Amazon VC stands for “Amazon Vendor Central,” a vendor platform created by Amazon.com to work with manufacturers and large suppliers.Unlike Seller Central, Amazon’s seller platform, which is aimed at manufacturers, brand owners and large suppliers, VC is open to individual sellers and small businesses.
Differences bettwen Amazon Vendor Central and ordinary account
Mode of operation
- Amazon VC account: as a VC supplier, you work directly with Amazon and sell your products directly to Amazon for inventory management and order processing.
- Ordinary account: as a seller, you manage your own inventory, process orders and provide customer service on Amazon.
Selling method
- Amazon VC account: selling products as a wholesaler, Amazon by purchasing your products and selling them under its own name.
- Regular account: sells products as a third-party seller, where you list your products directly on Amazon and handle sales on your own.
Fee structure
- Amazon Vendor Central account: the supplier needs to negotiate prices and contract details with Amazon, the purchase price is usually lower, but may need to bear some cooperation costs.
- Regular account: sellers need to pay Amazon’s commissions, monthly fees and other costs, but can have more flexibility to control product pricing and profits.
Brand display
- Amazon VC account: as a vendor, your products will be displayed on Amazon’s pages, enjoying wider brand exposure and recognition.
- Ordinary account: sellers’ products are displayed on the page competing with other sellers, with relatively low brand display and recognition.
Supply chain management
- Amazon Vendor Central account: Amazon is responsible for supply chain matters such as inventory management, logistics and return processing, reducing the logistical pressure on suppliers.
- Ordinary account: sellers need to handle inventory management, logistics and returns and other supply chain matters on their own, with higher control over the supply chain, but need to assume more responsibility and workload.
Benefits of Amazon Vendor Central
- Amazon takes care of marketing : Vendors don’t have to deal with marketing and sales directly.
- Large orders: Amazon may place large orders, bringing in steady sales and revenue.
- Amazon’s credibility: items are sold directly by Amazon, potentially increasing consumer trust.
Disadvantages of Amazon Vendor Central
- Amazon has a lot of control: has a lot of discretion over when and how much products are purchased.
- Complicated account management: signing up and managing a Vendor Central account can be tedious.
- Payment terms may be unfavorable: Amazon’s payment terms may not be as favorable as other channels.
Steps to apply for an Amazon VC account
- Selected products: First, make sure you have a product that performs well in the marketplace, which is an important consideration for Amazon to invite you to become a vendor.
- VC manager: if you wait until you get an invitation from the official, you will be contacted by a specialized VM
- Wait for review: Amazon will review your application. If they think your product meets their needs, they will send you an email invitation to join.
- Accept the invitation: This process requires filling out detailed information and accepting Amazon’s terms and conditions.
- Build your supply chain: once your account is set up, you need to start building your supply chain to make sure you can fulfill Amazon’s orders.
Some key information about Amazon Vendor Central
Vendor Relationships
the VC is designed to create direct partnerships between Amazon and manufacturers and suppliers. Amazon acts as a partner to suppliers, sourcing their products and selling those products on the Amazon platform.
Sourcing Model
VC uses a sourcing model rather than allowing vendors to stock their own shelves and sell their products. Amazon buys products directly and then sells them through its own platform.
Vendor control
vendors have more control on VC, they can provide product information, pricing strategies and promotional programs. Amazon will use this information to make sales and promotions.
Order processing
Amazon will take care of order processing, packaging and logistics. Vendors just need to deliver the product to Amazon, and then Amazon will take care of the follow-up.
Contractual relationship
Amazon Vendor Central usually involves a long-term contractual relationship where the supplier enters into an agreement with Amazon, agreeing on details such as terms of sale, pricing and availability.
Target market
Amazon Vendor Central are primarily aimed at manufacturers and large suppliers who want to sell their products on Amazon’s platform. This allows them to leverage Amazon’s traffic and advertising channels to promote their products.
Amazon Vendor Central provides a convenient way to help suppliers leverage Amazon’s marketplace reach and traffic in order to expand their business.
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