Technology has transformed the way we do everything, and shopping is no exception. Gone are the days when we have to get out of our home, visit the nearest departmental store to purchase necessary items for daily use. With internet on your side, everything is at your fingertips these days. Just fire up the app, search for the product you are looking for and place the order to get it delivered at your doorstep. Convenient, is not it?
Amazon is at the forefront of this digital revolution which has transformed the way we shop. What once started as a small book selling company on 5 July 1994 turned into leading E-commerce store in the world two and half decades later. From its humble beginnings as a book seller to its E-commerce empire selling everything under the sun, Amazon’s story is fascinating to say the least.
You were so fascinated by Amazon that you decided to use it platform for selling your products. There are two options for it.
- You can directly sell to customers as a third-party vendor.
- You can sell as a wholesaler on Amazon as a first party vendor.
If you decide to become a third-party seller, you will have to sign up for an Amazon Seller Central account. In this article, we will tell you everything you need to know about Amazon Seller Central to help you increase your sales on Amazon.
What is Amazon Seller Central?
Amazon Seller Central is basically a platform that enables anyone to sell products directly to customers using Amazon’s E-commerce store. Sellers will have complete control over pricing and inventory of their products.
When it comes to shipping, sellers can choose one of the two options. They can either handle everything from shipping requirements, returns and customer service themselves or let Amazon handle it for them. If you are planning to choose the former, you will have to register under FBM (Fulfilled by Merchant). On the flip side, if you want Amazon to take care of shipping, you should choose FBA (Fulfilled by Amazon) option.
Keep in mind that if you are letting Amazon handle shipping for you then you will have to pay them for their services. Let’s look at advantages and disadvantages of Amazon seller central to give you a better idea about what to expect from Amazon’s platform.
Advantages of Amazon Seller Central
There are many advantages of using Amazon’s Seller Central platform. Some of them are as follows:
- Complete Control over Products
- Efficient Inventory Management
- Access to Analytics
Complete Control Over Products
If you are new to Amazon selling platform, it might seem like a daunting task to get your head around it. It’s steep learning curve makes things even more difficult for newcomers. For those who invest their time and money into it, it will pay you rich dividends in the form of giving you complete control of your products. From setting the right price to managing communications with customers, you can easily do it all with Amazon Seller Central.
Efficient Inventory Management
Inventory management can be a big pain in the neck for online sellers but with Amazon’s Seller Central that is not the case. Apart from letting you manage your own inventory; Amazon’s Seller Central efficient inventory management mechanism ensure that you have complete control over how many products you wish to sell. It will alert you when your inventory is running low.
Access to Analytics
When you sign up for Amazon Seller Central, you will get access to all the data. With real time analytics at your disposal, you can easily handle unhappy customers directly. Sellers can easily understand their request and fulfill their needs straightaway. You can control prices based on demand so increasing and decreasing prices for your products is a breeze.
Disadvantages of Amazon Seller Central
Here are some of the disadvantages of Amazon Seller Central.
Additional Fees
Irrespective of whether you handle shipping yourself or leave it on Amazon, you will have to be ready to pay associated fees. Depending on the items you are selling, you will have to pay for storing it and shipping logistics as well. If you choose FBA, there is a better chance that your product will sell due to Amazon Prime moniker but you will have to pay for everything from storage to fulfillment to commission. This might not be a big deal if you are selling larger and more expensive items but it will surely impact your margins if you are selling smaller, less expensive products.
Lower Potential Sales
Amazon needs no introduction when it comes to online shopping and is the leading online store. Selling products that has “ship from and sold by Amazon.com” written underneath the price and product description tends to fly off your online shelves. Customer trust Amazon which is why they prefer to buy items sold and shipped by Amazon. They know that even if something is wrong, Amazon is great at customer service and deal with the issue in an efficient manner. Amazon products rank higher, thus gets more clicks and sales. All this can not be said for products your business is selling and shipping, which results in mediocre sales.
Did this article helped you in knowing more about Amazon Seller Central? Feel free to share it with us in the comments section below.