Compare: Amazon Vendor vs. Seller

Amazon tops the global online market today. That’s why many entrepreneurs prefer to join Amazon and promote their brands inside this online platform. Yet, how do these business owners start selling inside Amazon?

Follow along to know the distinct qualities of an Amazon Vendor vs Seller. Then, check out the difference between the two and see how to become one, and which of the two you should pursue.

What is the Main Difference Between Amazon Vendor vs Seller?

Amazon vendors sell their products directly to Amazon, while sellers sell directly to buyers. Vendors have an invitation from Amazon from where they give the ownership, facilities, and order process to Amazon. Conversely, Amazon sellers handle everything in selling their goods to their customers.

In short, Amazon vendors sell their goods to Amazon, while sellers market their goods on Amazon. 

Besides these main differences, you might also be interested to see which of two brings better deals to entrepreneurs. Here are the other 6 things you need to consider to know if it would be best to become a vendor or a seller.

Fees. Vendors pay a monthly subscription fee for all its total sales. However, sellers choose between individual plans (selling 40 units per month) or professional plans (selling more than 40 units per month). In addition, sellers can do referral fees, fulfillment fees, long-term storage fees, and other additional fees for advertising and premium account deals.

MSRP. Because Amazon handles the selling for vendors, they are also the ones to control the selling price. On the other hand, sellers set their own pricing on the Amazon website.

Logistics. Amazon vendors let Amazon work on its packing, transportation, and shipping. Amazon also handles storage control and inventory management when dealing with vendors.

Amazon sellers are not fully affiliated with Amazon, so they are personally required to control the processes for the ordering up to shipment. Yet Amazon is still open for sellers to assist with the logistics as long as the seller gives in paying extra.

Customer Service. Vendors don’t need to hire individuals to do customer service and interaction. Why? It is because Amazon works on it for them. Amazon is the one to reach out to its customers and handles all the queries and returns.

As for sellers, they should deal with these questions and concerns, including returns and other customer engagements.

Amazon vendors rely on Amazon’s in-house marketing services. While sellers can do it individually, they can also add extra visibility for their accounts through the Enhanced Brand Content program.

Analytics. Vendors cannot fully access Amazon’s sales analytics. Because Amazon handles everything, vendors are not fully equipped to check their status. On the other hand, Amazon sellers can review their analytics all the time.

What are the benefits of being an Amazon Vendor?

Vendors are only required to pay monthly. Afterward, they don’t need to worry about the whole selling process. They can just sit back, relax, and enjoy while allowing Amazon to sell their goods. Besides, Amazon vendors have less time and effort to work while enjoying its affordable monthly deals. Most importantly, Amazon vendors receive more accurate logistics and inventory.

What are the benefits of being an Amazon Seller?

Unlike Amazon vendors, Amazon sellers have the freedom to access the Amazon seller interface. They also can work on their branding, marketing, and financing, without much dependency on Amazon. In this case, entrepreneurs can still use the Amazon platform without giving them full authority over their products.

Should you become an Amazon vendor or an Amazon Seller?

Review all the information above and weigh things out. Get familiar with how Amazon works for both types of sellers. Whether you choose between the two, you should indeed have a next-level business inside the Amazon platform.