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Difference Between Vendor and Seller on Amazon

Amazon is among the most popular online marketplaces where businesses get their clientele. The platform offers a variety of Amazon fulfilment options such as Amazon vendor and Amazon seller. Choosing the fulfilment method is a vital consideration since it affects the way businesses should operate while selling on Amazon. If you are planning to list your products on the platform, understanding the differences between Amazon vendor and seller is important. 

Who are the Vendors on Amazon?

Used by direct distributors and manufacturers, this is a fulfilment method where vendors sell their products directly to Amazon in bulk. The vendors hence act as the suppliers. However, registration is strictly by invite only, a strategy that limits most businesses from the program. Also, it is easy to differentiate an Amazon vendor from other sellers since their profile has a ‘ships from and sold by Amazon’ phrase on the order page. 

Among the features of Amazon vendor include:

  • It is an invite-only program
  • Vendors sell to Amazon in bulk
  • Retail pricing is controlled by Amazon
  • Amazon offers fixed logistical options
  • Multiple marketing & advertising options are offered
  • Follows a traditional sales process

Here are the advantages of Amazon vendor

  • It builds consumer confidence through the Amazon name recognition
  • It offers a wide range of advertising opportunities
  • It is a simplified model since a business only needs to fulfil the orders to Amazon
  • It offers marketing tools and enhanced content

Cons of Amazon vendor

  • Vendors do not have control over the pricing of their products. This is because Amazon can adjust the retail pricing based on its internal algorithms
  • Vendors are subjected to rigid and strict order fulfilment logistical requirements
  • It creates over-reliance on Amazon as a buyer. If the platform cancels the vendor account, vendors are left with lost revenue
  • Vendors lose control of their brand

Who are the Sellers on Amazon?

This is an Amazon program where merchants market and sell their products via the platform. Amazon has both professional and individual seller accounts. A professional seller account requires a monthly subscription to maintain. However, it offers preferential marketing treatment, analytics tools and other vital features. It also gives the leeway for sellers to set up their accounts, maintain it and set prices. Amazon sellers have two options for fulfilling orders, the third-party logistics provider and the fulfilled by Amazon program. 

Here are some features of Amazon seller

  • It is open to anyone
  • Merchants get full control of their accounts
  • Merchants get to sell directly to the customers
  • Merchants get to set the pricing
  • Offers enhanced brand content

Advantages of the Amazon seller program include:

  • Sellers get to control the pricing
  • Sellers have control over messaging on their accounts
  • The program allows sellers to access vital amounts of consumer data
  • Sellers have full control over their inventory

However, it has some cons

  • The program has higher fulfilment costs which lowers profit margins
  • Not all sellers are well versed with the provided marketing tools on the platforms

Similarities between Vendor and Seller on amazon

  • Both are Amazon merchant programs

Differences between Vendor and Seller on amazon

Order fulfilment

Orders on Amazon vendor are fulfilled by Amazon. On the other hand, orders on Amazon seller are fulfilled by the merchant. 

Restrictions

While joining Amazon vendor is restricted to invite-only, Amazon seller has no restrictions hence anyone is open to join.  

Logistics

Amazon vendor has fixed logistics options while Amazon seller has flexible logistic options.

Pricing control

Amazon controls the pricing in Amazon vendor. On the other hand, merchants control the pricing in Amazon seller. 

Advertising options

While Amazon vendor has multiple advertising options, Amazon seller has limited advertising options. 

Sales process

Amazon vendor follows a traditional sales process while Amazon seller follows a complex sales process. 

Vendor on Amazon vs. Seller on amazon: Comparison Table

Summary of Vendor and Seller on amazon

Orders on Amazon vendor are fulfilled by Amazon. It is restricted to invites only and follows a traditional sales process. As such, it is mostly preferred by large and established brands. On the other hand, orders on Amazon seller are fulfilled by the merchant. It is mostly preferred by small brands since it has no joining limitations. However, it has limited advertising options. 


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    References :


    [0]Kraynak J & Olmez D. Selling on Amazon For Dummies. John Wiley & Sons, 2020.https://books.google.co.ke/books?id=hejqDwAAQBAJ&pg=PA13&dq=Difference+between+Vendor+and+Seller+on+amazon&hl=en&sa=X&ved=2ahUKEwjBoLTUsezwAhWBOewKHb_lDRIQ6AEwAHoECAkQAg#v=onepage&q=Difference%20between%20Vendor%20and%20Seller%20on%20amazon&f=false

    [1]Vinyard R & DiResta R. The Hardware Startup: Building Your Product, Business, and Brand. "O'Reilly Media, Inc.", 2015. https://books.google.co.ke/books?id=EI2rCQAAQBAJ&pg=PA247&dq=Difference+between+Vendor+and+Seller+on+amazon&hl=en&sa=X&ved=2ahUKEwjBoLTUsezwAhWBOewKHb_lDRIQ6AEwA3oECAcQAg#v=onepage&q=Difference%20between%20Vendor%20and%20Seller%20on%20amazon&f=false

    [2]John Paul Mueller. Mining Amazon Web Services: Building Applications with the Amazon API. John Wiley & Sons, 2006. https://books.google.co.ke/books?id=TK1LltrQSCIC&printsec=frontcover&dq=Difference+between+Vendor+and+Seller+on+amazon&hl=en&sa=X&redir_esc=y#v=onepage&q=Difference%20between%20Vendor%20and%20Seller%20on%20amazon&f=false

    [3]Image credit: data:image/png;base64,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

    [4]Image credit: https://www.sellbrite.com/wp-content/uploads/amazon-seller.png

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