Wed. Jul 24th, 2024

Amazon presents a huge opportunity for sellers to reach a wide consumer base on their marketplace platform. Anyone is allowed to sell through Amazon Seller Central, being responsible for the entire process from uploading to fulfilment, benefiting from trust consumers have for the platform. 

When a brand becomes more established however, they may be on their way to receiving an Amazon Vendor Central invite.

Amazon Vendor Central is a way to sell your products through Amazon in bulk, with them picking up the majority of the sales process, meaning no more dealing with customers.

How does Amazon Vendor Central work?

Unlike Amazon Seller Central which is open to everyone, Amazon Vendor central is invite only, meaning Amazon invites only those brands that they want to partner with. 

The way Amazon Vendor Central works is that Amazon will purchase your product “wholesale” from you and take control of most of the sales process. The only parts of the process you will still be responsible for are:

  • The Wholesale Price
  • Product Descriptions
  • PPC & other Advertising Activity

As a vendor you do not set the sale price of the product. Amazon will honour a Minimum Advertised Price (MAP) but will set pricing to ensure a higher volume of sales and as a result, profit. 

How do I get invited to Amazon Vendor Central?

Unfortunately there is no guaranteed way to be invited, however there are a few things you can be checking off to increase your chances of being noticed.

First, if budget allows, you can start by exhibiting at Trade Fairs, these events can give you the opportunity to be noticed by Amazon scouts.

Next you need to have a brand that demonstrates evidence of strong demand, the best way of achieving this is to have a quality product and good customer service.

Lastly, you will need to show that you are a brand focused business through Amazon Marketplace as a seller with your own branded products.

When do Amazon Vendors get paid?

When you are invited, Amazon lays out their terms, including the wholesale price they’re looking to pay and the payment terms. Vendors are paid under one of three different sets of terms.

  • 30 Days (with a 2% discount in Amazon’s favour)
  • 60 Days
  • 90 Days

Typically with the longer of the two payment terms a vendor can experience cash flow problems, waiting two to three months for their money to come in. In these cases where managing this is an issue seeking the assistance of an agency can help you streamline your operation to avoid these payment terms becoming too problematic.

What does a Vendor Central Agency do?

Hiring an agency that specialises in Amazon Vendor Central can help with many of the aspects involved in a relationship between vendor and Amazon.

A full service UK Vendor Central Agency such as Arthia, for example, offer a unique mix of consultancy and management services across different areas, which include:

  • Logistics, including fulfilment
  • Reporting & Forecasting
  • Customer Service
  • Marketing & Advertising, including Amazon PPC, SEO and Content Writing
  • Inventory Management
  • Compliance
  • Market Research

Can I refuse to join Amazon Vendor Central?

If you have decided that you would rather run things yourself, but have received an invite, you can refuse to join Amazon Vendor Central, and continue to use Amazon Seller Central if you prefer.

It is unlikely to affect your relationship with Amazon, however they expect to be treated like any other potential retailer with access to wholesale prices, so if you meet any of the following criteria:

  1. You are a manufacturer
  2. You sell to other retailers or distributors

And reject their invite, they can potentially suspend your Seller Central account.

Still have questions? Get in touch with Arthia, a full-service, Vendor Central agency and speak to their team of trained Amazon consultants.

By admin