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Amazon vendor or seller: which is right for your brand?

Should your brand sell to Amazon as a vendor or sell on Amazon yourself as a seller? A plain comparison of control, cash flow, margin and effort, with a checklist to help you decide.

There are two ways to get your products on Amazon. You can sell to Amazon, and let Amazon sell them to shoppers. Or you can sell on Amazon yourself, using Amazon as your shop window. The first makes you a vendor. The second makes you a seller.

Both can work well. The right choice depends on how much control you want, how your cash flow works, and how much your team can run day to day.

What each one means

Vendor (also called first party, or 1P). Amazon buys your products from you at a wholesale price, the way a supermarket would. You receive purchase orders, ship stock to Amazon’s warehouses, and send an invoice. From then on the stock belongs to Amazon. Amazon sets the price shoppers pay, and the product shows as "Ships from and sold by Amazon". You manage it all through an account called Vendor Central. Vendor accounts are by invitation from Amazon.

Seller (also called third party, or 3P). You keep ownership of your stock and sell directly to shoppers on Amazon. You set your own prices and run your own promotions. Amazon charges a referral fee on each sale, plus fulfillment fees if Amazon stores and ships for you. You manage it all through Seller Central, and any business can register.

Side by side

Vendor Seller
How you joinBy invitation from AmazonAnyone can register
Who sets the priceAmazonYou
Who owns the stockAmazon, once it buys itYou, until a shopper buys it
How you’re paidAmazon pays your invoices on agreed terms, often 30 to 90 daysAmazon pays out your sales regularly, after its fees
Your marginWholesale margin, plus negotiated terms such as marketing and damage allowancesRetail price, minus Amazon’s fees
Day-to-day workPurchase orders, deliveries, terms negotiationListings, pricing, stock, shipping, customer questions
Product pagesYou can edit them, but Amazon has the final sayYou control them, especially with Brand Registry
PromotionsAgreed and funded with AmazonYou decide and fund them yourself
Shipping in EgyptYou deliver in bulk to AmazonAmazon stores and ships (FBA), Amazon collects from you (Easy Ship), or you deliver yourself

When being a vendor makes sense

  • You think like a supplier. You already sell wholesale to supermarkets or distributors, and your team is set up for large orders, invoices and delivery schedules.
  • You want Amazon to handle the shopper. Amazon looks after pricing, customer service and returns, so your team can focus on making and supplying.
  • You can wait to be paid. You have the cash flow to wait for invoices to be paid on Amazon’s terms.
  • Trust matters in your category. "Sold by Amazon" reassures shoppers, especially in categories where fakes are a worry.
  • You can supply reliably. Amazon expects you to confirm and fill its orders on time. Missing them hurts your relationship and your sales.

When being a seller makes sense

  • You want to control your price. You decide what shoppers pay, and you keep your price in line with your shop, your website and other marketplaces.
  • You want faster cash. Sales are paid out regularly instead of on long invoice terms.
  • You want to move quickly. You can launch products, run deals and change pages without waiting for Amazon.
  • You have, or can hire, the people to run it. Being a seller means managing listings, stock and pricing every week.
  • You’re starting out. Anyone can register as a seller, and a strong sales record as a seller is one of the things that can lead to a vendor invitation later.

You don’t always have to choose one

Some brands do both. They supply their best-sellers to Amazon as a vendor, and sell the rest of the range as a seller. Done well, this gives you Amazon’s reach on your core products and full control on the rest.

Done badly, it means competing with Amazon on your own products. So if you go this way, decide clearly which products sit on which side, and stick to it.

How to get a vendor invitation

You can’t simply sign up as a vendor. Amazon usually looks for:

  • A brand you own, ideally with a registered trademark.
  • Proof of demand, such as strong sales as a seller on Amazon, or a strong position in shops.
  • The ability to supply at scale, with reliable stock, delivery and invoicing.

If you’re aiming for a vendor account, the usual path is to start as a seller, build a sales record and good product pages, and grow from there.

Where we can help: we know how Amazon’s vendor teams look at a brand. We’ll help you get ready (pages, sales record, supply and pricing) and put your brand forward to the right people at Amazon for a vendor invitation.

Mistakes we see often

  • Chasing the vendor badge without checking the margin. Once you add the terms Amazon negotiates, such as marketing and damage allowances, the wholesale margin can be thinner than expected. Work out the numbers first.
  • Letting your prices drift apart. As a vendor, Amazon may lower its price on your product to match a cheaper offer elsewhere. Keep your prices consistent across your shop, website and other marketplaces, so it isn’t pushed down.
  • Ignoring resellers. Whichever route you take, other sellers may already be selling your products on Amazon, sometimes with poor pages or the wrong price. Find them early and decide whether to authorise them or remove them.
  • Underestimating the work as a seller. Being a seller is a weekly job: stock, pricing, ads and customer questions. Plan for who will do it.

A quick checklist

Answer these, and the right route usually becomes clear:

  1. Do we need to control the price shoppers pay? If yes, lean towards seller.
  2. Can we wait 30 to 90 days to be paid? If not, lean towards seller.
  3. Are we set up to fill large purchase orders on time? If yes, vendor can work.
  4. Do we have someone to manage listings, stock and ads every week? If not, vendor, or a partner who runs it for you.
  5. Do we own a registered brand? Both routes are stronger with one, and vendor usually needs it.

Not sure which route fits your brand?

Send us your product or store link. Within 48 hours we’ll send you a short, free review of where you stand on Amazon and which route we’d recommend.