In this precise historical period we are facing an inevitable digital revolution, with which we all try to keep up. Investing in a proprietary e-commerce can be complicated and costly in terms of economic and human resources to allocate. So brands that want a faster, less complex solution can start interfaiting with the Amazon world and start a faster rise in online sales.
How to sell on Amazon, what options do we have?
There are two options: sell as a” Third Party Seller” or as a ” First PartyVendor“.
But let’s go into more detail: if you choose to sell as Seller you will be considered as an independent third party compared to Amazon, and you will have the opportunity to sell directly to the end customer. In this case you will have access to Amazon’s Seller Centralplatform, where you can check your sales and traffic performance, check the warehouse and change the prices of your offers in real time.
We will have to pay Amazon a commission as a percentage on each sale, which may vary depending on the reference category.
La soluzione Seller Central
As a Seller you can choose two different routes for shipping: FBM or FBA.
Sellers who will use the FBM (Fulfilled by Merchant) solution will have to ship their goods directly to the end customer through a courier chosen at the company’s discretion.
FBA (Fulfilled by Amazon) is the program that lets you take advantage of Amazon’s logistics,benefiting from the“Prime”badge. In this case, you can send your products to the Amazon warehouse, which will then send the goods to end users and manage any returns. It’s definitely a very tempting solution, considering the flash deliveries for which Amazon is the most competitive and efficient.
However, this solution carries additional costs, which are a storage fee at Amazon warehouses that vary depending on the weight, size and length of stay of the packages, and a management fee that includes shipping from Amazon to the end customer.
La soluzione Vendor Central
The Vendor solution has a different approach, as the brand will sell its products, not to the customer, but directly to Amazon at a price considered wholesale. Then on Amazon.it the following word will appear:“sold and shipped by Amazon”.
It will not be the brand itself that decides how many and which products to send to Amazon but it will be Amazon itself that sends Purchase Orders (PO) to the company, which are generated based on algorithms that continuously study the potential of the products.
Unfortunately, the Vendor system only works by invitation from Amazon.
Which one is better to choose?
There is no better solution than another, it all depends on the type of company and what we set ourselves through selling on Amazon.
Vendor Central may be more useful for large companies that deal with large quantities of products and are willing to sell wholesale to Amazon by negotiating the terms. In addition, through Vendor you have access to exclusive initiatives and take advantage of larger advertising packages and advanced reporting, as in the case of Programmatic Advertising.
Seller Central gives you more control over prices, inventory and product promotions. But it requires much more autonomy in platform management and more time to follow the whole process of loading, selling products and controlling the channel.