Did you know that there are over 200 million Amazon Prime users around the world? With so many eager customers, more businesses are selling their products on the mega-platform, particularly as an Amazon vendor.
But what does it actually mean to be an Amazon vendor? How is it different from being a normal Amazon seller, and how do you become one?
That’s what we’re here to answer today. Read on to find out more about becoming an Amazon vendor.
Difference Between Amazon Vendor and Seller
Many people aren’t aware that you can become an Amazon vendor. Others get it confused with being a regular Amazon seller.
The biggest difference is the relationship your business has to Amazon. Sellers are just retailers who sell directly to the consumer through Amazon. Vendors sell to Amazon directly, who then sells that product to the consumer.
Think of it like a wholesale order. Amazon buys your products in bulk then stores them in a warehouse to fulfill orders. Once the product is sold to Amazon, they own the right to sell the product itself.
That said, there are clear benefits to working as a vendor for Amazon. You’ll continue to make money with a reputable company through a solid business model.
Becoming an Amazon Vendor
Becoming an Amazon vendor is a little more complicated than becoming a normal seller. You can’t simply sign up or ask to become a vendor.
Getting the Invitation
Amazon’s vendor teams reach out to potential sellers. While some found success reaching out to Amazon to become vendors, the real way to get their attention is to sell reliable products and to build a solid brand.
While there’s no tried and true way to become an Amazon vendor, focusing on becoming a reliable business should come first. Once your business is established, you’ll increase your chances of becoming an Amazon vendor.
Amazon Vendor Account
If you’re able to get a call-up from Amazon, you’ll get access to Vendor Central on Amazon. This is where you set up your products for Amazon to purchase, by setting up each product description and price.
At that point, you’ll start selling products and can expect Amazon to make a weekly purchase. Depending on demand and other factors, you’ll receive more or less frequent orders.
Vendors then ship the products Amazon ordered. They have strict fulfillment procedures, so vendors who don’t hold up their end of the bargain often pay chargebacks.
That being said, there are plenty of ways to reduce any potential deductions when working with Amazon. Follow the link to learn more about Amazon deductions.
Once you have everything set up with Amazon, make sure you check your inventory and let them know the moment something is out of stock. Depending on the payment plan, vendors are paid every 60 to 90 days.
Becoming a Vendor on Amazon
For businesses that accommodate bulk orders, becoming an Amazon vendor might be the perfect move. Use this guide to help you understand how you can become an Amazon vendor and if this is the right path for you.
For more informative articles about Amazon vendors and other topics, check out the rest of our site!
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