Amazon Vendor: Seller Central In-House vs. Seller Central 3P Partner

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Many businesses worry over how rumored potential Amazon Vendor Central changes could affect them. There’s speculation in the industry that Amazon may phase out Vendor Central, or at least limit its interaction with current vendors.

What will you learn from reading this?

  • For some executives, you may have already experienced some changes with your Amazon selling experience. For others, this blog will serve as a way to prepare backup options in case you find yourself needing to make a change.
  • Our focus is not on why or if these changes are happening, but on informing and equipping you with alternative options for selling on Amazon.

Below we outline the pros and cons of two alternative methods. Let's walk through these two main options so you can proactively prepare for anything that may occur in the marketplace.

Option #1: Seller Central In-House

Selling directly to consumers via Amazon Seller Central

What do you do if your Vendor Central account is shut down and/or phased out? Where do you go from there? The natural first instinct is to run your own Seller Central account. This is an enormous commitment of skills and resources.

Option #2: Seller Central via 3P Partner

Selling products to a third-party Amazon Wholesale service provider

A third-party Amazon seller arrangement provides a simplified approach to selling to consumers. In exchange for product exclusivity on Amazon, 3rd party sellers buy your product as a wholesale customer.

Once your third-party seller purchases these products, they would optimize, advertise, and sell your products. This resolves many headaches for sellers.

 

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Seller Central In-House

One of the many benefits of Amazon’s platform is that anyone can run a Seller Central account. But one of the challenges is that very few can run a Seller Central account with success. Most brands may not understand the intricacies of Amazon Seller Central.

Pros

Maintain Full Control

  • You’ll have control of your own advertising, inventory, pricing, and logistics by running your Seller Central account.

Price Freedom

  • With Amazon out of the picture, you'll have the freedom to price your products based on what’s best for your business.
    • Amazon is notorious for lowering it’s vendor product pricing to win the Buy Box. Being the exclusive seller for your products will harmonize your online margins with your brick-and-motor partners.

Own your Brand Image

  • You own the exclusive power of changing/improving your brand presence.
  • Take advantage of Enhanced Brand Content and Store Pages to build your brand with the usage of images and product descriptions.

Cons:

Uncharted Waters

  • Amazon is brand new territory for many business owners.
  • In Vendor Central, once companies hand over their inventory over to Amazon, their work is done. Amazon takes care of fulfillment, pricing, and logistics.
  • Seller Central forces Amazon sellers to navigate uncharted waters that were previously handled by Amazon’s internal team.

Increased Overhead

  • With more capabilities comes more responsibilities. You'll need to find team members who will be responsible for Marketing, Operations, Logistics, Accounting, etc.

 

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Seller Central via 3P Partner

You can also sell your products to a third-party wholesaler or Amazon partner. There are a handful of companies who offer this service, providing a strong alternative to running your own Seller Central account. These companies pay you for your products and then take care of the Amazon selling process for you. In short, you profit and grow your brand while they do all the heavy lifting.

Pros:

Experience

  • If there’s one thing that money can’t buy, it’s experience.
  • Third-party Amazon Sellers and Amazon consultants have all the online marketplace experience you need, creating a natural fit for both parties.

Weight off Your Shoulders

  • This model allows you to rest easy knowing that you have less tasks on your to-do list.
  • That’s a huge perk of outsourcing this aspect of your business. Your marketplace vision, goals, and strategy are in good hands.

Contacts with an Amazon Rep

  • If you’ve ever spent time trying to reach a customer service department, then you know that it’s not an ideal way to spend your time.
  • With a third-party Amazon seller that's not an issue. Third-party Amazon sellers, like Retail Bloom, boast strong relationships with Amazon representatives, which helps to quicken the customer service process.

Industry Leading Software

  • Amazon wholesaling partners use many technologies to ensure success. Software for warehousing, fulfillment, advertising, logistics, and keyword research, are some examples. Most of these softwares range from $1,500 to over $2,500 per month for agencies.

Cons:

New Can Be Scary

  • It's difficult to change pace once you become comfortable with a certain aspect of your process.
  • With all new changes, it takes time to adjust. Companies may take a hit on this change period to see sustained long-term growth.

Presence of a Middle Man

  • The nature of this partnership requires permitting the third-party seller to serve as a middleman. Rather than going straight to Amazon to execute your projects, you now work with a third-party to achieve your online sales goals.
  • In most cases, the increased business long-term far outweighs the cost of service.

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How can Retail Bloom help?

Amazon third-party sellers work tirelessly to optimize brand pages and provide guidance whenever necessary. That's how we've built our business.

Retail Bloom offers a wide variety of Amazon services for companies in your exact position. Whether you decide to launch your own Seller Central account or are looking for an experienced 3P seller, Retail Bloom can help. By scheduling a consultation with Retail Bloom, you’re taking the right step towards increasing sales, streamlining processes, and eliminating headaches.

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Connect with us online and let us take care of the rest.

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