What is Amazon Vendor Central? What You Need to Know

We’ve all heard of Amazon. The giant online marketplace has become a go-to platform for many consumers, with an average of 8,600 products bought every minute. Many small businesses aim to take advantage of this by offering their own products on the Amazon website.

However, there are multiple ways to sell products through Amazon, and Amazon Vender Central can be a great option.

Throughout this article we’re going to introduce you to this unique way of selling your products and walk you through everything you need to know, from scoring an invite to the program to seeing success.

What is Amazon Vendor Central?

Amazon Vendor Central is an invite-only platform that lets select businesses, manufacturers, and distributors sell wholesale products directly to Amazon, who then handles the sale to the end consumer. 

This creates a first-party relationship between Amazon and the customer, rather than the business selling third-party through Amazon’s marketplace. Amazon itself handles the product listings, fulfillment, customer service, and all other aspects of the sale.

Vendors are able to access their own hub via Amazon Vendor Central to input product information, find purchase orders, and monitor other details related to the sale of their products to Amazon. 

But the overall sale to the end customer is taken over by Amazon itself, making this a great way for businesses who don’t want to work directly with customers to sell products and generate revenue.

Amazon Vendor Central vs. Seller Central

Another way to sell products on Amazon is through Amazon Seller Central. It’s important to understand the distinction between the two so that you can figure out the best option for your business.

Source: Alloy.ai

Some of the main features of Amazon Vendor Central include:

• You must receive an invitation directly from Amazon to take part in this option
• Amazon places a bulk product purchase from you. While you set the wholesale price, Amazon gets to choose the end price that the customer pays.
• Amazon controls the product listings, fulfillment, and customer service.
• Amazon optimizes the product pages for you.
• Your products are automatically eligible for Amazon Prime.

Source: Reason Automation

And the main aspects of Amazon Seller Central are:

• Any business can join, no invitation needed
• You control all aspects of the sale, setting the price, creating product listings, shipping products, and handling customer service.
• You must optimize your own product pages, using the right keywords in your product titles and descriptions to boost visibility.
• Your products are only eligible for Amazon Prime if you use Seller Fulfilled Prime or Fulfillment by Amazon (FBA).

Both options have their ups and their downs. 

If you want control over the entire process, without leaving anything up to Amazon, you’ll want to use Seller Central. However, there’s no guarantee how many products you’ll sell—even if your product margins will be higher with each sale.

With Vendor Central, while you’re guaranteed your upfront sale of products to Amazon, you yield all additional control over the process. Although Amazon’s customer service and other features tend to be reliable, it’s up to you to decide if you want to hand the reins over to them.

But remember: Amazon Vendor Central is only accessible with an invite. So if you’re interested in that avenue, you’ll want to get Amazon’s attention so they extend an invitation. We’ll talk more about that shortly.

Pros and Cons of Amazon Vendor Central

Before we dive into the ways you can try to catch Amazon’s eye so they’ll send you an invitation to Amazon Vendor Central, let’s go over some pros and cons so you know exactly what you’d be getting into.

Pros of Amazon Vendor Central

These perks make Amazon Vendor Central a great option for many businesses, manufacturers, and distributors.

• You have a guaranteed bulk order. Selling products directly to consumers can be a bit of a gamble. You don’t know how many people will make a purchase or when—but selling in bulk to Amazon gets you a guaranteed sale of a large amount of product.
• Your customers feel confident ordering from Amazon. Amazon has a good reputation, lending credibility to your products and helping customers feel more confident in placing their orders.
• You get access to more Amazon marketing options. Use Amazon ads and other promotional services to ensure your products reach even more customers.
• You have a simplified business structure. Rather than having to deal with the sales and shipping to each individual buyer yourself, you ship a bulk order to Amazon’s fulfillment centers and let them handle the rest.

Cons of Amazon Vendor Central

There are a lot of perks to being an Amazon vendor. But it’s important to understand potential downsides as well before you get started.

• You don’t make as much money on a per product basis. Selling your products at wholesale means you’re not seeing quite as high of a product margin.
• You don’t get to control the end pricing. You have no control over what Amazon sets your products pricing at for customers, meaning you don’t control the product margin, you don’t control potential sales and discounts, and you don’t control if it’s overpriced. This could potentially impact your business if you also sell products separately from Amazon.
• You don’t want to become too reliant on Amazon. Amazon can choose to stop buying from you at any point, so it’s important to still diversify your sales channels and avoid relying on those bulk Amazon vendor purchases too much.
• You need to stay on top of logistics. Amazon has specific logistical requirements you need to stay on top of. Plus, you need to maintain stock levels so you can quickly fulfill any bulk orders Amazon makes, or they may reduce their purchases.

How to Become an Amazon Vendor

If being an Amazon vendor sounds like a direction you’d like to take with your business, let’s talk about how you can try to position yourself to earn an invitation. While there’s no guarantee that Amazon will extend an invite, there are still steps you can take to try to seem appealing as a vendor partner. And, by extension, these steps can help boost your own business as well.

Sell Third-Party Through Amazon

If selling through Amazon is your goal, start by joining Amazon Seller Central and becoming a third-party seller. While this is a much more manual strategy, if Amazon’s customers seem interested in your products and you grow a reliable customer base, Amazon may see that and ask you to join their vendor network.

Plus, you can always create a hybrid sales strategy, working as both a vendor and a seller through Amazon to generate even more revenue for your business.

Boost Your Sales and Brand Presence

Make sure to optimize your Amazon listings and use advertising tools to help boost awareness of your products on Amazon. The more popular your products become and the more sales you generate through its marketplace, the more likely Amazon’s team is to notice and extend an invitation for its vendor program.

Participate in Trade Shows and Events

Amazon recruiters are often looking for new vendor partners at industry events and trade shows, especially if they’ve got unique and innovative new products. If it makes sense for your business and becoming an Amazon vendor is a major priority, consider looking into some of these events and making sure you have a strong presence.

Be Patient

It may take time for your business to grow enough to catch Amazon’s eye. Spend that time investing in your business, growing your sales, and boosting your brand awareness so that you can increase your chances of getting an invite.

Amazon Vendor Central Basics

So you’ve gotten an invitation to Amazon Vendor Central and you’re getting ready to get started. Congratulations! Let’s walk you through a few basics to keep in mind so you know how this platform works.

Registration

You’ll receive your invitation via your company email. Once you read the terms and conditions and accept the invitation, you’ll be sent a registration key. This registration key will allow you to create your portal on the Amazon Vendor Central platform. 

Once you’ve created your account, you can log in to access the dashboard. 

Next, you’ll need to set up your profile so that Amazon can view and order products from you.

You need to configure your Electronic Data Interchange (EDI) to make it easy for your company and Amazon to create and send things like purchase orders, invoices, shipment documents, and more.

From there, you can provide product details so Amazon’s buyers can decide what to purchase. Upload information like product descriptions, high-quality images, and specifications. You can even include recommended pricing for them to use when selling to the end consumer.

Continually monitor your vendor account so you can keep an eye out for purchase orders. The quicker you’re able to fulfill orders, the more likely Amazon is to continue your vendor relationship.

Product Information

Your first priority should be creating your product catalog so that Amazon buyers can see all of your product options when they place an order. You can manually add or remove products, or use Amazon’s template to create a mass product import.

The product details you can add include:

• Product title and description
• Product images
• Features and benefits
• Specifications (i.e., sizing, weight)
• Relevant keywords
• Product category
• Related products
• Suggested pricing or Minimum Advertising Pricing (MAP) requests

Provide Amazon with as much information as possible so they can have success selling your products.

Marketing Tools

Amazon Vendor Central provides vendors with several marketing and advertising tools to further boost awareness about your products. Some of the tools available to vendors include:

• Amazon Advertising Console: This is a self-service advertising platform that lets vendors create sponsored ad campaigns to put their products in front of the right audience.
• A+ Content: Provide more detailed product information like videos, interactive hotspots, product comparison charts, and more that helps customers get more info about your products.

Source: Amazon

• Amazon Vine: A review platform that helps vendors get more quality product reviews to make their products seem more credible on the marketplace.
• Promotions: Create coupons or promotions in the Amazon Vendor Central dashboard to provide incentives for customers to purchase your products.
• Brand Stores: Build a dedicated Brand Store on Amazon that showcases all available products in an easy-to-navigate online storefront.

Source: Amazon

The more marketing tools you take advantage of, the better your products will be distributed on the marketplace, and the more sales Amazon will make. The more sales Amazon makes, the more likely they are to continue making wholesale purchases from you.

Get Started With Amazon Vendor Central

Start building up your online and Amazon presence so buyers become aware of your business and reach out with an Amazon Vendor Central invitation. Becoming an Amazon vendor can be a great way to generate even more sales for your brand, so make sure you know all you need to know about this avenue.