Vendor or Seller? Differences between the two main sales channels on Amazon

Amazon is an increasingly popular online selling platform among consumers and sellers. Although there are several options available for sellers, among the most common are Amazon Vendor and Seller. In this article, we will explore the differences between these two options and the implications

Amazon Vendor

Amazon Vendor is a program that allows sellers to sell their products directly to Amazon, which then becomes the official distributor. Amazon purchases items directly from the seller and takes care of their storage and shipping. The seller is paid for the products sold to Amazon, which then sells them to consumers.

Being a Vendor seller on Amazon offers some advantages, such as the opportunity to sell products to a wide customer base, the potential to obtain better prices for products due to higher sales volume, and Amazon’s support in managing logistics and orders. However, the Vendor program is reserved only for sellers invited by Amazon.

Amazon Seller

Amazon Seller, on the other hand, is a program open to all sellers. In this program, the seller lists their products on the Amazon platform and manages the entire sales process, from creating the listing to handling orders and shipping the product to the customer. Amazon charges a commission for selling products on its site.

Being a Seller seller on Amazon also has some advantages. Sellers can access a wide customer base, can sell virtually anything (subject to Amazon’s selling policies), can set their own prices, and can independently manage their business.

Main differences between Vendor and Seller

The main difference between Amazon Vendor and Amazon Seller is how the sale of products is handled.

With Amazon Vendor, Amazon directly purchases products from the seller, warehouses them, and sells them directly to consumers.

On the other hand, with Amazon Seller, the seller lists their product on the Amazon platform and sells it directly to consumers, with Amazon handling payment processing and customer protection.

Another significant difference is that the Vendor program is reserved only for sellers invited by Amazon, whereas the Seller program is open to all sellers.

Additionally, Vendor sellers do not have control over the selling price of their products, whereas Seller sellers can set the selling price as they wish.

Implications of the choice

Choosing between Amazon Vendor and Amazon Seller depends on the needs and expectations of the seller.

If the seller wants to sell their products directly to Amazon and benefit from Amazon’s assistance in managing logistics and orders, the Vendor program may be the right choice. However, the program is reserved only for sellers invited by Amazon.

On the other hand, if the seller wants to have full control over their business and selling prices, the solution is Amazon Seller.

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