One of the first questions I get asked as an Amazon Consultant is, “Should I be on Vendor Central or Seller Central?”

It sounds like a simple technical question, but the answer fundamentally changes your business model, your cash flow, and your control over your brand destiny.

In my 10+ years of managing accounts, I have seen brands explode on Seller Central, and I have seen massive corporations get strangled by the red tape of Vendor Central.

The decision isn’t just about “1P vs 3P.” It’s about whether you want to be a Partner to Amazon or a Supplier for Amazon.

In this guide, I will break down the real-world differences, the hidden costs they don’t tell you about, and how to decide which platform is right for your growth stage.

At A Glance: The Scorecard

If you are a CEO or Founder looking for the bottom line, here is the high-level breakdown of how the two platforms compare on the metrics that actually matter to your business.

What is Amazon Seller Central (3P)?

Seller Central is the interface used by merchants to market and sell their products directly to Amazon’s customers. In this model, you are the retailer. You are a third-party (3P) seller.

You can choose to fulfill orders yourself (FBM) or use Fulfillment by Amazon (FBA), but crucially, you retain ownership of the inventory until the customer buys it.

Pros of Seller Central:

• Pricing Control: You set the retail price. This is critical for brands that need to enforce MAP (Minimum Advertised Price) policies or maintain brand equity.
• Higher Margins: Since you are selling at retail price rather than wholesale price, your gross margins per unit are typically higher, even after Amazon fees.
• Payment Speed: Amazon pays sellers every 14 days. This is significantly faster than the Net-60 or Net-90 terms often forced upon Vendors.
• Inventory Control: You decide what is in stock. You don’t have to wait for Amazon to issue a Purchase Order (PO) to send goods in.

Cons of Seller Central:

• Fees: Referral fees, FBA fees, and storage fees can add up if you don’t know your numbers.
• Sales History: You are responsible for generating your own sales velocity and reviews from scratch.

What is Amazon Vendor Central (1P)?

Vendor Central is the platform used by manufacturers and distributors. If you sell via Vendor Central, you are a first-party (1P) seller. You are selling to Amazon, not on Amazon.

Once Amazon issues a Purchase Order (PO) and you ship the goods, your job is largely done regarding that specific inventory. Amazon takes ownership, sets the price, and sells it to the customer. Your listing will say “Ships from and sold by Amazon.com.”

Pros of Vendor Central:

• Consumer Confidence: Seeing “Sold by Amazon” gives customers an immediate sense of trust and typically results in a slightly higher conversion rate.
• Volume: If Amazon decides to push your product, they can move massive volume via purchase orders.
• Simplified Logistics: You generally ship bulk orders to Amazon distribution centers rather than managing individual unit prep.

Cons of Vendor Central:

• Loss of Pricing Control: This is the biggest danger. Amazon’s algorithm will price match any lower price it finds on the web (Walmart, your own site, etc.). This can cause a “race to the bottom” that devalues your brand.
• Chargebacks: Vendor Central is notorious for issuing chargebacks (fines) for minor logistical errors, missing labels, or late shipments.
• Slow Payment: Net-60 or Net-90 payment terms are standard, which can strain cash flow for growing brands.
• “CRaP” List: If your product cannot be profitable for Amazon to sell (Can’t Realize a Profit), they will stop ordering it, effectively killing your sales channel overnight.

The Consultant’s Verdict: Which Should You Choose?

In the early days of Amazon, Vendor Central was the VIP club. It offered access to A+ Content (formerly EBC) and Amazon Marketing Services (AMS) that sellers didn’t have.

That has changed.

Today, Brand Registered sellers on Seller Central have access to almost every marketing tool that Vendors do, including A+ Content, Brand Stores, and Video Ads.

My Recommendation:

• Choose Seller Central if: You are a brand owner who cares about pricing control, profit margins, and cash flow. It allows you to be agile and protects your brand equity.
• Choose Vendor Central if: You are a massive manufacturer geared for high-volume wholesale logistics and do not have the internal team to manage customer service, individual returns, or direct-to-consumer sales mechanics.

The Advanced Strategy: The Hybrid Model

For my advanced clients, we often look at a Hybrid Model.

This involves keeping your core catalog on Vendor Central to maintain the “Sold by Amazon” trust, while launching new products, bundles, or exclusive SKUs on Seller Central.

This diversifies your risk. If Amazon stops issuing POs for a certain product on the Vendor side, you can immediately switch it to your Seller Central account to keep it in stock and ranking. It prevents Amazon from having total leverage over your business.

Frequently Asked Questions