7. Pingback: Kitchener Music
  8. Pingback: Blue Dream Strain
  9. Pingback: men weekend bag
  10. Pingback: free robux
  11. Pingback: VISA FOR INDIA
  12. Pingback: free past life
  13. Pingback: myprepaidcenter
  14. Pingback: good lawyer
  15. Pingback: india visa usa
  16. Pingback: russian surnames
  17. Pingback: gls training
  18. Pingback: mobile price in bd
  19. Pingback: guitar licks
  20. Pingback: USA shopping sites
  21. Pingback: cbd oil for dogs
  22. Pingback: Breakfast Cafe
  23. Pingback: module prestashop
  24. Pingback: IoT Solutions
  25. Pingback: Cannabis Oil
  26. Pingback: catollux.md
  27. Pingback: Editorials
  28. Pingback: Moon Rocks
  29. Pingback: sàn forex uy tín
  30. Pingback: legal steroids
  31. Pingback: MrPornGeek
  32. Pingback: Handmade Leather
  33. Pingback: acne treatment
  34. Pingback: recessed lighting
  35. Pingback: cbd oil near me
  36. Pingback: fapidy.com
  37. Pingback: SIP Trunks
  38. Pingback: Kingpen
  39. Pingback: private chef
  40. Pingback: Softwashing
  41. Pingback: CBD oil
  42. Pingback: RoyalCBD.com
  43. Pingback: Phone Repair
  44. Pingback: BUY WEED ONLINE
  45. Pingback: Dank cartrifges
  46. Pingback: sildamax for sale
  47. Pingback: Elite IT
  48. Pingback: strap on dildo
  49. Pingback: is CBD legal
  50. Pingback: click here
  51. Pingback: mua nhà quy nhơn
  52. Pingback: flogger
  53. Pingback: Best Sex Toys
  54. Pingback: best crm
  55. Pingback: buy CBD products
  56. Pingback: buy CBD near me
  57. Pingback: Vape Shop Near Me
  58. Pingback: Thc Oil
  59. Pingback: holiday to andaman
  60. Pingback: related definition
  61. Pingback: sexual bondage
  62. Pingback: kiu
  63. Pingback: Loan App
  64. Pingback: we vibe couples
  65. Pingback: baratang andaman
  66. Pingback: safestore auto
  67. Pingback: gsuite promo code
  68. Pingback: belladona
  69. Pingback: virtual visa card
  70. Pingback: education
  71. Pingback: dank vapes
  72. Pingback: best CBD oil
  73. Pingback: THC Vape Juice
  74. Pingback: candles
  75. Pingback: sexy couple cams
  76. Pingback: sexyshows
  77. Pingback: sexy
  78. Pingback: CBD gummies
  79. Pingback: Google
  80. Pingback: best CBD oil
  81. Pingback: Coinpunk
  82. Pingback: coinchomp
  83. Pingback: dildo
  84. Pingback: فیلم سکسی
  85. Pingback: THC vape oil
  86. Pingback: Dank carts
  87. Pingback: mp3
  88. Pingback: safestore auto
  89. Pingback: THC vape oil
  90. Pingback: Author
  91. Pingback: Dank carts
  92. Pingback: Dank vapes
  93. Pingback: Dank cartridges
  94. Pingback: Buy weed online
  95. Pingback: CBD
  96. Pingback: CBD
  97. Pingback: CBD
  98. Pingback: CBD
  99. Pingback: CBD
  100. Pingback: CBD
  101. Pingback: CBD
  102. Pingback: CBD
  103. Pingback: CBD
  104. Pingback: CBD
  105. Pingback: CBD
  106. Pingback: CBD
  107. Pingback: CBD
  108. Pingback: CBD
  109. Pingback: CBD
  110. Pingback: hq
  111. Pingback: buy CBD oil
  112. Pingback: CBD oil for sale
  113. Pingback: CBD oil for sale
  114. Pingback: buy CBD oil
  115. Pingback: best CBD oil
  116. Pingback: CBD oil
  117. Pingback: CBD oil for sale
  118. Pingback: buy CBD oil
  119. Pingback: best CBD oil
  120. Pingback: CBD oil for sale
  121. Pingback: buy CBD oil
  122. Pingback: best CBD oil
  123. Pingback: CBD oil for sale
  124. Pingback: CBD for sale
  125. Pingback: CBD for sale
  126. Pingback: CBD for sale
  127. Pingback: CBD oil
  128. Pingback: CBD for sale
  129. Pingback: best CBD
  130. Pingback: royal cbd
  131. Pingback: cbd for sale
  132. Pingback: best cbd
  133. Pingback: buy cbd
  134. Pingback: royalcbd
  135. Pingback: juul mango pods
  136. Pingback: Exotic carts
  137. Pingback: CBD gummies
  138. Pingback: CBD gummies
  139. Pingback: app for pc
  140. Pingback: free app download
  141. Pingback: apps for pc
  142. Pingback: nill
  143. Pingback: oral sex kit
  144. Pingback: stroker toy
  145. Pingback: Recommended
  146. Pingback: adam and eve dildo
  147. Pingback: Buy Weed Online
  148. Pingback: CBD soft gels
  149. Pingback: CBD oil 1000mg
  150. Pingback: linked here
  151. Pingback: buy CBD oil
  152. Pingback: Weed Wax
  153. Pingback: penis ring review
  154. Pingback: net mağaza
  155. Pingback: male stroker
  156. Pingback: huge dildo
  157. Pingback: CBS oil benefits
  158. Pingback: Glock Store
  159. Pingback: barbering scissors
  160. Pingback: backlink
  161. Pingback: yasaka scissors
  162. Pingback: Email
  163. Pingback: cbd oil Australia
  164. Pingback: fast money
  165. Pingback: VAPE CARTRIDGES
  166. Pingback: curved vibrator
  167. Pingback: grid inverter
  168. Pingback: mens rings online
  169. Pingback: rabbit female toy
  170. Pingback: free app download
  171. Pingback: app free download
  172. Pingback: moonrocks
  173. Pingback: Rick simpson oil
  174. Pingback: ban hoc thong minh
  175. Pingback: best CBD oil
  176. Pingback: sex drug
  177. Pingback: canadian cialis
  178. Pingback: best CBD oil
  179. Pingback: best CBD gummies
  180. Pingback: Academic
  181. Pingback: free proxies
  182. Pingback: Royal CBD
  183. Pingback: best CBD oil
  184. Pingback: CBD oil 250mg
  185. Pingback: Royal CBD gummies
  186. Pingback: Royal CBD pills
  187. Pingback: Royal CBD products
  188. Pingback: CBD salve
  189. Pingback: carte prepagate
  190. Pingback: buy CBD oil
  191. Pingback: vape shop near me
  192. Pingback: roulette software
  193. Pingback: knight rider kitt
  194. Pingback: Buy cialis online
  195. Pingback: bitcoin casino
  196. Pingback: Buy cialis online
  197. Pingback: kratom
  198. Pingback: levitra canada
  199. Pingback: buy cialis

Comments are closed.