Everybody talks about selling on the Amazon Marketplace, the Seller Central or the Vendor Central. But nobody ever specifies what these terms actually mean and how they work. How should you as a seller then know what's the right place for you?
That’s where we want to help. Let us take you on a journey to explore the Amazon Marketplace and the mysterious terms surrounding it.
Vendor vs. Seller
First of all, it is important to understand the distinction between an Amazon Vendor and a Seller. Broadly speaking, a Vendor is usually a manufacturer or so-called first-party seller. They sell their items directly TO Amazon, which then sells them further to the final consumer. A Seller, on the other hand, is a so-called third-party seller. That means they sell items THROUGH Amazon, either self-fulfilled or via Fulfilment by Amazon.
A key distinction here is that basically anyone can become an Amazon Seller, while Vendors have to be invited by Amazon to participate. Naturally, vendors are often large, successful sellers. The platform that Vendors use to sell their products to Amazon is called Vendor Central.
If you are only starting out on Amazon, you will probably not get the option to become a Vendor soon, as Amazon is very picky in terms of whom they approach. It therefore makes sense to dive deeper into the other options in the following paragraphs.
Amazon Marketplace and Seller Central
As opposed to Vendors who use Vendor Central to sell to Amazon, third-party sellers use Seller Central or the Amazon Marketplace to sell to end-consumers via Amazon.
There is no clear distinction between ‘Amazon Marketplace’ and ‘Amazon Seller Central’. Generally speaking, they both describe the platform and service through which Sellers can put their products on Amazon and sell them to customers.
Amazon Marketplace enables anybody to sell items on Amazon’s website. More specifically, it is the “service through which Amazon disburses the net proceeds” of the sellers’ sales on Amazon to their checking account. A Seller signs up for Amazon Marketplace as soon as they list their first item.
Seller Central, on the other hand, is the web interface used to manage the selling process and inventory etc. on Amazon. So, once you are a Seller on Amazon, you can manage all your selling activities from here.
Leverage the Full Potential of the Amazon Marketplace
While it is often a very competitive environment, selling your items on Amazon can be the key to success for your business. Of course, that depends highly on the nature of your business and the products you would like to sell as well as many other factors. You should therefore do some research before you start selling. Find out whether your products are already sold on Amazon, at which prices and by how many competitors. It is also wise to examine the potential demand first. And don't forget the costs that come with selling on Amazon, both if you sell only a little or a lot.
It is then only a matter of time that the orders come flying in like crazy - and might overwhelm you. You can be prepared for that by using a flexible cloud ERP system that integrates seemlessly with Amazon. It will support you in managing your orders and all other parts of your business. Leaving you more time to grow your business sustainably!
So, what are you waiting for? Rock the Amazon Marketplace and get your free trial of Khaos Control Cloud!
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