Vendor or Seller Central? A crucial choice for the growth of your businessAfter a first analysis of your product line, organization, and competitive environment, our agency specialized in Amazon’s business strategy will identify business opportunities in order to define a strategic plan tailored to your needs that will allow you to reach your sales and growth objectives. The first step of this action plan involves the type of account you need to create to start your business on the Marketplace.
Amazon Vendor Central
Also called Amazon Vendor or Amazon Retail or 1P (first-party).
How does it work? You sell products to Amazon using a “wholesale” distribution model. Amazon buys the products from you, stores them, and pays for the purchases according to a payment term that complies with the French Law on the Modernisation of the Economy (LME Law n° 2008-776 of 4 August 2008). By default, the payment period is 30 days after receipt of goods and cannot exceed 60 days net calendar.
Becoming a wholesaler for Amazon ensures healthy growth on the marketplace. Your products are sold and shipped by Amazon, they get good visibility in the results pages even without advertising and the platform takes care of finding new customers for your business.
Another advantage of the Vendor Central model is that your products are included in the Amazon Prime program, a customer loyalty program that encourages sales.
However, you do not control your prices, the platform does the pricing and it will be dynamically adjusted according to the competition. Dynamic pricing is a key element of Amazon’s commercial strategy initiated by Jeff Bezos.
To have a Vendor Central account, your brand must be listed by Amazon and enter into a distribution agreement with specific clauses including, for example, damage allowance.
Registration for Amazon Vendor Central is in principle by invitation. Access is therefore not open to everyone. To gain access to this distribution method, which will help your brand to grow, our consulting agency will assist you in this process.
Amazon Seller CentralAlso known as Amazon Marketplace or 3P (third party), Seller Central is open to anyone who wants to sell products online. We call them third-party sellers. The subscription price is €39 excl. tax/month plus sales and management fees. The marketplace serves as a sales channel and you sell directly to the customer. You, therefore, retain control of your pricing strategy. There are two distribution methods: Amazon FBA (Fulfillment by Amazon) You can decide to use the logistical power of Amazon by activating the FBA option (Fulfillment by Amazon). Your products are shipped to Amazon’s logistics distribution centers. By choosing this distribution method, your products will be eligible for Amazon Prime. The platform takes care of :
- Storing your products in their warehouses
- Preparing the packages
- Shipping the goods to the end customer
The hybrid approachYou can opt for the hybrid approach by using Seller Central to sell your products directly to customers and Vendor Central for wholesale. This increases your sales potential, spreads the risks, and gives you access to Amazon’s tools as a seller and supplier. The main challenge is to successfully implement this hybrid model. Thanks to our experience and knowledge of the Amazon market, our agency can help you to effectively manage this strategic approach.
Amazon Prime Now
Livraison le jour même dans les grandes villes, disponible pour les produits frais-alimentaires (option existante pour Seller ou Vendor).
Amazon Business Prime
Offre à destination du professionnel qui achète sur Amazon avec le compte de son entreprise. Les produits sont proposés en Prime au client (option existante pour Seller Central ou Vendor Central).
Amazon Prime Reseller
Nouvelle solution d’Amazon qui permet de vendre en Prime sans avoir le stock en FBA chez Amazon. Cela se fait uniquement sur invitation d’Amazon. Les conditions d’éligibilités sont très strictes.
La boutique du producteur
Elle valorise le savoir-faire et l’excellence des producteurs français, à travers la maîtrise de leur catalogue, stock et politique de prix. Pour être présentes sur la Boutique, ces références doivent respecter 2 critères : le Made in France et la production en circuit-court.
eTAIL agency helps you create your Amazon accountWe help you choose your distribution method, with a complete distribution offer:
Creation and launch
We advise you on the distribution method to choose and help you understand your Amazon contract.
We help you optimize your distribution strategy and manage your inventory.
We monitor your account on a daily basis: orders, payments, disputes/penalties.
Everything you need to know about AmazonWe clarify all the key points about selling on Amazon.
Selling on Seller Central– Country by country distribution: decide in which country(ies) to sell, adapt your content and promotions to the chosen country. This strategy is valid for the classic model, Amazon FBM, but also for Amazon FBA.
– Amazon PAN-EU or pan-European FBA shipping with a Seller Central account: you will ship your products to Amazon’s European warehouses to sell your products in the different countries in FBA (Amazon warehouse delivery and Prime sales) or in FBM (direct delivery to the individual), applying specific shipping costs on each country. This service allows you to reach millions of customers, multiplying your sales in a profitable way.
Vendor Central account to sell across Europe
– Global Listing mode to sell on Amazon Europe: you sell in all European countries with a single Vendor account: all deliveries are made to the country holding the source Vendor account and Amazon practices its own distribution strategy in the other activated countries.
– Amazon PAN-EU with a Vendor Central account: you have a European Vendor PAN account, i.e. Amazon buys and sells your products in each country with purchasing conditions aligned throughout Europe. Two configurations are possible:
- You deliver to only one country and Amazon takes care of the transfer of your products to all European warehouses.
- You deliver to several distribution centers based in the different European countries that are part of your sales strategy.
Depending on the category of products you sell, there are shops and programs adapted to certain niche markets or product types, such as Made in France products or innovative products.
Selling on these specialized shops helps to improve the visibility of your offer in Amazon results.
Selling with Amazon Prime Now
Prime Now offers same-day delivery in major French cities such as Paris, Lyon, and Marseille. Food products that are subject to go out of date can be sold on Amazon Prime Now.
Monoprix is an example in this regard. It was able to take advantage of this program very early on to improve sales in its food sections. Our sales and distribution strategy consultants will help you to put your offer online and improve your brand’s presence on Amazon’s search engine results.
This option is available on Amazon Seller Central and Amazon Vendor Central.
BtoB merchants, sell on Amazon Business
A sales accelerator for B2B merchants, Amazon Business also presents growth opportunities for B2C merchants who want to develop a sales strategy for business customers.
Products are sold on Prime to businesses of all sizes who have created an Amazon Business account to make purchases for their company.
Seller Central and Vendor Central accounts can activate the option.
Selling with Amazon Prime without choosing the FBA distribution model
Amazon Prime Reseller is a little-known, yet highly effective way to improve your sales and revenue because it allows you to sell your Prime products without having your inventory managed by Amazon through its FBA offering.
The eligibility requirements are very strict and registration is by invitation only.
By outsourcing the management of your Amazon account to our agency, we can support you with this solution that will boost your sales performance.
French SMEs and VSEs, sell your Made in France products on the Amazon French business shop.
It promotes the know-how and excellence of French producers, through the control of their catalog, their stock, and their pricing policy. To be present in the shop, these references must respect 2 criteria: Made in France and short production cycle.
Jeff Bezos has always put the customer at the center of Amazon’s strategy, so service quality requirements are high and third-party sellers must meet performance targets imposed by the marketplace.
Our agency offers you support in managing your account to help you achieve and maintain the performance targets set by Amazon. Being accompanied by an account manager means that you are protected from having your seller account blocked while benefiting from ongoing advice that will enable you to improve your performance.
The status of your account as well as your sales results will influence your SEO performance. SEO stands for search engine optimization and is a set of techniques that aim to improve the ranking of your products in the marketplace results without the use of advertising.
Once you have created your Seller Central or Vendor Central account or are listed as a merchant in one of the themed shops, you gain access to a number of tools that enhance the way you promote your products.
Amazon Ads Sponsored Ads
Sponsored products, sponsored brands, or Display advertising campaigns, a variety of formats are available to help you integrate paid search into your product ranking strategy on Amazon search pages.
The opinion of our Amazon strategy expert
AUDIT – STRATEGY
Your eTAIL agency advantages
- Definition of a tailor-made strategic and
- operational plan
- Understanding of your contract
- Opening of account(s)
- Management of your relationship with Amazon
- Follow-up of administrative procedures
- Monitoring of stocks
- Validation of pricing strategy
- Follow-up on orders, disputes/penalties, and payments.
Why sell on Amazon? A few figures
(source : Amazon US)
(source : Mediametrie)
(source: E-Kommerce Kantar study, 2020)