Curious about selling on the Amazon Marketplace? When you are busy shopping on Amazon, have you ever noticed that the two separate parts of Amazon operate as one entity: Amazon.com and Amazon Marketplace. In this article, we will explain in detail the differences between the two parts.
While Amazon and Amazon Marketplace differences might seem trivial, especially in consumers’ eyes, they work very differently, and the two generate a lot of revenue each year.
How do Amazon marketplaces work?
Amazon.com is the leading website that specializes in selling everything from motor vehicle car seats to makeup to clothes. When you order on Amazon.com, you purchase directly from Amazon’s entire inventory of products and individual sellers. Amazon Marketplace is the marketplace for third-party resellers integrated into the same platform.
It offers clients a wider choice of products from a multitude of external sellers and allows you to compare the price keeping the platform highly competitive. Since Amazon Marketplace is highly integrated with Amazon.com, many clients don’t fail to notice that they’re purchasing from third-party sellers.
Unlike the Amazon Marketplace, anything a retailer sells directly from the same name domain is brand new and wholly-owned by Amazon. Therefore, when you buy something now from Amazon.com, Amazon enjoys all the profits; when you buy something from the Amazon Marketplace, third-party retailers and amazon.com share in the profits.
Amazon.com is very strict about who is allowed to sell on the Amazon Marketplace. Only certain countries can participate, and these sellers must have registered financial accounts or those jurisdictions.
Amazon marketplace and Amazon.com Main contrast
On Amazon.com you can only sell new items and the company retains all proceeds from sales. While with Amazon marketplace, resellers are permitted to sell both new and used products with a percentage going to Amazon.
Amazon Selling Programs
There are two distinctive programs for people who intend to begin selling on Amazon.
Amazon Vendor Central
Amazon Vendor Central is an invitation-only program and is generally only available to wholesalers and merchants. Manufacturers or merchants market their products at wholesale rates directly to Amazon at wholesale rates, then the merchandise is sold directly on Amazon.com. Amazon retains ownership of the merchandise, so you should not do this with merchandise sold in the Marketplace by third-party retailers on Amazon..
Selling your products to Amazon through Amazon Vendor Central is an easy way for wholesalers and manufacturers to wholesale stock, without having to do additional tasks like logistics and marketing
Amazon Seller Central
For regular resellers , Amazon Seller Central is the solution. Over half of total sales on Amazon is from third-party dealers who are registered via Seller Central, so you’re in good hands if you ever feel the need to follow this route.
Dealers on Amazon Seller Central market merchandise under their own stores or brand on Amazon Marketplace and retain ownership of stock, not like those on Amazon Vendor Central.
Retailers are allowed to determine whether Amazon should handle the shipping and packaging of their merchandise from Amazon fulfillment centers or if they will do it by themselves. These options are known as Amazon Fulfilled (FBA) and Merchant Fulfilled (FBM), respectively.
Thinking of becoming an Amazon Marketplace store owner?
Putting up your own Amazon Marketplace store is an excellent career choice for any person who wants semi-passive income or unlimited earning potential.
To be successful, you will need to determine which selling method is the most profitable for the kind of merchandise you intend to sell and then budget accordingly. Start and don’t look back if you feel ready to begin your journey as an Amazon seller. All the best!
