The difference between Amazon Vendor and Seller is who you sell to. As a Vendor you sell wholesale to Amazon, which buys the stock, sets the retail price and resells it as "sold and shipped by Amazon". As a Seller you sell directly to customers on the marketplace: you set price and content, pay fees and logistics, and keep the margin. In short, Vendor simplifies operations but gives up control; Seller takes more work but leaves the brand in charge of price, data and the customer relationship.
There is no answer that fits everyone. Here is how the two models work, what changes on margins and cash flow, when switching makes sense and how to do it without losing history and reviews, with the example of a brand we moved from Vendor to Seller.
How Amazon Vendor (1P) works
Vendor Central is the supplier portal of Amazon Retail, and access is normally by invitation only. Amazon sends purchase orders, you ship the goods to its warehouses and invoice. From there on Amazon is in charge: retail price, customer service, returns. Payments follow the agreed terms, often 60 or 90 days, net of chargebacks.
The relationship is governed by a commercial agreement renegotiated periodically. Besides the purchase price, it can include marketing contributions, damage allowances and freight allowances. On top of these come chargebacks for non-compliance: wrong labels, late deliveries, non-standard packaging. Added together, these items can shift your real margin considerably.
How Amazon Seller (3P) works
Seller Central is the portal for third-party sellers, open to anyone who meets the requirements. You sell directly to the end customer, choose the price, manage catalog and content. Amazon takes a referral fee that varies by category, plus the Professional plan subscription. For logistics you choose between FBA, where Amazon handles storage, shipping and returns for a fee, and FBM, where you ship yourself: the criteria are in our guide to FBA or FBM. Proceeds are usually paid out every two weeks.
Control comes with responsibility: account health, inventory, policy compliance. A neglected account pays for it by losing the Buy Box and, in the worst cases, with suspension.
The differences that matter, point by point
- Retail price: as a Vendor Amazon sets it, and may lower it to match other online stores; as a Seller you set it
- Margin: as a Vendor you collect the purchase price minus contributions and chargebacks; as a Seller you collect the full price minus fees, logistics and advertising
- Cash flow: as a Vendor you wait for the agreed payment terms; as a Seller proceeds usually arrive every two weeks
- Operations: as a Vendor you manage orders and deliveries to Amazon; as a Seller you run the whole channel, from inventory to content, and customer service too if you do not use FBA
- Customer trust: as a Vendor the offer is sold and shipped by Amazon; as a Seller using FBA your products still get the Prime badge and Amazon's logistics
The risk few people consider: Amazon can stop ordering
As a Vendor your channel lives on Amazon's orders, and Amazon can reduce or stop them. When a product does not earn it enough, it stops restocking it. And in recent years, according to trade press, it has repeatedly ended Vendor relationships with smaller suppliers, the latest known wave at the end of 2024, steering them toward Seller Central. As early as 2023, in Europe, terminations were explained by a preference for buying directly from brands: if you reach Amazon through a wholesaler, you depend on a middleman Amazon itself wants to skip.
When staying a Vendor makes sense
Vendor remains a sensible choice in some cases: significant volumes and negotiating power that holds up against Amazon, no in-house structure to run a direct channel, a distribution model already built on large retail where Amazon is one customer among others. If the relationship is stable and the margin holds after contributions and chargebacks, there is no reason to switch on principle.
When switching to Seller makes sense
- The price set by Amazon creates conflicts with your other channels: retailers, distributors, your own e-commerce
- Contributions and chargebacks in the agreement erode your margin year after year
- Amazon orders irregularly and your products are often out of stock
- You sell through a wholesaler and do not control listings, Brand Registry or EAN codes
- You want to expand the catalog or move into other European marketplaces on your own timeline
- You have received notice that your Vendor relationship is being ended or reduced
Can you use both?
Yes, many brands run a hybrid model: some products in Vendor, others in Seller. It works when the split is clean, for example high-volume products to Amazon Retail and new or niche products in Seller. If instead both you and Amazon sell the same product, you compete for the same Buy Box, and the lowest price usually wins it: often Amazon's.
How to move from Vendor to Seller without losing your history: the Nutralabs case
Nutralabs, an Italian supplements company, sold on Amazon only as a Vendor through a wholesaler: ten products, no account of its own, Brand Registry and EAN codes held by the distributor. The path we followed is a good model for anyone making the same move:
- Take back the brand and the codes: transfer of the trademark to a Brand Registry in the brand's name and GS1 registration to obtain proprietary EANs
- Keep the same ASINs: the new EANs were applied to the existing listings, so sales history, reviews and rankings stayed with the brand
- Open Seller Central and move logistics to FBA: fast shipping and the Prime badge from day one
- Rebuild listings and content: Brand Store, A+ content, correct variations and attributes across the catalog
- Start advertising and monitoring: targeted campaigns and continuous reporting of unauthorized resellers
The result: annual Amazon revenue up 161% with advertising at 8-10% of revenue, Subscribe & Save subscribers up 725% and every unauthorized reseller removed from the listings.
The most delicate moment is the handover. The last Vendor orders and the first FBA stock need to be synchronized: if listings go out of stock even for a few weeks, organic ranking drops and rebuilding it costs time and ad spend.
If you are considering the switch, or have received a notice from Amazon about your Vendor relationship, let's talk: we review margins, catalog and ownership of brand and codes, and tell you whether and how to move. Our work on both models is described on the Seller and Vendor account management page.
Frequently asked questions
Can I move from Vendor to Seller at any time?
Yes: opening a Seller account does not require approval from the Vendor team. It is wise, though, to plan the wind-down of Vendor orders and to check first who owns the Brand Registry and the EAN codes, because without them you may be unable to manage your own listings.
Do I lose reviews and ranking when I change model?
No, as long as you keep selling on the same ASINs: reviews and history are tied to the listing, not to the selling model. What you can lose, if the transition is badly managed, is availability, and ranking along with it.
How do you become an Amazon Vendor?
Normally by invitation from Amazon Retail, extended to brands with significant volumes or a strong presence in other channels. There is no open application as there is for Seller Central.
For a new brand, is Vendor or Seller better?
Almost always Seller: Vendor invitations rarely reach brands starting from zero, and as a Seller you learn the channel, build reviews and keep control of the price. Vendor can be considered later, if Amazon proposes it.