Transitioning from Vendor Central to Seller Central on Amazon can give your brand more control, higher margins, and long-term flexibility. Although being a Vendor on Amazon brings its perks, it also comes with several challenges that not all brands can overcome. That is why it’s important to understand the nature of this relationship, its limitations, and Amazon’s motivations will help you assess whether your business is suitable for staying as a Vendor or if the Seller model could be a better option.
To begin with, let’s define the basics of both relationships with Amazon. As a Vendor, you are a 1P, and you will receive purchase orders directly from Amazon, and this one sells the products to customers. On the other hand, as a Seller, you are a 3P and will sell your products directly to customers through the Amazon website. The main difference between the two models is inventory control and how it is shown on the detail page. As a Seller, you have full ownership of the products; as a Vendor, Amazon owns the inventory and has some extra rights over how it’s sold on the platform, like pricing and the content of the listing.
If you’re still evaluating which model suits your business better, take a look at our breakdown: Breaking Down Amazon Vendor Central vs. Seller Central: The Pros, Cons, and Common Mistakes to Avoid.
This point brings some important issues with the Vendor model, and if you have been a 1P seller for some time, you might have already noticed them. Factors like the lack of price and promotional control, payment delays, and chargebacks can have a big impact on your profitability. Additionally, the limitation on customer behavioral data and control over branding adds extra difficulty to marketing efforts.
All of these common issues showcase the overdependence on Amazon to make sales and receive purchase orders, fully relying on Amazon’s decisions regarding the volume they choose to send. This means that if Amazon decides that a Vendor brand is no longer suitable for this model, it can end the relationship immediately. As a matter of fact, in November 2024, Amazon initiated Vendor terminations with several brands as part of a strategic realignment, leaving them with no option but to transition to another model or exit the program.
Benefits of becoming a Seller on Amazon
Control over the listings is the key advantage of being a Seller on Amazon. You can decide on price changes whenever you want, whether due to increased production costs or to explore pricing and promotional strategies. Having a 3P relationship with Amazon gives you full power over the cost at which your products are sold to customers.
In the same way, in terms of content, if you are a brand owner and hold the Buy Box, you will have full control over how the product is displayed on the detail page. Additionally, access to customer data reports and deeper insights into customer behavior provides important information to make better data-driven decisions to boost sales.
The combination of all of these aspects creates an ideal scenario to grow your business on Amazon and potentially achieve a higher margin than as a Vendor. However, it’s important to remember that this will depend on the business, price point, and product. Some brands are simply more suitable for the 1P model.
If, as a Vendor, you are currently considering a transition to become a Seller, the first thing you need to do is review your Vendor terms and check if there is any clause that prevents you from switching to a 3P model or having a hybrid setup. This is an extremely delicate process, and you need to ensure it is reviewed in detail. Having legal assistance is also recommended to gain a clear understanding of the conditions of your relationship with Amazon.
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Misconceptions You Should Know
When you’re thinking about switching models on Amazon, it’s normal to feel some level of fear. However, if that fear is based on inaccurate information, you might be missing a good opportunity. So let’s clarify some of the most common misconceptions about the transition from Vendor to Seller.
- Myth: Seller is less professional
Reality: Many major, well-known brands operate successfully as 3P sellers on Amazon. This has nothing to do with professionalism, but rather with choosing the model that best suits your brand in terms of logistics and profitability. - Myth: Winning the Buy Box is harder
Reality: Winning the Buy Box depends on price competitiveness and contribution rights. As a brand owner, leveraging FBA and a solid pricing strategy will help you secure the Buy Box consistently. - Myth: Vendors experience better organic rankings
Reality: The running system on Amazon considers factors like delivery time, price point, listing quality and customer satisfaction. Being a 1P or a 3P is not part of the equation to have a better ranking. - Myth: Sales will drop
Reality: Performance will depend on marketing principles like Brand presence and customer trust. With a well-planned logistics setup, strong listings, and high-quality products, it’s possible to maintain your current sales flow, or even boost growth.
Key Factors for a Successful Transition from Vendor to Seller on Amazon
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Understand your current pain points and run the numbers:
Identify the specific operational aspects that are hurting your profitability and what needs to be modified. To do this, gather all the data you can in terms of sales, costs, and margins. Make sure you fully understand how logistics would work to avoid losing money on overlooked details like storage fees or FBA prep.
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Consider a hybrid model:
If seller fees and logistics are not completely suitable for all of your products, you might want to consider a hybrid model. This way, you can keep profitable items on Vendor and move the rest through Seller. Remember to review your Vendor terms carefully to ensure you’re not violating any clauses.
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Avoid Stockouts:
One of the biggest points to consider when transitioning is maintaining good inventory levels so listing metrics aren’t affected. A good strategy is to gradually start sending inventory through Seller while reducing stock levels on Vendor to ensure products stay active on the platform.
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Consider getting a 3P expert:
Transitioning to the Seller model can be overwhelming and complex, so partnering with an expert can make all the difference. At BellaVix, we specialize in helping brands navigate this process, ensuring a seamless and efficient transition.
If you’re looking for guidance through the transition from Vendor to Seller on Amazon, feel free to get in touch. Our team is here to offer the support you need to make this shift with confidence.
To sum up, if you’re noticing profitability issues with the Vendor model, transitioning to Seller has the potential to drive business growth and open up new opportunities on the platform. While the transition may come with challenges, the flexibility and opportunities it offers can position your brand for greater success in the long run.
Ready to Regain Control and Profitability on Amazon?
If you’re feeling stuck in the Vendor model—dealing with price limitations, chargebacks, and unpredictable POs—you’re not alone. We’ve helped brands just like yours make the shift to Seller Central, where they call the shots, set their pricing, and unlock deeper customer insights.
Whether you’re exploring a hybrid approach or fully transitioning to 3P, having the right partner by your side can make or break your success. At BellaVix, we specialize in helping brands navigate this shift smoothly—protecting your sales, building your margin, and putting you in control of your future on Amazon.
If you’re serious about reducing dependency on Vendor terms and want a clear path to long-term growth and brand authority, let’s build that roadmap together.
Fill out the form below, and one of our Amazon growth experts will connect with you to map out a winning transition strategy. No guesswork, no generic advice—just clear, actionable insights tailored to your business.