How To Become Amazon Vendor?

Selling products on Amazon can be approached in multiple ways, but one of the most exclusive and potentially profitable methods is by how to become Amazon Vendor. 

Unlike third-party sellers who list and sell products to Amazon directly to consumers, Amazon Vendors supply their products to Amazon, which then sells them under its brand. This wholesale approach allows businesses to operate at scale without handling customer service, returns, or direct fulfillment. 

Becoming an Amazon Vendor is not as straightforward as setting up an Amazon Seller Central account. The process is invitation only, meaning Amazon reaches out to businesses they deem a good fit for their retail model. However, businesses looking to sell items to Amazon can take proactive steps to increase their chances of being invited to the Amazon Vendor Program. 

What Is Amazon Vendor Central?

Amazon Vendor Central is an invite-only platform designed for manufacturers, distributors, and large-scale brands to sell their products directly to Amazon. 

Unlike Amazon Seller Central, where third-party sellers list and fulfill their own products, vendors on Amazon operate in a wholesale capacity. They sell their inventory in bulk to Amazon, which then takes care of marketing, pricing, fulfillment, and customer service. 

When a business joins Vendor Central Amazon, they are essentially becoming suppliers to one of the world’s largest online retailers. 

Amazon places purchase orders for their products, sets the pricing, and manages the entire sales process under the “Ships from and sold by Amazon” label. While this provides massive exposure and streamlined operations, it also requires vendors to meet Amazon’s strict fulfillment and pricing standards. 

Eligibility Criteria for How to Become Amazon Vendor

Since Amazon Vendor seller Central operates on an invitation-only basis, there are no publicly available application processes. 

However, businesses that wish to join should meet specific criteria to increase their chances of receiving an invitation. 

Amazon typically invites brands and suppliers that: 

  • Have a strong sales performance on Amazon Seller Central or through other retail channels. 
  • Offer unique, high-demand products with strong consumer demand. 
  • Can provide consistent inventory supply and meet Amazon’s wholesale pricing requirements. 
  • Have a track record of working with large retail chains or wholesale distribution. 
  • Are willing to allow Amazon to set the final selling price of their products. 

How Does Amazon Vendor Central Work?

If you’re questioning how to become supplier for Amazon, once invited, vendors log into Amazon Vendor Central and gain access to a dashboard where they manage purchase orders, track inventory, and analyze sales performance. 

Vendors receive POs outlining how many units Amazon wants to buy, at what price, and when they need to be delivered. 

Afterwhich, vendors ship the requested inventory to Amazon’s fulfillment centers. 

Once the inventory is received, Amazon takes ownership of the products and handles sales, pricing, fulfillment, and customer support.

Vendors receive payments based on their agreed wholesale pricing terms, typically within 30 to 90 days. 

VendorAmazon relationships require brands to relinquish pricing control but benefit from Amazon’s wide distribution network and customer reach. 

Pros and Cons of Selling Directly to Amazon

Selling directly to Amazon has several advantages and drawbacks, which businesses should carefully consider before transitioning to Amazon Vendor Central. 

Products are sold with the “Ships from and sold by Amazon” label, increasing customer trust. 

Amazon handles fulfillment, pricing, and customer service, which also means that vendors receive large-volume orders rather than handling individual sales.

The cons are that Amazon determines final selling prices, which might impact the overall profit margins. 

Vendors often tend to experience delayed payments, with terms ranging from 30 to 90 days. 

Vendors also must adhere to Amazon’s strict fulfillment standards, which can lead to chargebacks or penalties for non-compliance.

Amazon Vendor Central vs Amazon Seller Central

Sellers using Amazon Vendor Central need to be comfortable with bulk sales and relinquishing pricing control, while those using Seller Central maintain more independence but manage fulfillment. 

The key difference between Amazon Vendor Central vs Amazon Seller Central lies in the selling model.

Amazon Vendor Central is invitation only, wholesale-based where Amazon purchases inventory and sells it. 

Amazon Seller Central is open to all where sellers control pricing and fulfillment, leading to higher profit margins but more responsibility. 

Navigating the Amazon Vendor Central Dashboard

Once approved as a vendor, businesses gain access to the Vendor Seller Central Amazon dashboard, which includes key sections:

Creating a Vendor Central Account 

Vendors need to provide essential company details and accept Amazon’s wholesale purchase agreement. 

Banking and Tax Information

Payment and tax details need to be accurately set up to make sure of timely payments and tax compliance.  

Completing Your Company Profile

Providing product information, certifications, and compliance documents ensures Amazon can accurately represent your brand.  

Is Becoming an Amazon Vendor Right for You?

Becoming a vendor on Amazon is ideal for manufacturers and distributors looking to scale their sales and reach Amazon’s wide customer base without managing individual sales. 

However, businesses that want to maintain pricing control and brand authority may find Amazon Seller Central a better fit. 

Best Practices for How to Become Amazon Vendor

To succeed in Amazon Vendor Central businesses should follow best practices: 

Creating Detailed Product Listings 

Providing accurate, optimized product descriptions helps maximize visibility. 

Using GTINs and EANs

Ensuring all products have proper identification codes like GTINs and EANs streamlines Amazon’s inventory tracking. 

Managing Your Product Catalog 

Vendors need to regularly update their product catalogs and track inventory levels to avoid stockouts or order delays. 

Optimizing Product Listings for Vendor Central 

Using Amazon’s A+ Content and keyword optimization improves conversion rates and search rankings. 

Managing Orders and Inventory on Amazon

Tracking Amazon’s purchase orders and ensuring timely shipments prevents compliance issues and chargebacks.  

Frequently Asked Questions (FAQs)

What Does an Amazon Invitation Mean? 

An invitation to join Amazon Vendor Central means Amazon has identified your business as a potential Amazon supplier connect and wants to purchase inventory directly.

Does Amazon Use Third-Party Vendors?

Yes, Amazon sources inventory from both 1st-party vendors (Vendor Central) and third-party sellers (Seller Central).

Does Amazon Pay Vendors? 

Amazon pays vendors based on their agreed-upon payment terms, typically within 30 to 90 days of order fulfillment 

Can You Have Both an Amazon Vendor Account and an Amazon Seller Account? 

Yes, businesses can operate both Vendor Central and Seller Central accounts simultaneously, though they must manage them separately. 

Can I Sell on Amazon Without a Business? 

Amazon Seller Central allows individuals to sell, but Amazon Vendor Central requires an established business with a wholesale model. 

Can You Make Money on Amazon Without Selling Anything? 

Yes, businesses can earn through affiliate marketing, advertising, and dropshipping without directly selling products on Amazon.