Amazon: Vendor and Seller

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SALES MODELS

Amazon offers two sales models. The buyer does not usually differentiate between these models. Most of the public only perceives that they are buying on Amazon.

There is, therefore, no one best option for everyone. It will depend on factors such as your product (own, unique or exclusive distribution), position in the distribution chain (manufacturer, wholesaler or retailer), margin, competition or your business model.

1. Amazon Vendor

• Amazon carries out the logistics management
• Amazon takes care of customer management
• Amazon determines the selling price of your product based on its algorithm.

2. Amazon as a marketing channel (Seller)

• Total freedom to set your pricing policy
• Stock management
• You are ultimately responsible for the customer

SALES REGIMES

Depending on the sales model in which your company operates, there are mainly two sales regimes. It is important to know their main characteristics.

1. VENDOR

1. Aimed at suppliers and manufacturers (your customer is Amazon and not the end consumer).
2. Entry is forbidden. The invitation is sent by Amazon.
3. Improved product pages A+ (typically increase conversion by 3% to 10%)
4. Access to the Amazon Vine programme
5. Increased visibility:
6. - Prime Programme (seal embedded in products)
   - Buy Box
   - International sales (Amazon will sell products in all countries where it operates)
   
7. Access to an improved advertising platform, encompassed within Amazon Advertising:
8. - More advanced formats and options
   - Remarketing of Amazon customers
   - Video Ads
   - Access to Amazon's Demand Side Platform (DSP)
   - Access to advanced analytics reporting
   

2. SELLER CENTER (PRO)

1. Version for third parties who want to sell their products to Amazon customers.
2. Access is on a monthly subscription basis.
3. Access to the five European marketplaces: Amazon.co.uk (UK), Amazon.de (Germany), Amazon.fr (France), Amazon.it (Italy) and Amazon.es (Spain).
4. Limited access to Marketing Advertising (Amazon product campaigns). To apply for access to Display campaigns or DSP you must have an investment of more than 15K euros.
5. You will compete for the Buy Box with sellers who are offering the same product.
6. The management of logistics, warehousing and shipping will depend on the chosen method of fulfilment.