A Guide on How to Become a Vendor on Amazon

A Guide on How to Become a Vendor on Amazon

If you have your own product, you are able to make various types of sales through Amazon.com. The biggest online marketplace worldwide offers many options to select from.

One option is to become a vendor, which enables the user to be a supplier to Amazon or a distributor for Amazon.

Being an Amazon seller offers sellers many advantages, however, the seller is not able to become a vendor on its own. Amazon chooses its own, and then invites as vendors the sellers with top-selling items

Amazon Vendor or Seller: What Is the Difference?

The majority of sellers on Amazon have third-party vendors employing FBA (Fulfillment via Amazon) as well as FBM (Fulfillment By Merchant) fulfillment or a combination of both.

This implies that Amazon sellers are selling their product directly to the customer while taking care of all aspects of the sales process that relate to every order including sales, marketing campaigns, pricing strategies, return, etc. Amazon seller's sales operations are carried out via Amazon Seller Central Accounts.

There's another option to sell your products on Amazon that is to become a vendor Amazon.

The main difference between vendors Amazon as well as Amazon sellers is the fact that sellers Amazon sell their products direct to Amazon as distributors or manufacturers in this manner, being Amazon's initial-party partner.

If you are an Amazon vendor, it means you are able to offer bulk quantities or consignments of your products directly to Amazon at wholesale prices while Amazon handles the retail sales to end users under its own brand. The products are labeled "Ships from and sold by Amazon.com."

Amazon Vendor Central is the web interface used by manufacturers and distributors. If you sell via Vendor Central, you're called a first-party seller. You're acting as a supplier, selling in bulk to Amazon.

How to Become a Vendor on Amazon?

If you now know the distinction between a vendor and an individual vendor, you'll naturally ask yourself what it takes to become a seller for Amazon and how you can turn into an Amazon distributor.

It's not as easy as it appears. When you sign up on Amazon it is not possible to say "I've decided that I want to be an Amazon vendor' and sign in to a vendor programme or start an Amazon distribution.

It is entirely Amazon's decision whether or not to invite you to join the Amazon vendors program, or not and if you are eligible to have any chance of becoming an Amazon vendor. If they decide to do so, the Amazon team will mail you an email inviting you to be an Amazon vendor.

The criteria for selection are consistent and high traffic and also a high sales for your brand. If Amazon finds that your brand grows in popularity and has an impressive conversion rate and has a high volume of purchase orders, they could be interested in you as a possible vendor.

What is the Amazon Vendor Program?

In the Vendor Program, your brand is able to establish a wholesale partnership with Amazon and you are an Amazon partner as part of the Amazon Vendor Program. For a seller that is a vendor, they must sign up their brand to the Amazon Brand Registry program.

How Does a Vendor Account Work?

If you've received an invite from Amazon to join as an Amazon seller, you must decide whether or not you want to accept it. If you're interested in the opportunity, you must agree to the conditions and terms, and gain access to Vendor Central.

After that, you will have to choose the items that you have on hand for Amazon to make purchase orders.

This can be done under this section, which is located in the "Items" tab. It is necessary to enter your information including price and then be patient for purchases from Amazon. Purchase orders are generated automatically each week, based on the quantity of orders.

When the purchase order has been received by Amazon You will have to deliver the goods ordered to the warehouses designated by Amazon. Be aware that it is crucial to adhere to the conditions of delivery in case of delays or errors, which can result in fines and chargebacks.

The payment made through Amazon will be made either within 90 or 60 days depending on the payment plan that you choose on Amazon.