Mindset Switching: From VendorCentral to SellerCentral

How to Onboard the SellerCentral Channel

Very exciting that you’re considering to LAUNCH on SellerCentral.

Below will explain why this strategy makes sense, and how your company will execute.

Recap:

  • We experience Amazon VenderCentral to be consistently ignorant of brands that are selling less than $10M/year.
  • Your company is fits into that and must take actions into your own hands

PROs:

  • The Main Benefit: SellerCentral provides full pricing flexibility. We can update prices daily if we want.
  • Assortment Opt-In: We manage the catalog. Amazon becomes a transactional tool for direct sales
  • Dropship: Similar to VendorCentral, we can dropship directly to end customers
  • Amazon 3PL: For high-volume/low-dollar SKUs we can pay Amazon 3PL to pick/pack/ship on our behalf

CONs:

  • Smaller Average Order Value than traditional VendorCentral
  • We assume responsibility for Customer Service

Allowances:

  • VendorCentral: Allowances deducted from Wholesale/Invoice
  • SellerCentral: Allowances deducted from Retail

Assuming $20 Wholesale & $40 Retail:

  • Vendor NET is ~$16
  • Seller NET is ~$34 (freight/customer-service is Vendor Responsibility)
  • (if freight is $10/unit, NET is still dramatically higher)

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