eData4You
Amazon

Vendor Central

Amazon's invitation-only portal where brands sell wholesale to Amazon, which then sells to shoppers (first-party, or 1P, selling). In Seller Central (3P) you sell directly to shoppers and control price; in Vendor Central (1P) Amazon raises purchase orders, pays a wholesale invoice, sets the retail price and sells the stock itself.

ecommerce-glossary
CategoryAmazon
Related terms4
Terms indexed126
StatusDefinition ready

In practice

In Seller Central (3P) you sell directly to shoppers and control price; in Vendor Central (1P) Amazon raises purchase orders, pays a wholesale invoice, sets the retail price and sells the stock itself. Vendors are measured on fill rate, can face chargebacks for packaging or shipping errors, and negotiate terms such as marketing and freight allowances with Amazon each year.

A brand ships 1,000 units against an Amazon purchase order, is paid the wholesale price, and Amazon sets the retail price shoppers see.

Why it matters

The choice between 1P and 3P decides who controls pricing, how margin is split and how much operational compliance work the brand takes on.

Worth knowing

  • Vendor Central products are sold by Amazon and are automatically Prime-eligible.
  • Chargebacks for PO non-compliance can erode margin significantly if not managed.
  • Many brands run a hybrid: 1P for core high-volume SKUs, 3P for the long tail.
eData4You

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eData4You is a full-service ecommerce operations agency founded in 2008 and based in New Delhi, India.

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