{"id":4251271,"date":"2020-04-01T15:16:00","date_gmt":"2020-04-01T13:16:00","guid":{"rendered":"https:\/\/www.deptagency.com\/insight\/launching-on-amazon-seller-vs-vendor\/"},"modified":"2020-04-01T15:16:00","modified_gmt":"2020-04-01T13:16:00","slug":"launching-on-amazon-seller-vs-vendor","status":"publish","type":"article","link":"https:\/\/www.deptagency.com\/en-uki\/insight\/launching-on-amazon-seller-vs-vendor\/","title":{"rendered":"Launching on Amazon: Seller vs. Vendor"},"content":{"rendered":"
\n\t\n\t<\/svg>\n\t\t\t\n\t\t\tBack to all articles\t\t<\/span>\n\t\n<\/button>\n\t\tLaunching on Amazon: Seller vs. Vendor\t<\/h1>\n\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t<\/picture>\n\t\n\t<\/div>
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\n\t\tMellissa Flowerdew-Clarke\t\t
\n\t\tVP of Marketing, EMEA\n\t\t\t<\/div>\n<\/div>\n\t
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\n\t\t\t\t\tDate\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t1 April 2020\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n<\/div>\n\n
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\n\t\tThe Covid-19 crisis is forcing manufacturers to explore new distribution channels. Marketplaces are a wide-reaching solution that offer an established infrastructure, eliminating the need to build a new online platform. One of the biggest online marketplaces in the world is Amazon, with over 404 million mobile and desktop visits to Amazon.co.uk in January 2020 alone. This established marketplace is a logical place for businesses to use as a jumping off point into this time of increased online purchasing.\t<\/h2><\/div><\/div>\n\n
\n\t\tHow can you sell on Amazon?\t<\/h2><\/div><\/div>\n\n
\n\t\tAmazon offers two forms of cooperation: Vendor Model and Seller Model. The fundamental difference between them is that vendors sell their products to Amazon, while sellers distribute their products themselves and use Amazon merely as a marketplace.\t<\/p><\/div><\/div>\n\n
\n\t\tSeller central: Amazon as a marketplace\t<\/h2><\/div><\/div>\n\n
\n\t\tIn Seller Central, Amazon acts as a marketplace. This means that manufacturers sell their products directly to the customer. They independently enter their products into the Amazon catalogue, define the sales prices and then ship their goods to their buyers.

Even if merchants choose the Fulfillment by Amazon (FBA) option and leave the shipping to Amazon, they are still the owner of the goods at all times. Sellers, therefore, have a high degree of control over their products and their inventory. They can decide for themselves whether they want to sell their items only via amazon.co.uk or on Amazon marketplaces throughout Europe.

In addition, sellers receive precise information about which shopper has ordered something from them and when and can remain in direct contact with their customers.

Sellers can also advertise their products on Amazon via Sponsored Ads.\u00a0 Sellers can easily create a customisable space to showcase their brand with the only prerequisite being that they must first register their brand with Amazon.\u00a0

To participate in the Seller Program, sellers need only to register via the platform without the hassle of negotiations with Amazon. However, Amazon does charge a commission for every product sold in the Seller model as well as a monthly basic fee for the use of Seller Central.\t<\/p><\/div><\/div>\n\n
\n\t\tSeller central including fulfilment by Amazon (FBA)\t<\/h2><\/div><\/div>\n\n
\n\t\tWith the Fulfillment by Amazon offer, sellers have the option of having Amazon handle their shipping. In this case, sellers can send a portion of their inventory to Amazon shipping centers. Amazon will then take care of the rest of the logistics for shipping and storage fees. The management of customer support and returns is also encompassed by the scope of service that sellers can benefit from with this option.\u00a0

Because Amazon is able to ensure the availability of goods through this method, FBA items qualify for the Prime program and free shipping. As a result, the seller benefits from Amazon\u2019s promotional shipping label and logistical infrastructure without relinquishing seller status.\t<\/p><\/div><\/div>\n\n
\n\t\tVendor central: Amazon as a retailer\t<\/h2><\/div><\/div>\n\n
\n\t\tUnlike with the Seller Program, within Vendor Central, Amazon operates as the sole merchant. The manufacturer acts as a supplier and then Amazon takes care of the sales to shoppers, distribution and shipping.

Since Amazon is the owner of the products in this case, it also determines the sales prices. Amazon is, therefore, also responsible for the processing of returns and customer service. Also unlike sellers, vendors have no direct contact with their customers and never have access to see which customer buys what item. Vendor products are marked with the label indicating that they are \u201cDispatched from and sold by Amazon.\u201d Vendors participating in the Prime program and are automatically given access to the free delivery option.
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\n\t\tPerks for major brand manufacturers\t<\/h2><\/div><\/div>\n\n
\n\t\tVendor Central is primarily suitable for larger brand manufacturers.\u00a0Vendors must enter into negotiations with Amazon before they can participate in the program, unlike sellers.

Product selection, purchase prices and the conditions of cooperation are determined on a case-by-case basis. Brands that are well-prepared and have a solid basis for negotiations can achieve better conditions as Vendors rather than Sellers. However, it is more timely to set up.\t<\/p><\/div><\/div>\n\n
\n\t\tJumpstart your Amazon business\t<\/h2><\/div><\/div>\n\n
\n\t\tIf you want to start with Amazon as quickly as possible, you should start as a seller. Here, the negotiations with Amazon are omitted and you can put products online faster. But, in this case, an internal team must be set up or an external agency must be organised to manage the Seller account. If, as a manufacturer, you do not yet supply directly to consumers, the necessary infrastructures and processes must also be installed. In the long-term, you can still switch to the vendor model or drive a hybrid model combining vendor and seller central, if required.\t<\/p><\/div><\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\n\t