Vendor or Seller Central? A crucial choice for your business development
After a first analysis of your product range, your organization and competitors, our agency specialized in business strategy on Amazon will identify business opportunities in order to define a customized strategic plan for your business that will allow you to accomplish your sales and growth goals. The first step in this action plan involves the type of account you need to create to start your business on the Marketplace.
Amazon’s Vendor Central
AKA Vendor, Retail or 1P (first-party) on Amazon.
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 Modernization of the Economy (LME Law n° 2008-776 of 4 August 2008). By default, the payment period is 30 days after the reception of goods and cannot exceed 60 days net calendar.
Becoming a wholesaler on Amazon will give you a greater opportunity for healthy growth in 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 Vendor Central is that your products are included in the Amazon Prime program, a customer loyalty program that encourages sales.
However, you don’t have any control over your pricing. The platform takes care of your pricing and dynamically adjusts it based on the competition. Dynamic pricing is a key element of Amazon’s business strategy initiated by Jeff Bezos.
In order to have a Vendor Central account, your brand must be listed by Amazon and entered into a distribution agreement with specific clauses, such as damage allowance.
Registration for Amazon’s Vendor Central is only possible by invitation. The platform is not open to anyone. Our consulting agency will help you gain access to Vendor Central and grow your brand.
Amazon’s Seller Central
AKA Amazon’s Marketplace or 3P (third party), Seller Central is open to anyone who wishes to sell products online. They are called third-party sellers. The subscription fee is €39 excluding tax/month plus sales and management fees. The marketplace serves as a sales channel and you sell directly to the customer. You maintain full control over your pricing strategy.
There are two distribution methods:
Amazon’s FBA service (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 the logistics distribution centers of Amazon. By choosing Amazon’s FBA, your products will be eligible for Amazon Prime.
The platform takes care of:
- Storing your products in their warehouses
- Preparing the packages
- Shipping your products to the end customer
Amazon’s FBM service (Fulfillment by Merchant)
You take charge of all the logistics, from the preparation of the packages to the shipment to the customer. You have to find a carrier to deliver your products and your products are not eligible for Amazon Prime, which offers free one-business-day delivery for users who subscribe to the program.
When launching as a third-party seller on the platform, it is important to choose your distribution method carefully as it will guarantee your success. Our agency will advise you on the implementation of your distribution strategy.
The hybrid approach
You 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 Amazon’s market, our agency can help you 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 account on Amazon
We help you choose your distribution model, with a complete distribution offer:
Creation and launch
We advise you on the distribution method to choose and help you understand your contract with Amazon.
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.
Already present on Amazon UK, you can decide to deploy your offers internationally in just a few clicks. There are several possible strategies:
Selling on Seller Central
– Country by country distribution: You decide in which country(ies) to sell, and adapt your content and promotions to the chosen country. You can choose this strategy either with the classic model, Amazon’s FBM or with the Amazon’s FBA service.
– 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’s warehouse delivery and Prime sales) or in FBM (direct-to-customer delivery) – applying specific shipping costs on each country. This service allows you to reach millions of customers, thereby multiplying your sales in a profitable way.
Vendor Central account to sell across Europe
– Global Listing to sell on Amazon Europe: You sell in all European countries with a single Vendor account: all deliveries are made in the Vendor account’s country of origin while Amazon implements its 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 aligned purchasing conditions across Europe. Two configurations are possible:
- You deliver to only one country and Amazon takes care of the transfer of your products to all its European warehouses.
- You deliver to several distribution centers based in the different European countries that are included in your sales strategy.
Here again, the model you choose is crucial for the future of your business and this is where the expertise of our agency comes in handy. We will help you make the right choices from the start, which will impact your success and profitability on the marketplace.
Depending on your products category, there are Stores and Programs adapted to certain niche markets or product types, such as Made in France products or innovative products.
Selling on these specialized Stores helps to improve your offering visibility in Amazon’s search 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 come with an expiration date, can be sold on Amazon Prime Now.
Look at Monoprix. It was able to take advantage of this program very early on and improved sales in its food sections. Our sales and distribution strategy consultants will help you to set up your online offer and improve your brand’s visibility on Amazon’s search results.
This option is available both on Amazon’s Seller Central and on Amazon’s Vendor Central accounts.
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 account on Amazon Business to make purchases for their company.
Both Seller and Vendor Central accounts can activate the option.
Selling with Amazon Prime without choosing the FBA distribution model
Reseller on Amazon Prime is a little-known, yet highly effective way to improve your sales and revenue since 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 your account’s management on Amazon to our agency, we will support you implementing this solution that will boost your sales performance.
French SMEs and VSEs, sell your Made in France products on the Amazon’s French Companies Store
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 on the Store, the products 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 Stores, you gain access to a number of tools that enhance the way you promote your products.
Sponsored Ads with Amazon 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’s search pages.
Opinion of our expert in strategy for Amazon
AUDIT – STRATEGY
Your eTAIL agency benefits
- A custom, strategic and operational plan definition
- Understanding of your contract
- Opening one or more accounts
- Management of your relationship with Amazon
- Administration follow-up
- Stock monitoring
- Pricing strategy validation
- Orders, disputes/penalties and payments follow-up
Why should you sell on Amazon? Some figures
(source: E-Kommerce Kantar study, 2020)