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How Do I Become A Third-party Vendor On Amazon?

How Do I Become A Third-party Vendor On Amazon
Written by Ramit

Amazon’s business is continuously growing in demand as more and more sellers and buyers are attracted towards Amazon with each passing day. While buying on Amazon is quite a facilitating experience, selling doesn’t come that much easy. What that means is, it involves a lot of hard work from listing,  Amazon listing optimization, cataloging, imaging to taking the right Amazon account management services, it’s a whole lot of process. That not only demands a lot of hard work but also costs a lot of money.

But do you ever wonder how easy it would be if you don’t go through all the processes and deal with only one customer instead of multiple customers? Yes, it is possible if you are an Amazon vendor. Now you must be wondering,  how do I become a third-party vendor on Amazon?

Well, stop wondering instead let’s dig deep into finding all the details related to the Amazon vendor program.

Amazon Vendor:

Becoming an Amazon vendor means you deal with only one customer that is Amazon. What it means is Amazon buys your products in bulk from you and will resell it on its own. All this is done under Amazon’s Vendor Central.

Amazon Vendor Central:

Amazon vendor central is a marketplace for Amazon’s vendors where they sell all their products to Amazon for reselling purposes. But getting registered for Amazon vendor central doesn’t happen without Amazon inviting you to become a vendor. This happens when you have a good reputation and visibility as a seller. That’s why most sellers work to enhance their product’s demand and visibility to get an Amazon vendor invite.

Two Ways To Become A third-Party Vendor On Amazon:

  1. Work For An Amazon’s Invite:

As you know, getting registered for vendor central doesn’t happen without amazon’s invite. And Amazon invites brands to become their vendor who has an amazingly good reputation, pricing, and visibility. So What you can do is,  set your brand up to Amazon’s guidelines, work on providing quality, and do focus on Amazon listing optimization. And for optimization, you may need to take some third-party services. But that’s no worry for you because urtasker is the best answer to all such services. Take their services and it will help you drive more traffic and increase brand visibility.

  1. Apply To become A Third-Party Vendor:

If you are already having a good reputation and visibility but have not yet received Amazon’s vendor invite. You can request it from Amazon. But Whether Amazon grants your demand or not is not guaranteed.  

Either way, if you want to be an Amazon vendor, develop your brand to the level Amazon can’t help but send you an invite.

7 Things To Do If You Receive An Invite To Become A Third-Party Vendor On Amazon?

When you receive an invite to become a third-party vendor on Amazon, you have two options.

  1. You can either Accept it or Decline it. Accepting means, you would have to accept the terms and conditions of Amazon to access Vendor Central.
  2. After accepting, select the items from your stock for Amazon to make a purchase order.
  3. For this, you will see an “Items” tab. Put all the details and prices in it. 
  4. Wait for Amazon’s purchasing order that is generated once a week automatically considering the demand.
  5. Deliver the products to Amazon’s specified warehouse as soon as you get the purchase order.
  6. Keep a close look at the terms of shipment because any error or delay will charge you fine.
  7. After you are done with all this, be ready for Amazon’s payment that will come within 2-3 months ( based on your payment plan).

Are There Any Pros And Cons Of Becoming A Third-Party Vendor On Amazon?

Yes, like any other thing on earth, becoming a vendor on Amazon also comes with pros and cons. Some of them are listed below.

Pros Of Becoming A Vendor On Amazon:

  • Easy And Simple Business Model:

Becoming a vendor is like doing a partnership with Amazon that has its own perks. That means all you have to do is fulfill the orders and billing. Everything else like lost inventory, tax liabilities, customer returns, and many other organizational matters related to sales will be taken care of by Amazon. However, if you don’t fulfill the orders and billing in time, or you will be chargeback by Amazon.

  • Increased Customer Trust:

If you are an Amazon vendor, your items would be labeled as “Ships from and sold by Amazon.com”. This way they will know you are chosen and trusted by Amazon. This will increase their confidence and trust in you as they trust Amazon’s suggestions. This will further facilitate you to drive more sales. 

  • Marketing Services And Ability To Participate In Promotional Programs:

When you are registered as a vendor on Amazon. Amazon provides marketing services that help them run ad campaigns. This will further drive conversions. Although this option is available to both sellers and vendors. But the tools provided to vendors are more powerful. Moreover, Vendors are provided offers to participate in promotional programs that are Amazon Vine, Subscribe and Save, etc.

Cons Of Becoming A Vendor On Amazon:

  • Loss Of Control Over Prices:

If you are a vendor on Amazon, it will decide your retail prices according to its internal algorithm and can change them whenever it wants. This can decrease your vendor’s margin. But FBA and FBM sellers can set their prices themselves.

  • Strict Shipping Requirements:

You should streamline your inventory and be very efficient in fulfilling orders. However if you don’t fill them as per Amazon’s terms, you will be subject to chargebacks. Or even if you naturally fail to fulfill, you will be fined for it.

  • No Control Over Brand’s Presentation:

When you are an Amazon vendor, you have less or no control over the pricing process. Also, the vendor has no control over how the brand is represented. Moreover, Amazon uses standard brown boxes for the shipment of vendors. This ultimately vanishes your brand’s name from making its own appearance.

Conclusion:

Becoming a vendor on Amazon all depends on having a good reputation as a seller, good visibility, reviews, and pricing. You can enhance all these factors by putting in conscious hard work and by taking Amazon account management services.  However, always be very mindful before accepting the invite as even advantages don’t come without disadvantages. So if you are all ok with disadvantages and ready to avail the advantages, just hit Accept.

About the author

Ramit

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