Businesses can do business with Amazon in two ways as a “Vendor” seller or a standard seller. Standard sellers sell in retail and meet the end consumer and their goods, while vendor sellers are manufacturers or distributors who sell their goods wholesale to Amazon.
Vendor sellers’ relationship with Amazon can be compared to their relationship with customers who have physical stores. Amazon buys goods from the vendor in large quantities at wholesale prices and sells them to the end consumer. These sold goods are stored in Amazon’s warehouses unless the vendor seller does not want to undertake the shipping. In this deal, Amazon is the customer of the Vendor seller. After the goods reach Amazon, their ownership becomes Amazon and Amazon becomes the retailer of these goods.
How Do I Become a Vendor Seller?
To become a vendor seller, you must receive an invitation from Amazon’s sales team. If these Amazon officers are interested in your brand, they will contact you. If you haven’t received an invitation and want to take a step to become a vendor: You can try to reach Amazon with the link “Contact Us” via “Vendor Central”. While the success rate is debatable, some brands are also known to try to reach out to Amazon vendor managers directly via LinkedIn. You might think Amazon will reach out to you if your brand can make enough noise in the industry.
It is clear that in order to become a Vendor seller, you have to get the attention of Amazon. This interest can be provided by your rapidly growing brand that you sell with Private Label and Top-Sellers in certain categories. Having a brand that has a significant market share in a certain area or leads the industry can bring you the privilege of being a vendor. These are highly dependent on product categories and Amazon’s then strategies.
Amazon mainly works with brand owners and manufacturers, but if you are a brand owner who is a distributor of a product that is difficult to supply and you can meet Amazon’s expectations, they may want to work with you too!
What is Vendor Central?
Vendor central is the panel where vendor sellers control their sales, cargo, invoices, goods and marketing activities. When you become a Vendor seller, Amazon sends you an invitation and you can activate your account in vendor central.
If you receive an invitation, you must submit your bank account details and accept Amazon’s commercial terms in order for your account to be fully active. The terms of the initial offer from Amazon to you are open to discussion and negotiation. Be sure to read the offer thoroughly before reaching an agreement. Amazon will ask you for certain enhancements annually, so you should be prepared to meet expectations.
Once you have full access to Vendor Centrala, you can start preparing your products. Unlike Seller Central, your products will not be activated immediately. Whether products fit Amazon’s style should be reviewed and approved by Amazon cataloging team.
Your orders will begin to arrive after the products are created. These usually happen on a weekly basis, but vendor sellers can advise when they want their order delivered. Just because we have organized our products does not mean that Amazon’s ordering from us will happen immediately, or that it will be in considerable quantities.
Amazon has an automated system that checks its orders. This system takes into account sales history, conversion and impression rates, and lag times. In order for your products to be ready for sale from day one, you may consider undertaking the job of delivering the product to the end consumer.
Resources and Requirements
Vendor vendors can use the tools provided by vendor central to improve their listings. In order to increase conversion rates, they can develop their lists by producing A + product promotions, get product reviews and organize promotions by participating in the Vine program, and also start advertising campaigns using “Amazon Marketing Services”.
Vendor sellers should always consider Amazon’s strict buying and shipping rules. Amazon continues with a small inventory of a wide variety of goods within the minimum possible space. This policy allows Amazon to reduce costs and invest heavily in programs such as Amazon Prime. That’s why we must know how vital it is for orders to be received and delivered on time. Vendor sellers must adhere to Amazon’s specific parameters. Otherwise, we may have to face financial cuts that Amazon will impose.
The vendor is Different from Standard Vendor
Businesses familiar with standard vendors should not assume that they can continue the policies they have implemented so far in Vendor sales.