In this post, our Director of Amazon, Shawn Green walks us through everything you need to know about Vendor Express.
Whether you’re just beginning to sell on Amazon or have an established presence on the platform, there’s still one option you may not be as familiar with: Vendor Express.
But don’t worry; after reading this guide, you will be.
Selling on Amazon isn’t exactly straightforward.
But with over 300 million users, it’s clearly the dominant force in the online marketplace.
And clearly, it’s one many manufacturers have familiarized themselves with.
Whether you’re just beginning to sell on Amazon or have an established presence on the platform, there’s still one option you may not be as familiar with: Vendor Express.
But don’t worry; after reading this guide, you will be.
We’re about to take you through the pros, cons, and how to’s in deciding if Vendor Express is the choice for you.
Introduction to Selling on Amazon
As previously stated, selling on Amazon comes with options.
Traditionally, sellers were presented with two ways to sell their product:
- Amazon Seller Central: The most common option and starting point for new sellers. Seller are charged a pay-as-you-go price, either per item or as a flat monthly fee. Sellers set their own prices and handle shipping and customer service (unless enrolled in Fulfillment by Amazon). Anyone can join, and It offers the most control but requires the most day-to-day involvement.
- Amazon Vendor Central: Using Vendor Central, vendors sell their products directly to Amazon. It’s by invite only, and typically only those that sell at a high volume are invited to join. Amazon orders items wholesale from the seller and ships items from their warehouses and handles all aspects of customer service.
Both come with their own set of pros and cons.
Many prefer Seller Central due to the ability to control price and receive timely payments every 7 to 14 days. Vendor Central’s payment terms are a bit murkier, and there are no shortage of complaints.
On the other hand, those that choose Vendor Central generally do so because it allows them to sell large quantities with the Amazon stamp of approval.
But many still look for something in between.
And that’s exactly where Amazon’s Vendor Express comes in.
What is Vendor Express?
Think of it as a pre-Vendor Central.
It functions similarly, but operates somewhere in the middle of Seller Central and Vendor Central.
Like Vendor Central, Vendor Express offers sellers a way to wholesale their products to Amazon without requiring an invitation first.
Also similar to Central, you will not be in control of the pricing of your items.
It does, however, come with its differences.
So How is Vendor Express Different From Vendor Central?
Yes, they’re similar. But the differences are key.
The first and most obvious is that Vendor Central is by invite only, whereas anyone can sign up to use Vendor Express.
Another difference and possible benefit of Vendor Express is that vendors are eligible to sign up for direct fulfillment by Amazon, meaning they have the option to ship directly to buyers rather than to the Amazon warehouse.
Those using Vendor Central do not have this option.
Also important to note is that when signing up for Vendor Express, Amazon will require a bit of a trial run.
Basically, you’ll provide Amazon with a free shipment of your product, which they will then sell. If it sells and Amazon is happy with it, they will continue to place bigger bulk orders with you.
Amazon will not pay vendors or return the product if it doesn’t sell.
Vendors are exempt from the trial period if they sign up for Central. Because Vendor Central invites are based on already-proven sales volumes, Amazon will automatically begin ordering in bulk.
Also keep in mind that while Vendor Central offers access to personalized support services, Vender Express users are limited.
The Pro’s of Vendor Express
First, the good news:
- It’s free to join; no invitation needed. For anyone interested in being a vendor but just beginning their partnership with Amazon, Vendor Express serves as a great introduction to Vendor Central. It offers many of the same features without having to wait for an invitation.
- Amazon handles the customer service. One of the bigger drawbacks of Seller Central is that all customer relations are up to you (unless you’re enrolled in Fulfillment by Amazon (FBA)). On the vendor side, customer service isn’t your concern. Amazon handles all shipping, customer complaints, returns and refunds. Not only does it spare you a headache, but it frees up your time to focus on production.
- Association with Amazon. All products will come with the “Sold by Amazon” seal of approval, making them more credible in many customer’s eyes.
- Orders are made in bulk. Rather than listing and selling items one at time a la Seller Central, Amazon will order directly from you in bulk, giving you guaranteed sales and a higher sales volume.
- Access to Amazon Marketing Service (AMS). The advanced Amazon Marketing Service allows brands access to better ads, optimization and Amazon’s “Sponsored Product” pages. Overall, the increased exposure is one of the better benefits available to brands who use Vendor Central or Vendor Express.
The Cons of Vendor Express
Of course, the platform comes with its cons as well.
- First up: You don’t set the price, Amazon does. Amazon will buy from you at a wholesale price that is generally non-negotiable. Amazon will initially ask vendors for their selling price (MSRP), and will respond with what they expect to pay. Unsurprisingly, the end price is usually Amazon’s. And because Amazon likes to secure the lowest pricing on the web, the prices of your products are subject to change.
- Amazon will require a free shipment of your product. As stated above, those that enroll in Vendor Express will be asked to send a free trial shipment of their product to test the market. Amazon notes that it generally will not require more than $150 worth of stock. They also include that if you are not able to send them the free shipment, the product should be removed from your Vendor Express inventory.
- Payments may be delayed. Rather than routine payments offered in Seller Central, those opting for Vendor Express will have to be patient when it comes to payments. While Vendor Central claims to pay vendors every 60-90 days, those using Vendor Express will typically have to wait the full 90 days.
- Your products may be returned. Amazon withholds the right to “return products to you for any reason at your expense.” These reasons can be anything from a mislabled package to one packaged incorrectly. Amazon will deduct the cost from your future payments and invoice any remaining balance. While you do have the option to dispute a return, many have complained that Amazon does not routinely check or reply to disputes.
- Though sales volume may be higher, profit won’t necessarily match. While selling wholesale to Amazon allows most brands to move products at a higher volume, you may not see a profit spike since Amazon controls the pricing of those products.
- Updating product listings can be difficult. Any updates to products must be submitted through Amazon, and may not appear live for some time.
How to Sign Up For Vendor Express
If you decide to give Vendor Express a go, the signup process is relatively straightforward.
You can sign up with your existing customer account or create a new one. Amazon recommends creating an account specifically for Vendor Express.
Once you have an account and have clicked the sign-up option, you’ll need to provide:
- Your business name, email address, physical address and phone number
- Your bank account information
- Your tax ID or social security number
- Your primary warehouse address (if sending products directly to customers)
- Your products (a list of eligible products here)
Afterwards, your account will be under a review period for 5-14 business days. You will not receive any product orders during the review period, and will receive an email once your account is approved.
Is Vendor Express Right For You?
For those unsure if Vendor Central is right for them, Vendor Express presents a good option to get their feet wet.
The platform is ideal for major manufacturers who want the affiliation with the Amazon name.
Through the vendor program, your name and products have the ability to be exposed to a larger audience and will allow manufacturers to take a hands-off approach.
By selling wholesale to Amazon, your involvement with the product and process seemingly ends once you ship to Amazon. They handle the sales, monitoring and selling strategy, and any and all customer relations.
For many, this is a big plus as it allows them to focus on production, rather than learning the ins and outs of marketplace selling.
However, when choosing to become a vendor businesses’ must ask themselves if they are comfortable relinquishing that much control.
Are you comfortable allowing Amazon to set the price of your product? Handling customer interaction? Controlling your product descriptions and portrayals?
If the answers is yes to the questions above, Vendor Express may be worth a try.
Getting Started With Vendor Express
Once you’ve familiarized yourself with the market, it’s time to start selling.
Each option comes with its advantages, and for those wavering between the seller and vendor side, Vendor Express offers an ideal way to test the waters.
