Vendor Central Or Seller Central: Which Path Builds The Right Future?

For brands that have already received an invitation to Vendor Central, or those managing an existing Vendor relationship, the primary question is not whether to be on Vendor or Seller Central. Instead, the focus must shift to determining which route offers long-term sustainability for the product portfolio and the entity’s strategic objectives. Platform functionalities do not drive this decision. Rather, it hinges on financial viability, the preservation of brand equity, and suitable operational alignment.

Vendor Central: Scale At Speed

The Vendor model is a strong fit when Amazon’s retail approach aligns with the product. For instance, when dealing with large, bulky, or low Average Selling Price (ASP) items, Fulfilment by Amazon (FBA) fees within the Seller model can quickly diminish profit margins. In such scenarios, the Vendor model is frequently the more sensible option. The explanation is because Amazon assumes the fulfilment risk, handles high-volume stock movement, and boosts product visibility through its own retail promotions. Nevertheless, this approach requires giving up some control over pricing, brand presentation, and commercial terms.

Seller Central: Control And Equity

The Seller model is often the stronger choice when Average Selling Prices (ASPs) are higher, products are relatively light to ship, and the profit margin can easily absorb Amazon’s referral and FBA fees. In categories such as beauty, wellness, and premium consumer goods, Seller offers the necessary control to safeguard a brand’s equity and ensure advertising expenditure directly contributes to profitability. However, the key difficulty lies on the operational side. Responsibility for fulfilment, compliance, and catalogue management rests with the brand itself, which necessitates a certain level of internal resources and capability.

Hybrid: A Practical Middle Ground

Many established brands opt for a hybrid model. Specifically, the Vendor model is retained for SKUs where scale and distribution efficiency are key, which typically includes high-volume or bulky lines. In contrast, the Seller model is used for flagship SKUs or premium ranges, where maintaining control and brand equity is essential. This strategic balance enables organisations to protect their margins and brand presentation on pivotal products while simultaneously capitalising on Amazon’s retail strength, where it proves most beneficial.

The Strategic Questions To Ask

Rather than focusing on which platform has the better features, brands should ask:

Do FBA fees make Seller unviable for this product?

Is the ASP high enough to sustain advertising and promotional investment on Seller?

Will giving up pricing control on Vendor damage long-term equity?

Should different SKUs follow different routes?

At Market Rocket, the team collaborates with brands to evaluate these trade-offs at the SKU and category level. Therefore, the optimal decision is rarely one-size-fits-all; instead, it involves aligning the route to market with the product economics and the brand’s wider commercial strategy.

Want to see your Amazon performance skyrocket?  Book a call with our team or email us at amazon@marketrocket.co.uk to take your brand to the next level.