Glossary
Glossary

Vendor Central

Vendor Central is the platform for first-party (1P) vendors who sell to Amazon at wholesale. Amazon then sells the product to consumers as the retailer. It contrasts with Seller Central, used by 3P marketplace sellers.

Vendor Central1Pfirst-partyvendorAmazon vendorwholesale

Vendor Central is the Amazon platform for 1P (first-party) vendors — brands that sell their inventory wholesale to Amazon. Amazon owns the inventory, sets the retail price, and is the seller of record to the consumer. The vendor's customer is Amazon Retail; the consumer is Amazon's customer.

Invitation-only. Amazon issues vendor invitations; brands cannot self-onboard.

1P vs. 3P at a glance

1P (Vendor Central)3P (Seller Central)
Who owns inventoryAmazonSeller
Who sets retail priceAmazonSeller
Who is the seller of recordAmazon RetailSeller
How vendor gets paidNet 30/60/90 from AmazonNet biweekly payouts from buyers
Margin modelCost-price + chargebacks/co-opASP − referral − FBA
VolumeBulk purchase orders (POs)Per-order
MarketingVendor co-op + adsAds only
AMS/DSP accessYes (often broader)Yes

Why brands stay 1P (or move to it)

  • Bulk POs — predictable volume, large orders.
  • Prime + Sold By Amazon badge — highest-trust signal.
  • Vine and retail merchandising — programmes only 1P can access.
  • No FBA operational overhead — Amazon handles fulfilment by default.

Why brands leave 1P for 3P

  • Margin — wholesale margin to Amazon is structurally thinner than 3P after-fee margin in many categories.
  • Pricing control — Amazon's price-matching can trigger price wars the brand cannot stop.
  • Chargebacks and shortages — Vendor Central charges retroactive fees that are hard to dispute.
  • Co-op contributions — annual ask grows.

Many large brands run hybrid 1P + 3P — letting Amazon Retail order the staples and running 3P for new or high-margin SKUs.

Ads from Vendor Central

Sponsored Products, Sponsored Brands, Sponsored Display, and DSP are all available to vendors — the same Ads console, just attached to a vendor account instead of a seller account. Amazon DSP eligibility historically opens earlier for vendors than for 3P.

Common mistakes

  • Accepting the first cost-price proposal. Annual vendor negotiations (AVN) set margin for the year; preparation matters.
  • Not auditing chargebacks. ~30% of vendor chargebacks are disputable; most are never disputed.
  • Letting Amazon pricing slide. Amazon's MAP enforcement requires the vendor to keep MAP discipline elsewhere first.
  • Treating 1P and 3P as either/or. Hybrid is increasingly the default for mid-to-large brands.

Related terms

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