We are currently shipping to Amazon and are set up on Vendor central.
We find that the monthly Co-op , freight fees are too high and want to understand the difference between the different types of setups for Amazon
There are definitely hidden costs in the fine print when using Vendor Central and there aren’t many ways around them — Amazon makes their own rules. However, you really only have two ways to get your products onto Amazon yourself: as a Vendor, which you’ve experienced, or as an Amazon Seller, and that means handling fulfillment yourself or via Amazon FBA. As a rule, at the end of the day you’ll have higher margins as an Amazon Seller vs. Vendor Central — but more management issues to get orders shipped yourself or into FBA. You can learn more about Amazon seller fees here and Amazon FBA costs here.
However, there is a third way that many small manufacturers use to do what I call “pseudo-direct sales” on Amazon. There are a few Amazon Sellers that act as fulfillment companies using Amazon’s marketplace and FBA system. WhiteBox is probably the best known. These companies are basically Amazon Sellers that use FBA as their fulfillment arm and are really good at maximizing Amazon sales and minimizing FBA costs to the benefit of their clients.
The advantage is they handle all of the Amazon management (and frankly, nonsense) for you. They are the seller of record on Amazon, not you, and handle any customer service or FBA issues that pop up. For this, they charge an added fee on top of Amazon Seller fees that you’d pay handling it all yourself. Many small manufacturers find this option be a better deal than working with Vendor Central. You might look into this if you want to move away from Vendor Central but don’t want to handle Amazon sales yourself.
I hope this helps, good luck!
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.