In recent times, Amazon Vendor central has been experiencing some prominent changes that haven’t gone unnoticed by vendors. Several vendors have taken note of the fact that there has been a sharp reduction in their purchase orders, and also an extensive delay in between purchase orders.
Because of the glaring shake-up, lots of vendors are now moving over to Amazon Seller Central in the hope that they will face less purchase order problems, and have a more responsive service. However, despite the max-exodus of several vendors from vendor central to seller central, some vendors are still skeptical about what Amazon Seller Central has to offer. If you are one of such persons, it is vital you take a comprehensive look at the advantages and disadvantages of moving from Amazon Vendor to Seller Central.
This guide provides a detailed look at the pros and cons of each, and it lets you know what to expect from each side. The guide also provides some easy to use steps that you can employ to make your transition smooth should you decide to move from Vendor to Seller Central.
Pros and Cons of Amazon Vendor Central and Amazon Seller Central
There is no denying it that the shake-up Amazon Vendor Central has experienced recently will most likely happen again in the not so distant future. Most observers and experts are of the opinion that the changes are all part of an Amazon long term plan to bridge the gap between vendor or seller division, and thus improving their profit margins.
If you are considering transitioning from Amazon Vendor to Seller Central, it is vital you know and understands what awaits you. Although both are a bit different in their operations, they both have some similarities, such as similar marketing tools. On the other hand, one key distinctive feature between both is in the area of control and responsibilities.
Whereas seller central guarantees more control, it comes with more responsibilities when compared to vendor central.
These are preambles of pros, and cons of both vendor and seller central. Below is a detailed explanation of the pros and cons of Amazon Vendor Central and Amazon Seller Central.
Is now the right time to switch to Amazon Seller Central?
There is bound to be another series of shake-ups soon, and it will be wise for vendors to consider having Seller Central login credentials.
You will need Amazon Seller Central if:
- You have observed a reduction in purchase orders over the past 6 to 12 months.
- There has been an increase in the waiting times between purchase orders
- You receive an annual revenue of less than 10 million
- You’ve received a request from Amazon to switch from Vendor Central
- As a vendor, you are losing vast profits
It is advisable that you get in touch with your vendor manager and get approval before moving to seller central. Doing this will help you maintain a cordial relationship with Amazon.
In addition, there are instances where switching to Amazon Seller Central might not be possible. The reasons for this could be that your switch might not be beneficial to you and Amazon in the short, and long term.
How to switch from Amazon Vendor to Seller Central
Now is the time to make that switch, but before you do that, you first have to be sure you are ready for it. The following questions will help you gauge your readiness to switch.
- What strengths do you have as a vendor that will be helpful to you as a seller?
- What resources do you have or can you acquire to help you meet your seller targets?
- Would you require an external agency to help you make the smooth switch?
Providing genuine answers for the questions above will help you gauge your readiness for the switch. To make your transition easy, take note of the following helpful points. Mind you, as a new seller, you might have to contend with a small profit margin, and a drop in your ASINs Ranking, but all of these are temporary, and with time you will be able to experience a profiting turnaround as long as you follow the points below.
Be ready for new processes
Use the same ASINs so you can maintain your listing, ranking, and reviews.
In addition, as a seller, you will handle the billing process. So you have to decide if you will do it yourself, hire an expert or a software.
Essential tasks to take care of
Timing is important when making a switch. Firstly, you have to plan when it is most convenient to switch to a seller. Secondly, it is vital to switch when your inventory is running low with Amazon. Doing both will make your transition smoother. Finally, you will have to run product testing to ensure they meet the demands of your customers.
This will revolve around product fulfilment. As a seller, you will have to choose whether you will be in charge of handling your fulfilment independently or have Amazon do it.
You can transfer some of your team from vendor to seller central with just a few tweaks here and there. In other words, you can retain the same team and let them manage the same tasks. Mind you, you have to pay close attention to customer relationship management. You have more control over how you communicate with customers as a seller than a vendor. Therefore, it is important you have the right hands handling everything that has to do with customer care.
How to switch from Amazon Vendor Central to Amazon Seller Central
- Get in touch with your vendor manager, and get an approval before you start the switching process
- Register a Seller Central account. Use the same ASINs so you can maintain your ranking and feedbacks
- Ensure all your products meet with the standards set by Amazon Seller Central
- Select the fulfilment option that works best with you and test it out to see the results. You should also have an inventory management system on ground. In addition, handle all tax issues on time.
- Although both Vendor and Seller Central have the same advertising tool, it is essential you move your entire advertising campaigns to Seller Central. Text things out by running a few campaigns to acquaint yourself with some of the crucial parts.
- Move your brand registry from Vendor to Seller
- Set up your inventory tracking system. Ensure your ASINs are within your Sellers Account Jurisdiction.