How to switch from Vendor to Seller on Amazon: a strategic transition with Witailer

In the Amazon ecosystem, brands and merchants have the opportunity to bring their products to the market under two business models: Vendor or Seller. In the Vendor model, Amazon carefully selects the companies it collaborates with, acquiring their products wholesale and managing the entire marketing and logistics process. On the other hand, the Seller model grants companies the freedom to sell directly to end consumers, allowing them autonomy in pricing, control over logistics, and the ability to define tailored business strategies.

Each option has its own advantages and disadvantages, which are explored in our article "Selling on Amazon: differences between Vendor and Seller". In this article, we will focus on the particular case of transitioning from being a Vendor to a Seller on Amazon, and how Witailer can be your strategic ally in this process.

Reasons for the change

Companies often opt to make the switch from being Vendor to Seller due to the limitations they often experience in the Vendor model. These limitations may include lack of control over prices and promotions or conflicts with other suppliers operating outside of Amazon.

Also, when considering the transition between the models, it is crucial to evaluate several key differences. Firstly, the billing process varies significantly between the two. In the Vendor model, the company sells directly to Amazon and issues invoices to this single entity, constituting a B2B transaction. On the other hand, in the Seller model, each sale involves issuing individual invoices to buyers, reflecting a B2C approach and requiring more detailed billing management, in which we can assist companies.

Furthermore, regarding logistics, in the Vendor model, logistics and after-sales management are completely handled by Amazon, which can be beneficial for certain companies that prefer to outsource these functions. In the Seller model, one must decide whether to use FBA (Fulfilled By Amazon) or FBM (Fulfilled By Merchant). With FBA, the company sends its merchandise to Amazon, who takes care of order management, shipping, and customer service, while with FBM, the company is responsible for managing its own logistics and meeting post-sale needs directly. The decision on which option is most suitable will depend on the specific capabilities and resources of each company.

Steps for a successful transition

• Contact the Vendor Central team and request withdrawal from the Vendor program: it is essential to communicate with the Vendor Central team and follow the necessary procedures to withdraw affiliation as a Vendor;
• Create a Seller Central account: once the previous step is completed, it is time to create a new account in Seller Central. This process is straightforward and will provide you with access to all the necessary tools to operate as a Seller on Amazon;
• Migrate your inventory: inventory migration can be a complex process that requires careful attention to avoid disruptions in operations. We recommend seeking assistance from Amazon experts, such as Witailer, to ensure a smooth transition. At this point, companies can choose between FBA and FBM, and in both cases, Witailer can assist with strategic inventory management as well as operational management through partners;
• Optimize your listings: optimizing your listings is essential to increase the visibility of your products on Amazon. If the brand has not optimized its product pages as a vendor, now is a good time to do so. Witailer, with its experience and advanced technology, can optimize your listings to ensure they appear in the top search results, significantly increasing your sales;
• Define your pricing and promotions strategy: as a Seller, you have full control over your prices and promotions. Witailer can help you develop a competitive strategy that maximizes your profits and keeps you ahead in the market.

Successful results

Thanks to Witailer's experience and specialized knowledge, the transition process is carried out efficiently and seamlessly. From inventory migration to listing optimization and the definition of pricing and promotion strategies.

The transition from being a Vendor to a Seller on Amazon is a strategic step that can bring greater autonomy and growth opportunities to your business. With expert support from Witailer, you can successfully make this transition and enhance your presence in the world's largest e-commerce market.