If you own an eCommerce, it is very likely that you have considered . However, you may also have noticed that Amazon offers two selling options: Amazon Seller and Amazon Vendor. So what is the difference between Amazon Seller and Amazon Vendor?
And more importantly, which one should you choose?
Let’s go there…
What is Amazon Seller
On Amazon Seller you own your products until consumers buy them. In other words, Amazon customers. The platform used for this model is Amazon Seller Central. From here you will have to take care of shipments, customer service or returns.
Regarding logistics, you can choose between doing it yourself Fulfilled by Merchant (FBM), or delegate it to Amazon, through the Fulfilled by Amazon program.
- If you decide to send the products yourself (FBM), you must bear in mind that these have to specify a delivery cost. In addition, the packaging will also be at your expense. As explained by the consultant and expert in marketplaces Mercedes Fevre, “It is essential that those who opt for this option always have delivery times and possible geographies up to date.”
- On the contrary, If you decide to delegate to Amazon (FBA), it will take care of everything, including product returns. In this case, the products must be stored in the marketplace warehouses. «The cost of FBA depends on the size and time in the warehouse. In general it is even cheaper than other couriers. They are very competitive rates and there are many options”explains Fevre. This modality allows access to the Prime seal, Amazon’s subscription system, as long as there is stock of that product in the Amazon warehouse. If there is no stock, the seal is lost.
A priori, the second option seems the most comfortable, however, each one should think about which is the modality that more compensates them in economic terms and in resource expenditure. “The general recommendation between FBM and FBA is dependent on item rotation and upcoming promotions. If it is not sold, nor is there any forecast of sale, it makes more sense that you keep it in your warehouse (if you have it) », says Fevre. In both cases, the average commission per item sold is 15%. In both cases, sellers have access to powerful Amazon advertising tools, such as Amazon Ads.
What is Amazon Vendor
While in Amazon Seller you sell your products directly to Amazon customers, now, in , it is Amazon itself that will buy your products so that he can sell them himself. The platform from which this model is operated is Amazon Vendor Central, thus acting as a provider for the Marketplace itself.
However, to be an Amazon Vendor, you need Amazon itself to select you for it. Due to a series of requirements, not everyone can be. The most frequent thing is that a company that starts out as an Amazon Seller and reaches a significant amount of sales receives an invitation from the marketplace.
By deciding to sell your products in this way, they will be sold by Amazon. This could give your customers extra confidence in purchasing them.
This is, without a doubt, a simpler way to sell your products than the previous one. In this case, the target audience you should be concerned about is Amazon. The important thing will be to adapt sales and business conditions to its demands.
Amazon Seller VS Amazon Seller
As we have seen, while being an Amazon Seller is within the reach of anyone, to be an Amazon Vendor you need an invitation from the marketplace itself, after demonstrating a series of minimum conditions.
In the first case, your target audience will be Amazon customers, while in the second, Amazon will sell for you. Although this simplifies the business and, perhaps, as we said, gives consumers greater confidence, on the other hand, the brand of the business itself fades under the “Amazon” brand. Thus, the owner of the eCommerce or entrepreneur will have to evaluate the costs and benefits of this happening.
Finally, while in Amazon Seller you set the prices of your products, in Amazon Vendor it is Amazon itself that will take care of itattending to their interests and adapting to the demands of the market at that time.
conclusion
As we can see, after analyzing the difference between Amazon Seller and Amazon Vendor, It is not easy to say which of these tools is better or worse, more beneficial or not. It depends on each one and on the aspirations, needs or scenarios in which you present your business.
Perhaps Amazon Vendor seems like a simpler option than Amazon Seller, however not all businesses have the capacity to be Amazon Vendor and many others will not be interested in it, due to the cost of losing control of selling directly to customers, as well as lose the visibility of the brand itself. “Seller is the option, especially if you start selling online”concludes Mercedes Fèvre.
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