As a seller on Amazon, you have to decide whether to sell as 1st party (Amazon Vendor) or 3rd party (Amazon Seller). Although there’s a substantial difference between an Amazon Seller and Amazon Vendor, it’s relatively simple to determine:
- Amazon Vendor: Sells products to Amazon and Amazon, in turn, sells those products to the buyer on their marketplaces. When selling as an Amazon Vendor, you’ll use Amazon Vendor Central as either a distributor or a manufacturer. Here, Amazon buys items in wholesale from the Vendor on a monthly basis (only after a buyer has ordered, sent the payment to Amazon and Amazon has realized the shipment). When a product is sold by an Amazon Vendor, the product page will specify, “In Stock, Shipped and Sold by amazon.com.”
- Amazon Seller: Pays Amazon a fee for selling directly on the Amazon marketplaces. If you decide to become a third-party vendor, you’ll use Seller Central. You can still choose to use Fulfillment by Amazon (FBA) so that Amazon processes and ships your orders. Alternatively, you can manage to ship all by yourself.
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