Partnering with Amazon and becoming its seller isn’t the only way to earn money. There are a few other ways that you can utilize. Rather than becoming a seller, you can think of selling directly to Amazon and in turn, they will sell the products for you. Sounds like a good plan? We call this “Amazon Vendor” and differ greatly from “Amazon Seller.” So, let’s understand what it is and what is the Amazon vendor central pricing.
One of the key factors of Amazon’s successful business, especially in selling books is due to this platform. This program welcomes both individual sellers and vendors–the ones who have complete distribution rights or liberty to titles.
With the help of this program, a Vendor sells directly to Amazon and in turn, Amazon sells to its buyers. On the other hand, an Individual Seller pays Amazon a specific fee for using Amazon’s platform as a place for selling to customers and potential shoppers directly.
Once everything is set up, a vendor receives payment from Amazon every month, but on wholesale terms. Now, before this can even happen, a buyer places an order from Amazon directly and pays the respective amount. Then, Amazon ships the merchandise.
However, if a buyer is purchasing directly from the vendor, the respective product page specifies this immediately:
In Stock, Shipped and Sold by amazon.com.”
If you recall properly, you will realize that this business model is pretty much the same as Amazon Fulfillment Program and its self-service consignment program.
If you use Seller Central, the charges work based on the pay-as-you-go fee. For an individual seller, it includes 0.99 cents per item whereas $39.99 for a Professional seller.
Now talking about Amazon Vendor Central, you might think that it is not going to cost anything because it is Amazon who is buying things from you.
However, you will be paying the amount later.
As a vendor, you will pay when Amazon offers you:
Executing campaigns on AMS (Amazon Marketing Services)
Executing campaigns on AMG (Amazon Media Group)
To forward your stock
To utilize their internal support (example: “X” person has worked for you so and so hours per day. This is added up with the annual fee)
To access their Premium Vendor Services (which start at $30K per year)
Well, this entirely depends on where you are planning to sell.
Say, for example, in Europe, you will have to pay VAT taxes. Under EU regulations, it is mandatory for Amazon to charge an appropriate VAT fee on monthly basis – even if the seller has not made any sale.
Shipping cost to send the inventory to Amazon’s fulfillment centers
International return shipping cost
International shipping cost
Conversion cost associated with being paid in your home currency
Customer support cost
Taxes & duties
Translation cost for listing
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