Amazon Seller Vendor Hybrid – Defined
This blog defines Amazon Seller, Vendor and Hybrid Model comparison. How do they differ? What are the features? And why is there a Hybrid Model selling on Amazon? Understanding these models will help you define your selling structures for a successful eCommerce selling on the Amazon marketplace.
First of all, Amazon has 2 separate portals for vendor and seller. They are called Amazon Seller Central and Amazon Vendor Central:
Amazon Seller Central – This is the most common in selling on Amazon. Most start-ups use this platform to become Amazon seller. Anyone can sign-up as a seller and it is actually an easier option for setting up a business on Amazon. They are also known as “third party sellers” who list their products and sell them independently, direct to the end customer. Amazon seller has full control over their products and price. They can also sell product via FBM (Fulfilled by Merchant) or FBA (Fulfilled by Amazon)
Amazon Vendor Central – This is primarily intended for manufacturers and well-known brands and is thru Amazon invitation only. Although, you can also approach Amazon to become a vendor, provided you qualify to the criteria. As a manufacturer/distributor or wholesaler of your products, you transact to Amazon as a wholesaler. Product selling, marketing strategies are solely handled by the Amazon vendor team. Amazon gets the workload of the vendor and so does the profit margin.
Hybrid Model – A hybrid model is when an Amazon Vendor wants to become an Amazon seller as well. A vendor sells products to Amazon while selling the same product direct to the consumer as a seller.
The content below compares the 2 Amazon selling subscriptions – Vendor and Seller. You can notice that Hybrid is getting all the features of both.
To summarise, a hybrid model is the most advantageous selling approach as you have the flexibility to exercise and maximise both selling privileges on Amazon. While you supply products to Amazon as a Vendor – wholesaler, you do not need to wait for months before your products are made available on the Amazon catalogue since being a seller will give you the chance to list and sell your products anytime.
This is a bit complex, as the need for more resources and enough preparation is required especially for new sellers/vendors. But if you have a great team to work both on the vendor and seller central accounts, then you are doing good. Remember as a seller, you are obliged to monitor your account health, and maintain a good selling performance such as addressing customer complaints, inventory replenishment, shipping and issues, and dealing with the seller support team that will come out from time to time.