WareIQ welcomes new partners in the kitchenware and appliance category

Amazon Vendor Central: The Complete Guide to Benefits, Setup & Management

Amazon Vendor Central is a powerful platform designed for large businesses, manufacturers, and distributors to sell their products directly to Amazon as wholesale suppliers. Unlike Seller Central—where brands sell directly to customers—Vendor Central positions Amazon as the retailer, giving businesses access to enhanced credibility, free marketing support, and wider market reach.

Through Vendor Central, Amazon purchases inventory in bulk, takes ownership of the stock, and manages pricing, listing, and customer interactions. This model makes the platform especially beneficial for brands aiming for high-volume sales with minimal operational involvement.

In this guide, we’ll explore what Amazon Vendor Central is, how it works, who it’s best suited for, and the key advantages and challenges associated with becoming an Amazon Vendor.

What is Amazon Vendor Central

Amazon Vendor Central lets sellers upload their products to Amazon’s cloud. They are third-party sellers. It eliminates the need for sellers to store or ship their products physically, as Amazon handles all storage and shipping. Sellers are only responsible for fulfilling orders to Amazon. Becoming a vendor offers many benefits. These include lower overhead costs, simpler inventory management, and a faster sales process. However, sellers can only join Vendor Central if Amazon extends an invitation.

Upon acceptance, sellers must sign a Vendor Contract. It outlines many business terms. These terms include tax status, payment terms, return policies, and product liability. They also include other relevant details.

Amazon vendor central

Features of Amazon Vendor Central

Amazon Vendor Central offers a variety of functions as the primary interface for vendors to communicate with Amazon:

  • Vendors can receive purchase orders from Amazon.
  • Vendors can utilise a well-organised Amazon dashboard for order and information management.
  • Vendors can submit updated shipment information directly through orders.
  • Vendors can store their product information, including images, pricing adjustments, and other details.
  • Vendors can access the advertising console for product marketing, including Amazon Vine, A+ Content, and other vendor marketing tools.
  • Vendors can review invoices and remittances conveniently on the Vendor Central platform.
  • Vendors can access various beneficial reports for their business needs.

How to Become an Amazon Vendor

91.8% of vendors aim to expand their presence on Amazon this year. However, selling on Vendor Central isn’t a straightforward application process—it’s by invitation only. Amazon must invite you to join. That is why Amazon Vendor Central is not popular as much. But it is a great way to boost a brand’s presence and profits. Once you become an Amazon vendor, the value of your products also goes up. 

Essentially, in Amazon Vendor Central you supply Amazon with your products, and they handle the sales. You won’t actively manage the selling process. Instead, you’ll be paid monthly on wholesale terms as a supplier. While it sounds simple to profit without sales hassle, in reality, it poses challenges like low rates, hidden fees, and complex terms. You’ll also be responsible for displaying your items and setting wholesale prices.

  • Major brands and manufacturers.
  • Companies that sell their products directly to Amazon through wholesale transactions.
  • Vendors with a well-established brand presence and a wide product catalogue.
  • Companies can meet Amazon’s strict requirements for managing inventory, product data, and logistics.
  • Vendors that have a proven track record of selling through other major retailers.
  • Brands that align with Amazon’s current product category priorities.
  • Companies that can provide competitive wholesale pricing to Amazon.
  • Manufacturers that can handle large-volume purchase orders from Amazon.
  • Vendors with robust supply chain and distribution capabilities to support Amazon’s fulfilment needs.
  • Brands willing to grant Amazon certain marketing and pricing controls over their products.

Advantage of Becoming an Amazon Vendor

Amazon Vendor Central offers a seamless selling experience, comprehensive analytics, and tools to optimise performance and drive sales growth.

Getting Amazon Vendor Status

Amazon offers various platforms for product sales, including Advantage, Vendor Express, and Seller Central. With Amazon handling inventory, pricing, shipping, and returns, vendors enjoy the prestige of partnering with a globally renowned brand. For vendors, it opens up new business opportunities and sales channels, leading to increased conversions. 

Vendor Central Dashboard

The Vendor Central dashboard offers a full view of available products. It has quick links for adding products, checking shipments, and managing invoices.

The Business Advisor feature provides sales insights and recommendations to optimise performance.

Tabs and drop-down menus offer detailed analysis, including order management and returns tracking. Understanding mechanics of sales informs strategic decisions and helps optimise product reach.

Features of Merchandising Section

The merchandising section offers deeper insights. It recommends campaigns and promos tailored to product categories and seasonal trends. Features like Amazon Vine and A+ detail pages make products more visible and credible. They do this by using the opinions of trusted reviewers.

Get Business Analytics Reports

Vendor Central provides retail analytics, packaging, and operational performance. Retail analytics reports analyse sales metrics, demand forecasts, and product performance. It aids vendors in product selection and optimisation.

The graphs show the products sold by category. They help vendors find top-selling categories and products. The reports highlight areas to improve. They give insights to boost efficiency and solve problems early.

You may also like to read: Amazon’s New Pricing Impact on Indian E-commerce

Amazon Vendor Central Vs Amazon Seller Central – Key Differences

Choosing between Seller Central and Vendor Central is crucial, as both offer different levels of control, pricing, and operational involvement.

FeatureAmazon Vendor CentralAmazon Seller Central
Selling ModelWholesale model where vendors sell products in bulk to Amazon, which then resells them to customers.Retail marketplace model where sellers list and sell products directly to Amazon customers.
Inventory OwnershipAmazon owns the inventory after purchasing it from vendors.Sellers retain ownership of inventory until it is sold.
Product PricingAmazon controls the final retail price.Sellers set and manage their own product prices.
Product ListingAmazon creates and manages listings for vendor products.Sellers create, optimize, and maintain their own product listings.
Order FulfilmentFulfilled by Amazon or Vendor (SFP). Vendors send stock to Amazon (FBA), or ship orders directly to customers (SFP).Sellers use FBA or FBM (self-fulfilment). With FBA, Amazon handles storage, packing, and shipping.
Customer ServiceAmazon manages all customer service and returns for vendor products.Amazon handles customer service for FBA orders; for FBM, sellers manage customer queries and issues.
Product ReturnsHandled entirely by Amazon.Sellers manage returns unless the order is fulfilled by Amazon.
Payment TermsVendors receive payments on net terms (30, 60, or 90 days) after Amazon confirms shipment.Sellers are paid every 7–14 days, minus Amazon fees.
Entry RequirementsInvitation-only; based on brand reputation, product quality, and demand potential.Open to individuals and businesses without an invitation.
Selling FeesNo direct selling fees charged by Amazon.Sellers pay referral fees, closing fees, and other category-specific charges.
Brand ControlLimited control over pricing, content, and marketing.High brand control with full access to listing optimization and advertising tools.

Challenges in Amazon Vendor Central

Though Amazon vendor central is a boon for businesses to grow, there are many challenges as of now. By handlin these challenges, vendor central becomes more vendor-friendly.

No Room for Cost Increases: Amazon doesn’t approve requests to raise product costs, which affects margin protection.

Retail Price Protection Issues: Amazon can adjust prices without consent, violating MAP policies and declining pricing change requests.

Excessive Chargebacks: Vendor Central imposes confusing chargebacks, which impact margins with charges for factors outside vendors’ control.

Lack of Brand Control: Brands experience limited control over marketing, advertising, and brand consistency. Co-op fees offer minimal visibility on advertising spend.

Lack of Communication: Difficulty in contacting Amazon Seller Support, especially without access to a Vendor Manager is the number #1 challenge for 1P vendors.

Difficult to Negotiate: More than 64.5% of surveyed vendors describe their trade negotiations with Amazon as difficult, time-consuming, and inefficient.

Related read: How to File a SAFE-T Claim on Amazon?

Amazon Vendor Central Management Services

Efficient management of your Amazon Vendor Central account can boost sales, save time, and ensure smooth operations. Key services include:

  • Inventory Management: Optimize stock levels to prevent stockouts and overstocking.
  • Product Listing Optimization: Improve product content and images for better visibility.
  • Pricing Strategy: Manage competitive pricing while complying with Amazon rules.
  • Order Fulfillment Support: Ensure timely shipments and smooth delivery to Amazon.
  • Compliance Monitoring: Maintain adherence to Amazon policies and guidelines.
  • Performance Analytics: Track sales and operational metrics to identify growth opportunities.

How WareIQ Helps eCommerce Brands Scale Seamlessly

WareIQ is a Y-Combinator–backed, full-stack eCommerce fulfillment platform that empowers brands to manage, optimize, and scale their operations across D2C, marketplaces, quick commerce, and B2B channels.

What WareIQ Offers

Nationwide Fulfillment Network
Pan-India network of Seller Flex & F-Assured–compliant fulfillment centers across 12+ cities, supported by last-mile delivery partners covering 27,000+ pin codes.

Multi-Channel Fulfillment Platform
Plug-and-play integrations with major marketplaces (Amazon, Flipkart, Myntra, Nykaa), D2C platforms (Shopify, Magento, WooCommerce), WMS, and ERPs to streamline fulfillment across distributors, offline stores, and eCommerce channels—with built-in analytics for performance tracking.

Inventory LogIQ
AI-driven multi-channel inventory planning solution designed to reduce stockouts, optimize forecasting, and automate inventory replenishment.

Tech-Enabled Returns QC
Advanced returns quality-checking system that captures and stores HD media proof of damaged or missing returned products, helping eliminate marketplace claims rejections.

End-to-End Seller Enablement
Comprehensive seller support including dedicated account management, APOB/PPOB setups, GST registration assistance, NDR & COD verification, and more.

WareIQ Shipping

WareIQ’s smart shipping solution helps eCommerce brands minimize cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offer prompt support for handling urgent client escalations, ensuring smooth operations at all times.

Our solution offers the following capabilities:

  • Multi-carrier engine enabling fast deliveries across 24,000+ pin codes
  • Control Tower & automated workflows to minimize NDRs & RTOs
  • Same/Next-day delivery courier options
  • Seamless Integration with your WMS, ERPs and Storefronts
  • Shipping Badges to display precise Estimated Delivery Dates (EDD)
  • Custom branded tracking pages and notifications to enhance customer experience

Conclusion

Amazon Vendor Central is a beneficial platform for businesses to sell their products to Amazon in bulk. It simplifies the process for manufacturers and distributors, allowing them to reach a vast customer base. By understanding Amazon Vendor Central, businesses can maximise their sales on the platform.

Explore –
Amazon Order Fulfillment With WareIQ
Amazon FBA Preparation Services
Fastest Delivery with Amazon Shipping and WareIQ

FAQs

What is Amazon Vendor Central vs FBA?

Amazon Vendor Central is for brands and manufacturers selling wholesale to Amazon. At the same time, FBA (Fulfilment by Amazon) allows 3P sellers to store products in Amazon’s warehouses. Amazon then handles shipping and delivery. Vendor Central has less control but guarantees sales to Amazon. FBA provides more autonomy but involves competition in the marketplace.

Is GST required to sell on Amazon?

All vendors must give their GST number to Amazon when registering. If you sell only GST-exempt items, it might be optional. But if you start selling taxable goods, you must follow GST laws and provide your GST number to Amazon.

What is the frequency of payment on Amazon Vendor Central?

Amazon offers three payment options for Amazon Vendors: Net 30, Net 60, and Net 90. That is, vendors get paid after 30, 60, or 90 days. Since all these options involve waiting for payment, vendors might face cash-flow problems.

Who handles Amazon vendor central orders?

Amazon handles vendor-central orders. Vendors ship their inventory to Amazon’s fulfilment centres. Amazon manages the storage, picking, packing, and shipping of orders to customers. Amazon also provides customer service for these vendor-central orders. But, vendors are responsible for maintaining accurate inventory management and product data. Also, they have limited control over pricing, promotions, and the customer experience.

What is Amazon Vendor Central management and why is it important for businesses?

Amazon Vendor Central management refers to the process of handling your wholesale account with Amazon, including inventory supply, product listings, pricing, order fulfillment, and performance tracking. Effective management ensures timely shipments, compliance with Amazon policies, optimized product visibility, and maximized sales and profitability for vendors.

What does it mean to be an Amazon FBA seller?

An Amazon FBA seller uses Amazon’s Fulfillment by Amazon (FBA) service to store, pack, and ship products. FBA sellers benefit from faster delivery, Prime eligibility, and Amazon handling customer service and returns, allowing them to focus on growing their business.

How does Amazon Vendor Central use the information from the product catalog to help with business operations?

Amazon Vendor Central leverages product catalog information—such as descriptions, SKUs, pricing, and inventory levels—to streamline ordering, manage inventory, and create accurate listings on Amazon’s marketplace. This data helps Amazon forecast demand, optimize stock replenishment, ensure proper product display, and improve overall sales performance for vendors.

How does Amazon work?

Amazon is an online marketplace where sellers and vendors list products for customers to purchase. It handles order processing, payment, and, for services like FBA, storage, packing, shipping, and customer service, allowing businesses to reach a wide audience efficiently.