Key Takeaways
- The difference is who sells to the shopper. On Seller Central (third party, or 3P) you sell to Amazon's customers yourself. On Vendor Central (first party, or 1P) you sell wholesale to Amazon, and Amazon sells to the customer.
- 3P gives control, 1P gives a wholesale relationship. On Seller Central you set price and own the Buy Box. On Vendor Central, Amazon sets the retail price and can price below your MAP.
- Model the margin after deductions. Vendor Central margins are cut by the wholesale discount plus co op, freight and damage allowances and chargebacks, and you are paid on negotiated vendor terms instead of Seller Central's roughly two-week settlement cycle.
- Manufacturers and CPG brands often fit 1P, but not always. It suits brands with high volume, strong operations, working capital and a category where "sold by Amazon" helps. It suits poorly those who need price control across retail partners.
- Hybrid works only with rules. Decide which ASINs live in 1P and which in 3P. Never run both on the same ASIN.
Seller Central is where brands sell directly to Amazon shoppers and control price, content and inventory. Vendor Central is Amazon's invitation based wholesale program, where Amazon buys your inventory and sets the retail price. Most growing brands do better on Seller Central. Large manufacturers and CPG brands with strong operations and cash can make Vendor Central work.
By Andrew Morgans, founder of Marknology, selling on Amazon since 2011. Updated September 2026.
What is the difference between Seller Central and Vendor Central?
Seller Central (3P): you sell to the customer
Seller Central is Amazon's platform for third party sellers. You list products, set your own prices and sell directly to Amazon's customers. Amazon is the marketplace, not the buyer. You fulfill orders yourself (fulfilled by merchant, or FBM), send stock to Amazon's warehouses (Fulfillment by Amazon, or FBA), or use Seller Fulfilled Prime from your own or a 3PL warehouse. The listing reads "Sold by [your brand]". Any registered business can open an account. The US Professional plan is $39.99 per month, plus a referral fee on each sale that Amazon sets by category, and FBA fees if you use FBA.
Vendor Central (1P): Amazon buys from you
Vendor Central is Amazon's platform for first party suppliers. You sell inventory wholesale to Amazon, which lists and sells it as "Ships from and sold by Amazon.com". You become a supplier, not a seller. Amazon sends purchase orders (POs), you ship to its fulfillment centers to its routing and labeling rules, and Amazon pays you on agreed terms. It is mostly invitation only: Amazon reaches out to brands it wants to carry based on demand, brand recognition or category strategy.
Amazon describes it the same way: Vendor Central is "by invitation only from Amazon. It's a first-party vendor relationship. Instead of selling directly to customers, vendors sell in bulk (wholesale) to Amazon."
Put simply: Seller Central works like running your own store inside Amazon. Vendor Central works like selling to a big box retailer, where the retailer happens to be Amazon.
Sources, checked September 25, 2026. Sell on Amazon, Amazon Seller Central (Seller Central and Vendor Central compared), Selling plans and fees and How Amazon seller payments work.
Vendor Central vs Seller Central (1P vs 3P): how do they compare?
| Factor | Seller Central (3P) | Vendor Central (1P) |
|---|---|---|
| Who sells to the shopper | You | Amazon |
| Access | Open to any registered business | Mostly invitation only |
| Retail price | You set it | Amazon sets it |
| Listing content | You control it, protected by Brand Registry | You submit it; Amazon can change it |
| Revenue per unit | Retail price minus referral and fulfillment fees | Negotiated wholesale cost minus allowances and chargebacks |
| Inventory | You decide what to stock and when | Amazon decides through purchase orders |
| Fulfillment | FBA, FBM or Seller Fulfilled Prime | Ship to Amazon's warehouses (direct fulfillment in some cases) |
| Getting paid | Disbursements about every two weeks | Negotiated in your vendor terms |
| Customer service and returns | Yours on FBM; Amazon handles most on FBA | Amazon handles them |
| Advertising | Sponsored Products, Sponsored Brands, Sponsored Display, Amazon DSP | The same ad types, with account team access for larger vendors |
| Data | Business Reports and Brand Analytics | Retail analytics on Amazon's sales and inventory of your products |
| Main risk | Operational load and account health | Margin erosion, lost price control and PO cuts |
What are the pros and cons of Seller Central?
Pros
- Price control. You set the price, so you can protect your minimum advertised price (MAP) and keep your retail partners happy. On Vendor Central, Amazon can price below your MAP and there is little you can do.
- Content control. You write the copy, upload images and update them in real time without waiting on a vendor manager or a support ticket.
- Usually better margin per unit. You keep the retail price minus fees instead of a wholesale price minus deductions.
- Faster cash. Amazon generally settles seller accounts every two weeks, instead of paying on negotiated vendor terms.
- Fulfillment choice. FBA for Prime speed, FBM or Seller Fulfilled Prime for oversized or slow moving items, and the ability to switch when FBA capacity limits bite.
- Your own data. Sales, traffic and search data by ASIN, so you can react quickly.
Cons
- It is a business to run. Forecasting, replenishment, advertising, listings, account health and, on FBM, customer service.
- Account risk. If your account is suspended, revenue stops until you fix it.
- Fees keep changing. Referral, fulfillment, storage and inbound fees need watching. See the true cost of selling on Amazon in 2026.
What are the pros and cons of Vendor Central?
Pros
- "Sold by Amazon" trust. Shoppers trust Amazon as the seller, which can help conversion, especially in consumables, baby, health and household categories.
- A familiar wholesale model. You ship bulk purchase orders like you would to any retailer. Amazon handles pricing, customer service and returns.
- Scale. For brands with large catalogs and strong demand, Amazon can move a lot of volume through big POs.
- Retail programs. Vendors can negotiate access to Amazon retail programs and promotions that support volume in some categories.
Cons
- No price control. Amazon prices however it sees fit, often matching the lowest price it finds anywhere. That can undercut your other retail partners and break your MAP policy.
- The CRaP problem. "Can't Realize a Profit" is the industry name for products Amazon cannot sell profitably at its current price and cost. When a product gets flagged, Amazon may stop ordering it or pressure you for a lower cost. Inventory dries up and rank falls.
- Deductions add up. Co op marketing fees, freight allowances, damage allowances and annual cost negotiations reduce what you actually net.
- Chargebacks. Late or short shipments, wrong labels, pallet errors and missing shipment notices trigger deductions from your invoices, and disputing them is slow.
- Cash flow. You are paid on the terms in your vendor agreement, so a steady supplier always has weeks of shipments waiting to be paid. On 60-day terms, for example, about two months of shipments sit in receivables at any time.
- Unpredictable orders. Amazon's systems set PO sizes, and they can drop or pause suddenly. Brands have reported Amazon cutting or pausing orders for smaller vendors and pointing them toward Seller Central.
- Vendor manager turnover. The "dedicated Amazon partner" is often less dedicated than it sounds, and contacts change often.
How do margins compare between 1P and 3P?
Run the numbers before you accept or keep a Vendor Central relationship. A simple illustration using round numbers, not any particular brand:
| Per unit, $40 retail product | Seller Central (3P, FBA) | Vendor Central (1P) |
|---|---|---|
| What you receive before costs | $40 retail price | $20 wholesale cost (50% off retail) |
| Amazon fees or deductions | $6 referral fee (15%) plus $6 FBA fee | About $2 in co op, freight and damage allowances (10% of cost) |
| Chargebacks | None | Depends on your compliance |
| Net to you before product cost and ads | $28 | About $18 |
| When you get paid | About every two weeks | On your negotiated terms |
On 3P you also pay for advertising, storage and your own operations, and those are real. On 1P you still usually fund advertising and co op too. For most brands the 3P number stays higher after everything. The gap narrows for heavy, low price or very high volume products, where wholesale scale and Amazon's logistics carry more weight. Build your own model with your real wholesale terms. Our guide to running Amazon as a profit and loss (P&L) line, not a sales channel shows how we think about it.
Deciding between 1P and 3P, or thinking about leaving Vendor Central? Our Growth Diagnostic is a full audit across Amazon, your own site, TikTok Shop and your other marketplaces, with a 90 day roadmap. It includes a side by side 1P vs 3P model using your real terms, and the cost is credited to your first month if we work together. Start with a conversation.
Vendor Central vs Seller Central: which should a manufacturer or CPG brand choose?
Manufacturers and consumer packaged goods (CPG) brands often assume Vendor Central is the natural fit because it looks like the wholesale model they already run with other retailers. Sometimes it is. Often the retail habits that work with a big box buyer are exactly what makes 1P painful on Amazon. Use this table to pressure test the decision.
| If this describes your business | Lean toward | Why |
|---|---|---|
| You sell through other retailers and distributors and must keep prices consistent | Seller Central | Amazon 1P will match the lowest price it finds, which can set off channel conflict |
| Gross margin is tight and cannot absorb a wholesale discount plus deductions | Seller Central | You keep the retail margin minus fees |
| You are launching new products and need control of content, price and reviews early | Seller Central | You can adjust in real time and fund the launch your way |
| You have an invitation, high volume consumables, and margin after all deductions | Vendor Central | "Sold by Amazon" trust and bulk POs can outweigh the margin given up |
| Your operation already runs electronic data interchange (EDI), retailer routing guides and compliance labeling well | Vendor Central is workable | Chargeback exposure falls when compliance is routine |
| You have working capital to wait for payment on vendor terms | Vendor Central is workable | Without it, receivables strain growth |
| You lack in house Amazon staff and do not want to run marketplace operations | Vendor Central, or Seller Central with a partner | 3P needs active management; a partner or 3PL can carry the operations |
| Your catalog splits into high volume staples and higher margin or new items | Hybrid by ASIN | Staples on 1P, launches, bundles and premium SKUs on 3P |
| Your Amazon POs have been shrinking or paused | Build Seller Central now | A working 3P account is your insurance |
Category patterns
- Grocery, household consumables and health: the strongest case for 1P, because of "sold by Amazon" trust and repeat purchase. Chargeback exposure is also highest here. Subscribe and Save works on both models.
- Apparel and footwear: overwhelmingly 3P. Size variations, returns and margin rarely suit wholesale to Amazon.
- Electronics and accessories: MAP matters so much that many brands choose 3P, sometimes keeping a few anchor products on 1P.
- Home, kitchen and tools: either can work. It comes down to size, margin and operations.
Can you use Seller Central and Vendor Central at the same time?
Yes. Running both, called hybrid, is common. Brands do it because they were already a vendor when they launched 3P, because they want "sold by Amazon" on a few hero products and control everywhere else, or because they are moving from one model to the other.
Rules that make hybrid work
- One model per ASIN. If Amazon sells an ASIN as a vendor and you also sell it as a 3P seller, Amazon usually wins the Buy Box and you end up paying for ads to compete with Amazon for your own product. See how to win the Amazon Buy Box.
- Segment on purpose. High volume staples on 1P. New launches, bundles, exclusives and premium SKUs on 3P where you control price.
- Write the rules down. Which SKUs live where, why, and who decides when something moves.
- Watch content. Vendor side content changes can override what you set on shared listings. Brand Registry helps, but check your top ASINs regularly.
Hybrid goes wrong when nobody owns each side, when the catalog is too small to split, or when a brand tries to use 3P to "protect" prices that 1P is undermining on the same products. That usually ends in a Buy Box fight that hurts conversion and ad efficiency.
How do you move from Vendor Central to Seller Central?
Many brands make this move, by choice or because Amazon cut their orders. Plan it, because it can disrupt rank, reviews and cash for a while.
- Open and set up Seller Central early, with Brand Registry, so you are ready before POs stop.
- Model the transition cash flow. Amazon's remaining 1P inventory sells through while you build 3P stock, and you now fund inventory yourself.
- Move ASINs in waves, starting with products where price control or margin matters most.
- Plan fulfillment. Decide what goes to FBA and what ships from a 3PL. Marknology runs its own 3PL warehouse in Kansas City, so we plan inventory and Amazon operations together.
- Fund advertising. Budget for Sponsored Products and Sponsored Brands to hold rank while sales shift to your offer.
- Watch the Buy Box. Until Amazon's 1P stock is gone, it may hold the Buy Box on some ASINs. Price consistently and be patient.
What should a Vendor Central agency or partner handle for a manufacturer?
1P and 3P need different work, so ask any agency which of these it actually does, and for which model. The work that matters most is rarely the advertising.
| Area | Vendor Central (1P) work | Seller Central (3P) work |
|---|---|---|
| Orders and inventory | Confirming purchase orders, fill rate, routing and labeling compliance | Forecasting, FBA replenishment, backup fulfillment |
| Money | Annual terms, allowances, disputing chargebacks and shortage claims | Pricing, fees, profit by product |
| Price | Watching where Amazon's retail price lands against your MAP and retail partners | Holding price across channels and against resellers |
| Content | Submitting content through vendor tools and checking what goes live | Editing listings directly, protected by Brand Registry |
| Advertising | Sponsored ads funded by you on top of co op | Sponsored ads tied to your own margin |
What we do: we help manufacturers model the 1P vs 3P decision on real terms, build and run Seller Central, plan hybrid catalogs, and move products from Vendor Central to Seller Central in waves, with our own Kansas City warehouse handling prep and fulfillment. See Amazon and ecommerce for manufacturers going direct. If you already have an invitation in hand, read should you accept an Amazon Vendor Central invitation, and for the wider playbook, selling on Amazon as a manufacturer.
What mistakes should you avoid when choosing 1P or 3P?
- Treating an invitation as an honor. A Vendor Central invite feels prestigious. Model the economics before you accept.
- Accepting default terms. Freight, damage and co op allowances and payment terms are all negotiable.
- Assuming bigger means Vendor Central. Plenty of eight figure Amazon brands run only on Seller Central with better margins than vendor competitors.
- Ignoring channel conflict. Amazon's retail pricing affects your other retailers. Talk to your sales team before you commit.
- No backup plan. If you rely only on 1P, a PO cut can stop your Amazon revenue. Keep a working Seller Central account.
We run Amazon alongside Shopify, Walmart Marketplace and TikTok Shop for brands as one plan, and the 1P or 3P choice is part of that bigger channel picture. More in our Amazon brand management hub.
Frequently Asked Questions
What is the difference between Seller Central and Vendor Central?
Seller Central (3P) lets you sell directly to Amazon's customers and control price, content and fulfillment. Vendor Central (1P) means Amazon buys your products wholesale and resells them as "sold by Amazon". The core difference is who the seller of record is and who controls the retail price.
Is Vendor Central invitation only?
Mostly, yes. Amazon invites brands based on demand, brand recognition and category priorities. Seller Central is open to any registered business, which is why most growing brands start there.
Which is more profitable, Seller Central or Vendor Central?
For most brands, Seller Central earns more per unit, because you keep the retail price minus fees instead of a wholesale price minus allowances and chargebacks. Vendor Central can work for high volume consumables with strong margins and good compliance. Model both with your real numbers.
Can I sell on both Seller Central and Vendor Central?
Yes, and many brands do. Keep each ASIN on one model, segment the catalog on purpose and write down the rules. Selling the same ASIN on both usually ends with Amazon holding the Buy Box.
How long does Amazon take to pay vendors?
Vendor payment terms are negotiated in each vendor's agreement, so check your own terms and model cash flow on them. Amazon says it generally settles Seller Central accounts every two weeks. Plan your working capital around whichever model you choose.
Is Amazon moving brands from Vendor Central to Seller Central?
Brands have reported Amazon cutting or pausing purchase orders for smaller vendors and encouraging them to sell through Seller Central. Vendor Central is not going away, but any brand that relies only on 1P should have a working Seller Central account as a backup.