There are benefits and drawbacks of Amazon Vendor Central for sellers. This article compares the two options, as well as how each one can benefit a seller’s business. Read on to learn more!… But first, let’s talk about how Vendor Central differs from Seller Central.
Costs of selling on Amazon Vendor Central
While the advantages of selling on Amazon Vendor Central are many, there are also some costs to consider. These include the market development fund and COOP fees. These fees are used to cover operating costs and are often not clearly explained. Amazon also offers a variety of marketing services and features that may appeal to vendors.
Vendors can post images of their products on the marketplace and change their prices. The platform also helps them market their products through Amazon Vine, A+ content, and payment. In addition, there is also the Amazon Advertising Console (formerly Amazon Marketing Services) where vendors can manage their advertising campaigns. Finally, the service also offers reporting and access to Amazon‘s support team. This makes it possible to track sales, customer satisfaction, and more.
Amazon Vendor Central has fees that can be substantial. The fees are set in a contract and reviewed annually. It’s important to read the contract carefully so you can be aware of what you’re paying. There are also ways to negotiate these fees, though many businesses fail to do so.
Benefits of selling on Amazon Vendor Central over Seller Central
One of the advantages of selling on Amazon Vendor Central over its competitor, Seller Central, is the increased level of seller support. If you are having trouble achieving success with your listings, you can reach out to Amazon’s support team to get help. As an additional benefit, Vendor Central allows you to maintain more control over your products and their pricing. Moreover, you can connect directly with your customers, resulting in higher sales and brand awareness.
In addition to a higher sales volume, Amazon also offers a better buy box and search result rankings. While many businesses have experienced increased sales unit-levels after switching to Vendor Central, others have reported a decrease in sales. As a seller, you should take into account that customers look for the Amazon Prime badge and are less concerned about the seller’s reputation. Additionally, the third-party marketplace is well-understood by buyers and is protected by Amazon.