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.
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.
Related terms
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