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Decoding Amazon's Vendor Central: A Beginner's Journey into Direct Selling

Amazon Vendor Central (AVC) stands as an exclusive platform for established brands, offering a direct partnership with Amazon. Unlike Seller Central, which caters to third-party sellers, AVC is invitation-only, inviting brands to sell products in bulk directly to Amazon. This collaboration grants brands access to Amazon's vast customer base and infrastructure while offloading responsibilities like warehousing and order fulfillment onto Amazon. While offering increased visibility and marketing opportunities, operating within AVC demands strict adherence to Amazon's performance metrics. Vendor Express, a simpler entry for smaller brands, was discontinued in 2019. Vendor Central Fulfilment streamlines the process of brands selling directly to Amazon, with Amazon managing order processing while vendors handle product manufacturing and shipment. The journey to becoming an Amazon Vendor typically begins with an invitation from Amazon and involves steps like evaluation, onboarding, maintaining performance, and utilizing Amazon's advertising tools to enhance product visibility.

SELLING ON AMAZON

Himanshu from Adsify

11/16/20232 min read

Amazon Vendor Central (AVC)

Amazon Vendor Central is an exclusive platform tailored for established brands and suppliers. It's distinct from Seller Central, which caters to third-party sellers. Think of AVC as a direct partnership between Amazon and brand manufacturers, where Amazon buys products in bulk from these vendors and becomes the retailer.

Key Elements of Amazon Vendor Central:

Invitation-Only: Brands can't simply sign up for Vendor Central; they must receive an invitation from Amazon. These invitations are extended to brands based on various factors like their product category, brand reputation, and potential sales volume.

Wholesale Model: Vendors sell their products to Amazon in large quantities at wholesale prices. Amazon then manages the purchase orders and handles the shipping and warehousing.

Warehousing and Fulfilment: Amazon stores the products in its fulfillment centers and manages the order fulfillment process, including shipping and customer service. Vendors don't have to worry about storing or shipping their inventory.

Product Listings and Pricing: Vendors provide product information, and Amazon creates listings on its platform. Amazon might also adjust pricing based on market demand.

Marketing Opportunities: Vendors get access to various marketing and promotional services, enhancing their product visibility on Amazon.

Purchase Orders and Payments: Amazon generates purchase orders for restocking products, and vendors receive payments based on agreed-upon terms.

Performance Metrics: Vendors are evaluated based on factors like order fulfillment, product quality, and adherence to Amazon's terms. Maintaining high standards is crucial for continued partnership.

Inventory Management: Vendors need to manage their inventory levels to meet Amazon's demand forecasts.

Vendor Express

Vendor Express was a program designed to provide an easier entry point for smaller brands to sell directly to Amazon. However, it was discontinued in 2019. This program offered a streamlined process for brands to submit their products, which Amazon would then list, sell, and fulfill without any fees.

Amazon Vendor Central Fulfilment

Vendor Central Fulfilment is an integral part of AVC. It involves how orders are managed when brands sell products directly to Amazon. Unlike Seller Central, where sellers handle their own fulfillment, Vendor Central Fulfilment places the responsibility on the vendor, while Amazon manages various aspects of the order process.

Vendor Central Fulfilment Workflow:

Bulk Selling: Vendors sell products to Amazon in large quantities at wholesale prices.

Shipment to Amazon: Vendors are responsible for manufacturing, packaging, and shipping products to Amazon's fulfillment centers.

Warehousing: Amazon stores and tracks the inventory in their warehouses.

Amazon Vendor Receive: Amazon staff at fulfillment centers inspect and process incoming products from vendors.

Order Fulfilment: Amazon handles the order processing, packing, shipping, and customer service.

Payment: Vendors receive payments based on agreed-upon terms.

Performance Metrics: Vendors are assessed based on various performance indicators.

Becoming an Amazon Vendor

The process to become an Amazon Vendor typically follows these steps:

Invitation: Amazon invites brands based on criteria like product category and brand reputation.

Contacting Amazon: If a brand fits the criteria but hasn't been invited, they can express interest to Amazon.

Evaluation and Onboarding: If Amazon is interested, they guide the brand through the setup, terms, pricing, and logistics.

Product Listing and Inventory: The brand provides product information and manages inventory in the AVC account.

Performance Maintenance: Consistent adherence to performance metrics is crucial.

Fulfillment and Customer Service: Brands manufacture and send products while Amazon handles the rest.

Advertising and Marketing: Utilizing Amazon's tools to boost product visibility.a

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