Amazon Vendor Central vs. Seller Central: Which Is Right for Your Brand?

One of the most consequential decisions a brand makes on Amazon is whether to sell through Vendor Central or Seller Central. The two models are fundamentally different in who owns the customer transaction, who controls pricing, how you get paid, and how much control you have over your brand's presence on the platform.

Many brands end up on Vendor Central by default — Amazon invited them, it seemed like the "official" way to sell, and they accepted without fully understanding the trade-offs. Others start on Seller Central and wonder if moving to Vendor Central would unlock more growth. The reality is more nuanced than "one is better than the other." The right model depends on your brand's size, margins, operational capacity, and strategic priorities.

What Is Amazon Vendor Central?

Vendor Central is Amazon's first-party (1P) selling model. In this model, Amazon is your customer. You sell your products wholesale to Amazon, and Amazon resells them to consumers on Amazon.com. The product listing says "Ships from and sold by Amazon.com."

Here's how it works in practice: Amazon places purchase orders (POs) with your brand at wholesale pricing. You ship the products to Amazon's fulfillment centers. Amazon takes ownership of the inventory. Amazon sets the retail price, manages the listing, handles customer service, and fulfills orders. You receive payment from Amazon on net terms (typically Net 30, 60, or 90 days).

Vendor Central is an invitation-only program. You can't sign up for it yourself — Amazon's retail team identifies brands they want to sell and extends an invitation. Historically, Vendor Central was seen as the more prestigious option because it meant Amazon itself was choosing to carry your products.

What Is Amazon Seller Central?

Seller Central is Amazon's third-party (3P) selling model. In this model, you sell directly to consumers through Amazon's marketplace. The product listing says "Ships from Amazon, sold by [Your Brand Name]" if you use FBA, or "Ships from and sold by [Your Brand Name]" if you self-fulfill.

Here's how it works: you create your product listings, set your own retail prices, and manage your own inventory. When a customer places an order, you fulfill it — either through FBA (where Amazon stores and ships your products) or through your own fulfillment operation. You receive payment from the customer (minus Amazon's fees) approximately every two weeks.

Seller Central is open to anyone. You sign up for a Professional Selling account ($39.99/month), create your listings, and start selling. There's no invitation required, and you maintain full control over your pricing, inventory, and brand presentation.

Key Differences Between Vendor Central and Seller Central

The differences between the two models affect nearly every aspect of how you operate on Amazon.

Pricing control is one of the biggest differences. On Vendor Central, Amazon sets the retail price. You negotiate a wholesale cost, and Amazon decides what the consumer pays. Amazon's pricing algorithm may drop your product's price below what you'd choose — sometimes below MAP (Minimum Advertised Price) — which can create channel conflict with your other retail partners. On Seller Central, you set and control the retail price entirely.

Margins work differently in each model. On Vendor Central, your margin is the difference between your cost of goods and the wholesale price Amazon pays you. Amazon typically negotiates aggressively on cost and may request annual cost reductions, chargebacks, and marketing allowances that erode your margins over time. On Seller Central, your margin is the retail price minus your product cost, Amazon's referral fee, and fulfillment costs (FBA fees or your own shipping costs). Most brands find that Seller Central delivers better net margins because you're capturing the full retail margin minus fees, rather than selling at wholesale.

Payment terms are significantly different. Vendor Central typically operates on Net 60 or Net 90 terms, meaning you might not receive payment for your products for two to three months after shipping them to Amazon. This creates cash flow challenges, especially for brands with high inventory costs. Seller Central pays approximately every two weeks, giving you much faster access to your revenue.

Inventory control varies between models. On Vendor Central, Amazon decides how much to order and when. If Amazon's forecasting underestimates demand, your products go out of stock and you can't do anything about it until Amazon places another PO. On Seller Central, you control your own inventory levels. You decide how much to send to FBA and when, giving you the ability to prevent stockouts proactively.

Content and listing control differs significantly. Vendor Central gives you access to A+ Content (formerly Enhanced Brand Content) and the ability to create brand-level content. However, Amazon can make changes to your product titles, descriptions, and images without your approval. On Seller Central with Brand Registry, you have stronger content control — you can create and lock down your listing content, use A+ Content, build a Brand Store, and access Amazon's full suite of brand tools.

Advertising capabilities have largely converged. Both Vendor Central and Seller Central now have access to Sponsored Products, Sponsored Brands, and Sponsored Display. Vendor Central historically had exclusive access to certain advertising features, but Amazon has steadily made most advertising tools available to both platforms. Amazon DSP is available to both as well, either directly or through an agency.

The Case for Vendor Central

Despite its limitations, Vendor Central has genuine advantages for certain brands.

The "Ships from and sold by Amazon" badge carries consumer trust. Some shoppers specifically look for products sold by Amazon, especially for higher-priced items. The Amazon-fulfilled trust signal can improve conversion in certain categories.

Simplified operations appeal to brands without dedicated eCommerce teams. Amazon handles pricing, fulfillment, customer service, and returns. Your operations team focuses on filling purchase orders rather than managing a complex Seller Central account.

Amazon Subscribe & Save and certain retail programs are easier to access through Vendor Central. If recurring revenue through subscription is important for your product category, Vendor Central may offer advantages.

Retail partnerships and relationships can be valuable. Being an Amazon vendor means you have a direct relationship with Amazon's retail team, which can be beneficial for product launches, deal placements, and category-level initiatives.

The Case for Seller Central

For most brands — especially established brands looking to maximize profitability and control — Seller Central is the stronger model.

Higher margins are the most compelling advantage. By selling directly to the consumer at retail price (minus fees), you capture significantly more revenue per unit than selling wholesale to Amazon. For many brands, the margin difference between Vendor Central and Seller Central is 20-40 percentage points.

Pricing control protects your brand and your relationships with other retailers. When Amazon undercuts your MAP on Vendor Central, it can damage your relationships with brick-and-mortar retailers, your own DTC channel, and other marketplace partners. Seller Central lets you maintain consistent pricing across channels.

Inventory control means fewer stockouts. You decide when and how much inventory to send to FBA. If demand spikes, you can air-ship additional inventory. On Vendor Central, you're at the mercy of Amazon's PO schedule.

Better data and analytics are available on Seller Central. You get access to granular customer data, search term reports, and business analytics that Vendor Central doesn't provide. This data is invaluable for making informed decisions about advertising, inventory, and product development.

Full brand tool access through Brand Registry gives you control over your listings, A+ Content, Brand Store, Amazon Posts, Brand Tailored Promotions, and brand protection tools. While Vendor Central offers some of these, Seller Central with Brand Registry provides the most comprehensive brand management toolkit.

Faster payment improves cash flow. Getting paid every two weeks instead of waiting 60-90 days makes a meaningful difference for business operations, inventory purchasing, and growth investment.

The Vendor Central to Seller Central Transition

Many brands that started on Vendor Central are now transitioning to Seller Central — and this migration is one of the most common and impactful strategic moves we help brands execute.

The transition requires careful planning because you need to maintain sales continuity, preserve organic rankings, and avoid the "dead zone" where your Vendor Central listing is winding down but your Seller Central listing isn't fully ramped up.

Key steps in the transition include setting up your Seller Central account and Brand Registry, creating or claiming your product listings on the Seller Central side, building FBA inventory while coordinating the wind-down of Vendor Central POs, transferring advertising campaigns from Vendor to Seller, migrating A+ Content and Brand Store assets, and monitoring Buy Box ownership throughout the transition.

The biggest risk is losing the Buy Box during the transition period. If both your Vendor Central and Seller Central offers are live simultaneously, they compete with each other. If Amazon's Vendor Central price is lower than your Seller Central price, Amazon's offer wins the Buy Box and you're back to square one. The transition needs to be timed and coordinated carefully.

Running Both Models Simultaneously

Some brands operate on both Vendor Central and Seller Central — a hybrid approach. They might keep certain high-volume products on Vendor Central where Amazon's demand is consistent and use Seller Central for new launches, niche products, or items where margin control is critical.

The hybrid model can work, but it adds operational complexity. You're managing two separate Amazon accounts, two sets of inventory systems, and potentially competing against yourself for the Buy Box on some products. For brands with the operational capacity to manage both, it can be an effective strategy. For most, simplifying to one model — usually Seller Central — is the better long-term approach.

Which Model Is Right for Your Brand?

Choose Vendor Central if your brand lacks the operational capacity to manage an Amazon Seller account, your products are high-volume commodities where wholesale distribution is your standard model, you have a strong relationship with Amazon's retail team that provides strategic value, and you're comfortable with Amazon controlling your pricing and inventory ordering.

Choose Seller Central if you want to maximize margins and profitability, pricing control and brand protection are priorities, you want full access to customer data and brand management tools, you have (or can build) the operational capacity to manage FBA inventory and your Seller Central account, and faster payment terms would benefit your cash flow.

For most established brands, Seller Central is the right answer. The margin advantage alone is usually decisive, and the additional control over pricing, inventory, and brand presentation makes it the better platform for long-term brand building on Amazon.

How Lab 916 Helps Brands Navigate the Decision

Whether you're evaluating which model is right for your brand, considering a transition from Vendor Central to Seller Central, or running a hybrid model and want to optimize it, this is one of the highest-impact strategic decisions you can make on Amazon.

At Lab 916, we've managed Vendor-to-Seller transitions for established brands and understand the nuances — from Buy Box strategy during the transition to advertising migration to inventory coordination. We also help brands that are already on Seller Central maximize the advantages of the platform.

If you're on Vendor Central and wondering whether a transition would improve your margins and control, or if you're on Seller Central and want to make sure you're getting the most out of it, request a free audit and we'll model the opportunity for your specific brand.