Setting your prices, tracking your data and easy handling: Top reasons to choose the Seller option on Amazon
If you are a brand and you wish to sell on Amazon, you have three options: sell to Amazon (the Vendor or 1P option), sell on Amazon (the Seller or 2P option), or find a partner to sell for you on Amazon (the 3P option).
Each option has its pros and cons, but here’s why you might want to sell on Amazon as a Seller.
What is the Seller program?
The Seller program is open to all companies — brand owners, distributors or retailers — who wish to sell products on the Amazon marketplace, competing with other sellers, and even with Amazon itself.
On Amazon there is only one page per product where all sellers compete on price — not one page per offer. Amazon regroups all offers and decides who will “own the buybox” (in other words, who will be the one selling).
When you are a Seller, you have the choice of letting Amazon do the delivery to end consumers. Called the ‘Fulfilment by Amazon’ or FBA program, this requires you to leave your stock with Amazon, so it can deliver your products within one day and with free delivery to its millions of Prime subscribers. This is obviously the best solution.
The second option is for you to deliver directly to end consumers — the Fulfilled by Merchant (FBM) program. It is possible to become Prime eligible with FBM, but you need to have flawless one-day delivery, which can be an issue.
Why become a Seller?
In the past, brands were Vendors and distributors/retailers were Sellers. But in recent years Amazon has been giving some of the benefits from the Vendor program — such as A+ or Enhanced Brand Content, and the Vine testing program — to the Seller program too, for brands that are registered on Amazon.
In some cases Amazon even makes it impossible to become a Vendor, particularly for smaller brands — so some companies find their only option is the Seller program.