Amazon – 2AV – sprzedawaj do Amazon

Amazon is the largest online retailer, and was founded in 1994 by Jeff Bezos.

Today it is a huge company with enormous capabilities that sells all over the world and has:

Over 500 million users

Over 300 warehouse locations

Over 560,000 employees

Amazon sales channels

Amazon Marketplace (Seller Central)

B2C sales to the end customer, shipping from your own or partner’s warehouse.

Amazon Marketplace with FBA

B2C sales to the end customer through Amazon using Amazon logistics solutions and processes.

Amazon Retail (Vendor Central)

Direct sales to Amazon as a B2B buyer.

Amazon Retail Direct

B2B sales in the form of dropshipping.

Amazon Retail FOB

B2B container sales.

Differences between Seller Central and Vendor Central.

What is Amazon Retail?

Amazon Seller Central

Portal for retail sales through the Amazon marketplace

Amazon Vendor Central

Amazon supplier portal. Direct B2B sales to Amazon.

Amazon Retail

Business partner for suppliers

Introduction

Most of us have had their adventure with Amazon started or is starting through Amazon Seller Central, a standard marketplace model (third-party seller), in which the seller is responsible for product listing, price management, sales, shipping and customer service. Alternatively, a seller operating on Amazon Seller Central has the opportunity to use FBA (Fulfillment By Amazon), i.e. comprehensive logistics services. Information about what exactly FBA is and how it works can be found on the website below:
services.amazon.com

Seller Central

Selling through Amazon Seller Central is not as easy as it seems. The commission of 15% of the gross amount (it may vary in some product categories) eats up most of our margin, and this is just the beginning. Logistics is another element that will keep us awake at night. When shipping goods directly from our warehouse, Amazon carefully checks this process and the margin for error is small. We receive a warning when the late delivery rate is exceeded by just two percent. Exceeding 4%, Amazon limits the functions of our account and disables offers made through the merchant’s warehouse (only offers made via FBA remain). As our business grows, we want to conquer new markets. Of course, Amazon Seller Central gives you the opportunity to sell on the 5 largest marketplaces in Europe (Germany, UK, France, Italy and Spain). But let’s not forget that 5 marketplaces mean 5x more problems. In addition, once we exceed the tax thresholds, we are required to register for taxes in these countries. If so, are there any positives to Amazon Seller Central? Of course it does. The biggest advantages of Amazon Seller Central are first and foremost: quick access to the money earned, easy management of pricing policies and product offerings, transparent fees, and freedom to make changes to the account.

Vendor Central

Amazon Vendor Central is not only about sales management, it is also a powerful mechanism for creating offers and products, which is not present in the marketplace model. Amazon Retail provides tools to add more photos, video or graphic template. It has a system for creating internal campaigns with visual-text ads. Supports in creating a brand store and getting feedback/reviews on products. A product sold to Amazon Retail automatically becomes a Prime offer. Unfortunately, selling through Amazon Vendor Central also has its downsides. The biggest challenge is managing the pricing strategy (it’s hard to increase the price of a previously added product). With repeated errors due to the supplier’s performance, Amazon charges financial penalties. Without the processes in place internally and with increased sales to Amazon Retail, we will need a staff of people to handle the Vendor Central account. Unfortunately, Amazon Vendor Central, unlike Seller Central, is not for everyone. This cooperation model is mainly aimed at manufacturers and direct suppliers. It is in vain to find a place for companies selling products from well-known brands, since Amazon Retail itself is a direct distributor of them. Comparing the two solutions, we see both their advantages and disadvantages. We will not find a golden mean that will be 100% in line with our expectations. Nevertheless, Amazon Retail is a very interesting option for expanding overseas markets and growing the business. Through Amazon Vendor Central, we will quickly increase the turnover of our company and begin to create awareness of our own brand in the global e-commerce market.

Retail

Amazon Retail is the solution to the problems created at Seller Central. Using Amazon Retail (Vendor Central) the goods are sold directly to Amazon. Amazon becomes our business partner, a B2B customer. Working with Amazon Retail allows us to focus on the most important part of our business – the product. So what are the advantages of selling through the Vendor Central channel? We are completely out of contact with the end customer and after-sales service. The logistics process is greatly simplified – when placing an order, Amazon Retail designates the warehouses (fixed addresses) to which the goods should be delivered. For larger orders, we can deliver goods by dedicated transport on pallets. A great advantage is the possibility of delivery to warehouses located in Poland (Wroclaw, Poznan, Szczecin, etc.). There is no sales commission in this model. This means that Amazon, when buying goods from us, does not charge additional fees. By deciding on price terms, Amazon can take over marketing activities from us or accelerate the payment date of invoices, among other things. Keep in mind that selling to Amazon Retail is not a retail sale, so we don’t have to worry about exceeding tax thresholds and specializing in a country’s commercial and accounting law.

Summary

Comparing the two solutions, we see both their advantages and disadvantages. We will not find a golden mean that will be 100% in line with our expectations. Nevertheless, Amazon Retail is a very interesting option for expanding overseas markets and growing the business. Through Amazon Vendor Central, we will quickly increase the turnover of our company and begin to create awareness of our own brand in the global e-commerce market.