Vendor Central is Amazon's first-party (1P) selling model. Instead of listing products and selling directly to shoppers (as in Seller Central), a Vendor Central brand sells inventory wholesale to Amazon, and Amazon then resells to end customers.
Formula in practice: Brand ships 1,000 units to Amazon FC → Amazon pays wholesale invoice → Amazon sets retail price and sells to customers.
Vendor Central vs. Seller Central
| Vendor Central (1P) | Seller Central (3P) | |
|---|---|---|
| Access | Invite-only | Open to all |
| Who sells to customer | Amazon | The seller |
| Pricing control | Limited (Amazon sets retail) | Full |
| Margin | Lower (wholesale) | Higher |
| Prime eligibility | Automatic | Via FBA or SFP |
| A+ Content | Yes | Yes (Brand Registry) |
Key Vendor Central Concepts
Purchase Orders (POs): Amazon raises POs when stock runs low. Fulfillment rate (confirmed units ÷ ordered units) is tracked; poor fill rates can cost chargebacks.
Chargebacks: Amazon levies financial penalties for packaging errors, early/late shipments, or PO compliance issues. These can erode margin significantly.
Net PPM (Net Pure Product Margin): Amazon's internal metric for vendor profitability. Vendors with negative Net PPM may receive price pressure or delistings.
Vendor-funded coupons / AVN: During Annual Vendor Negotiations, Amazon requests marketing co-op funds, freight allowances, and damage allowances as percentages of revenue.
Should You Move from Seller to Vendor Central?
Vendor Central makes sense for established brands with predictable volume and negotiating leverage. Seller Central offers more control and better margin for most SMBs. Hybrid models (1P for core SKUs, 3P for tail SKUs) are increasingly common.