A starter information to Amazon Vendor Central
Becoming a third party is not the only way to make money with Amazon.
What if I told you that there is a way to get rid of the bulk of your seller admin and focus solely on helping a single customer who is selling your products for you?
This is exactly what you can expect from Amazon Vendor Central.
We will dive deep into the platform and discuss:
- What is Vendor Central and how do I get an invitation?
- The main differences between Seller Central and Vendor Central.
- The advantages and disadvantages of a provider.
- How to measure your success on the platform and more.
Let's start!
What is Amazon Vendor Central?
Vendor Central is an invitation-only platform that allows you as a supplier to sell directly to Amazon. It is similar to Seller Central, where vendors can manage their orders and product data from a central hub.
When you receive an invitation and sign up, the process works as follows:
- Amazon will place an order with you.
- You send the inventory.
- Amazon pays you and is responsible for selling the items.
This is a great option for businesses that don't want to sell directly to customers. However, the platform has its challenges that you need to consider if you want to determine if Vendor Central is a good fit for you.
Amazon Vendor Central vs. Seller Center
The main difference between Amazon's Vendor and Seller Central platforms is who is selling the product.
With Vendor Central you sell directly to Amazon and they resell your goods.
With Seller Central you sell directly to Amazon users.
Here is a more detailed comparison between the two accounts:
Vendor Central:
- Invitations only
- They sell directly to Amazon
- Amazon controls the price of items
- fixed logistic options
- more advertising opportunities
Seller Central:
- Anyone can register
- You sell directly to customers
- You control the selling price
- flexible logistical options
- fewer advertising opportunities
Pros and cons of joining Amazon Vendor Central
Before you sign up, it's a good idea to review the pros and cons to see if joining will be positive or negative for your business.
Here are some of the benefits of joining the Amazon Vendor Central platform:
Consumer confidence
As an Amazon provider, the customer will feel more secure when buying the product. You benefit from Amazon brand name recognition, which creates trust and makes it easier to close the sale.
Further advertising opportunities
While Amazon Marketing Services (AMS) is available in Seller Central, you as a provider have access to additional functions. This allows you to create even stronger advertising campaigns and drive traffic to your product pages.
The sales process is simplified
As a seller, you are responsible for things like fulfilling direct sales orders, tax liabilities, inventory losses, and other business costs.
Deploying Amazon simplifies your business model. All you have to do is focus on fulfilling your orders and billing Amazon. All other administrative tasks are eliminated and you don't have to worry about looking after multiple buyers.
Exclusive advertising programs
Amazon providers have the opportunity to participate in programs such as Subscribe & Save and Amazon Vine. Accessing these programs can help improve reviews and your ranking in organic search, and lead to more sales.
Here are some of the cons of joining the Amazon Vendor Central platform:
Price control
Vendors have no control over the price of the items. Amazon can adjust prices at any time, which can cost you additional revenue if margins are changed.
Logistic requirements
Failure to follow Amazon's specific logistical guidelines can quickly impact your profits. For example, you need to keep your stocks on hand and fulfill your orders quickly.
Loss of Brand Messaging
When you become a seller, your products will be shipped to customers in a standard brown Amazon box. You lose control of your brand and the ability to personalize the buyer experience.
Your sales channel is limited
While having Amazon as a buyer is great, having them as your only customer is a huge business risk. If you rely on a single buyer, you could get into trouble if Amazon stops using you as a supplier.
As you can see from the advantages and disadvantages of joining the platform, Vendor Central is not for everyone. This is a much better option for manufacturers and wholesalers looking to handle logistics, support, and returns from Amazon.
How to join Amazon Vendor Central
Becoming an Amazon seller is not as easy as setting up an account with Seller Central.
As mentioned earlier, this is an invitation-only platform. You can't just apply. You first need an invitation from Amazon.
How do you get one
Amazon has a global vendor recruiting team looking for new brands and products to sell.
In general, these recruiters are looking for:
- High sales sellers on Seller Central.
- Marketplace sellers with popular products.
- Exhibitors at trade fairs and fairs with interesting products.
If Amazon is interested in what you are selling, you will receive an email asking you to join Vendor Central. The team explains how the process works and what terms and conditions apply.
As soon as you agree to the conditions, you will have access to a Vendor Central account and can deliver directly to Amazon.
5 tips to be successful as a member of Amazon Vendor Central
Don't rely on Amazon to do all the heavy lifting. Here are five things to start today to increase your conversion rates and your brand recognition as a provider.
1. Submit your inventory to the Amazon FBA Fulfillment Center
Do you want to increase your sales? Make sure your items are eligible for Amazon Prime.
Prime members are loyal Amazon buyers who pay $ 119 annually to access a range of benefits, including faster shipping.
When you make sure your product is Prime eligible, you open up to a pool of 126 million US buyers willing to buy more than the average Amazon user.
Do not you believe me? Prime members spend an average of $ 1,400 per year while non-members spend $ 600.
2. Improve your Amazon SEO
With 4,000 sales per minute on Amazon, how do you stand out and get some for your business?
By mastering the SEO for Amazon's A9 algorithm.
As with other search engines, you can use basic SEO techniques to get your products to the top of search results.
To do this, you want to include search terms in:
- Product name
- Backend keywords
- Brand name
- Description of the product list
By taking the time to optimize your offers, you will maximize the visibility of your products and increase your sales opportunities.
3. Increase the number of ratings
Reviews are Amazon's lifeblood. The more 5-star ratings you have, the more the algorithm recommends your product to potential customers.
Humans are a bit like lemmings too.
When we see a group of people raving about how great a product is, it's far more likely that we will make the purchase. This confirms that we are making a good decision and we are more certain that the product will work.
In fact, 88 percent of customers say they rely on both online reviews and personal recommendations.
In fact, 56 percent of customers read at least four reviews before making a purchase.
4. Don't just rely on Amazon traffic
It can take a while for all of your SEO work and reviews to begin. While you wait, generate traffic to your product pages by serving ads outside of Amazon.
Some of the ways you can increase demand are:
5. Run ads for sponsored products on Amazon
Sponsored product ads are a great way to increase conversion rates and make your products easier to find in organic search results.
You can set up automatic (great for PPC beginners!) And manual product ads in Seller Central.
How effective are these ads? On average, SPAs have a conversion rate of around 10 percent.
How to measure your success at Amazon Vendor Central
Here are some ways you can measure your success on the platform:
Keyword research and monitoring
Take the time each month to identify new keyword opportunities for your products and how the algorithm is performing.
If you noticed that you went up or down the ranking, identify the cause of the replication or adjust your strategy.
Advertising analysis
If you want to campaign for your listings, use the results to create more powerful listings.
For example, you might find keywords in advertising reports that you don't use. Add these to your existing campaigns and see if that improves your click-through rates and sales.
How to get product reviews on Amazon Vendor Central
Here are some of the best ways to get more ratings for your Amazon Seller listings:
Amazon Vine program
One of the best, and fastest, ways to get reviews is on Amazon Vine. The program is open to sellers who have less than 30 ratings and an eligible ASIN.
What is an ASIN? It stands for Amazon Standard Identification Number. It is a unique sequence of letters and numbers that is used to identify products in your catalog.
The wine program works as follows:
You are sending 30 products to 30 Vine Voices for free. These reviewers are selected for the program by Amazon and are selected for writing accurate and insightful reviews.
Once the reviewers receive your product, they give it a try and write a review.
Enroll in the Amazon Early Reviewer Program
Amazon's Early Reviewer Program is a great option for new sellers with products with fewer than five reviews.
The platform incentivizes customers by offering a $ 1 to $ 3 gift card in exchange for a review of a new product.
To enroll in the program, you must pay $ 60 per SKU. A SKU is a storage unit. This is an identification code for products and stores on Amazon.
Fortunately, you won't be charged until you get your first review.
Use the Request Review button in Seller Central
In Seller Central, you can request a view of customers in order reports. This feature allows you to send a follow-up email to buyers within four to 30 days of purchase.
When you click the button, the customer will be notified that you would like to hear their feedback.
By now you're probably thinking, "Does this request review feature actually work?"
In short, yes. According to Jungle Scout, sellers who used the button saw their ratings increase by 94.7% within the first week of launching the feature.
Conclusion
Amazon Vendor Central is a great option if your company has the right solution. If you need help optimizing your account, I have a free Amazon training course with checklists, tips, and a profitability calculator.
Do you need more help? We'll help you manage your Amazon advertising campaigns and stop wasting money on ads that are no longer generating sales.
Do you think Amazon Vendor Central is right for you?
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