Amazon Seller or Amazon Vendor Account?
Amazon is the largest online marketplace in the world and offers a great opportunity for businesses to reach a wider audience and sell their products globally.
When it comes to selling on Amazon, businesses have two options: an Amazon Seller account or an Amazon Vendor account. Both options have their pros and cons, so it’s essential to know the differences before deciding which one to choose.
Amazon Seller Account
An Amazon Seller account is the most common way to sell products on Amazon for small and medium-sized businesses. With this account, businesses can list their products on Amazon, manage their inventory, and ship orders to customers themselves. Amazon charges a commission on products sold and other costs, such as a fee for shipping products to customers and warehousing products.
Benefits of an Amazon Seller Account
One of the most important benefits of a Seller account is that it gives businesses complete control over their product descriptions and pricing. Sellers can customize both descriptions and images, set their prices, and decide when to activate promotions or discounts. This level of control is essential for businesses looking to build their brand and establish a unique selling proposition.
Another benefit of a Seller account is that it gives businesses access to Amazon’s vast customer base. By selling on Amazon, businesses can reach millions of potential customers who already shop on the platform. This increased exposure can help businesses increase sales and develop a brand.
Amazon Vendor Account
On the other hand, the Amazon Vendor account is intended for larger companies and manufacturers, but access to the Vendor account is only possible by invitation. With this account, Amazon acts as a seller, and businesses wholesale their products to Amazon. Amazon then sells the products directly to customers on Amazon’s marketplace. In this case, it is a classic B2B business relationship.
Benefits of an Amazon Vendor Account
One of the most important benefits of an Amazon Vendor account is that it allows businesses to sell their products in bulk directly to Amazon. In this way, companies avoid having to manage their own inventory, prepare shipments for customers, or deal with customer support. Amazon takes care of all of this itself, including shipping, order processing, and customer service.
Another advantage of an Amazon Vendor account is that it gives companies more control over their product listings. They can create advanced listings with images, videos, and other multimedia content that can help their products stand out on the Amazon marketplace.
Just like with a Seller account, businesses can use Amazon’s advertising services to promote their products and drive more traffic to their product pages.
Amazon Seller Account vs. Amazon Vendor Account
The main difference between an Amazon Seller account and an Amazon Vendor account is the level of control that companies have over their products. With a Seller account, companies have full control over their product listings, pricing and delivery. In contrast, with a Vendor account, Amazon takes care of everything, including shipping and customer support.
Another important difference between the two accounts is the cost structure. With an Amazon Seller account, companies pay a commission and some costs that are mostly tied to selling through Amazon. The seller is the owner of the goods until they are sold or delivered to the buyer. In contrast, with an Amazon Vendor account, businesses sell their products to Amazon, and Amazon pays them a fixed, wholesale price for the quantity that is ordered and delivered to Amazon.
Which is the Better Choice for Online Sellers?
Deciding which account is best for a business depends on several factors, including the size of the business, the nature of the products, and the overall goals of the business.
For small and medium-sized businesses with limited product offerings, Seller is often a better choice. This account gives businesses more control over their listings and pricing, allowing them to build their brand and create a unique selling proposition. In addition, the Seller account is more cost-effective, as companies only pay commissions for selling through the platform.
For larger companies with a wide range of products and established brand recognition, a Vendor account may be a better choice. This account allows businesses to sell their products to Amazon, which can reduce the amount of work involved in inventory management and delivery. In addition, advanced listings and some additional advertising services available through an Amazon Vendor account can help businesses increase sales and brand awareness in the marketplace.
It should be noted that some businesses may choose to use a combination of Amazon Seller and Amazon Vendor accounts depending on their needs. For example, a company may use a Seller account to sell certain products while using a Vendor account to sell others. This approach can give companies the best of both worlds, allowing them to maintain control over some products while reducing the workload on others.
The choice between Seller and Vendor account thus depends on the needs and goals of the company. Small and medium-sized businesses with a limited range of products may find an Amazon Seller account to be a better choice, while larger businesses with a wide range of products may benefit more from an Amazon Vendor account. Regardless of the choice, however, selling on Amazon can provide businesses with access to a vast customer base and significant opportunities for growth and success.
At Amazoniac Agency, we work with both – sellers who have their own Amazon Seller accounts and sellers with Amazon Vendor accounts. Send us a message for more information.
