Amazon Selling Basics

This post will help you identify the different ways to sell products on Amazon. The post focuses primarily on Seller Central, though we do have the same level of knowledge of Vendor Central. However, VC is typically reserved for large corporations with a department dedicated to this relationship and is typically one that would need to be discussed in depth and case by case. There is a lot of confusion surrounding the different portals and the different selling types within each portal, so we'd like to try and demystify that if we can.

First Things First - Here's a Quick List of What Things Mean

PDP Product Detail Page - this is the page you see when you click on a product. The images, bullets, product information, specifications and A+ content are all things found on the PDP.

Buy Box This is the Add to Cart button on the right of the product (or below on the App). If your product is not tied to this, a customer must click on "Other Sellers On Amazon" to find your listing and add it to their cart. The percentage of purchases that stem directly from the buy box button is, as you can imagine, exponentially higher. Losing the buy box will dramatically decrease your ability to sell an item.

Above the Fold This term comes from those not totally gone, but much less common days when we got our information from newspapers. These papers are folded in half. Content that was above the fold was what you saw when you looked down at the stack. The first thing you see when you pick it up. It is the most visible real estate on the paper. Similarly, Above the Fold content is visible on the screen without requiring the customer to scroll any further. You'll find all of the images here, as well as the title, bullet points and the Buy Box.

1P Stands for 1st Party. This is product that is sold by Amazon, shipped by Amazon, and they are the seller. The only way to get Amazon to buy your products, stock them, and sell them is by being invited to be a Vendor and joining Vendor Central. Amazon will handle all aspects of the customer relationship.

2P Stands for 2nd Party. This is product you own, but you've sent it to Amazon to be fulfilled. This function is called Fulfilled by Amazon (FBA) and is a great way to control your shipping costs. Typically there is a calculator in seller central that allows you to put in your costs and product dimensions, and Amazon will apply their algorithm to tell you how much fees will be. The fees include shipping to the customer, but do not include transportation to their facility. You do have to meet some criteria to do this, and you need to have some volume before you can send products in. For these products, you set up how you want returns to be handled, and Amazon will manage the customers for these products for you, but the rest of the listing is yours to manage.

3P stands for 3rd Party. This is product you are selling on Amazon yourself, and you are essentially a third party shipper of this product on behalf of Amazon. You handle absolutely every aspect of this transaction, which will be explained below.

Prime Eligible This indicates that a Prime customer can see your listing when the Prime Only toggle is flipped, and they can receive it under the Prime shipping timeline (2-day or 1-day where available) for free. It is typically only possible to earn this with a 1P or 2P relationship, but if you have a lot of regional warehouse locations and great shipping speeds, it is possible to earn it.

Reviews What customers think of your product is your responsibility to manage. It is possible in some cases to use Amazon's Vine program to gather reviews, but they normally roll in organically. You are not allowed to offer people compensation for providing a review (typically people will put inserts into packages to generate these) and you cannot change reviews. There is a ticketing process for abuse, misinformation, etc. but in my experience it is incredibly difficult to get them removed. 3.5 is the minimum for a healthy PDP.

TVG The Vie Group - We are the ones who will do the heavy lifting at any point in this journey, should you need us!

Seller Central (2P and 3P)

This site is typically for:

• Individuals selling products from their homes or warehouse spaces

• Brands who do not have a relationship or enough sales to get into Vendor Central

• Brands who want to control their own warehousing and logistics

Seller Central PDP's, Winning the Buy Box, and Taking Care of Customers (Whew!)

Below are some tips, but there are always nuances and every product category can have different criteria. Use this as a guide, but feel free to reach out to us if you have specific questions.

1. You must either be the first to list the ASIN (Amazon Specific Item Number) you are selling or be the brand owner to control the images and content in the listing. If a product already exists, and you try to create a new ASIN, the original ASIN owner (whether it is Amazon or another 3P seller) is likely to report you.

2. If you are not the brand owner, or the first to list the product, you must have a value proposition that will allow you to win the buy box. This can be tricky, but providing the best deal, and free shipping, will be the two most important first steps.

Pro Tip While everyone is free to sell in this marketplace under the Amazon Seller Agreement guidelines, be advised that if you are competing on an ASIN with existing "Sold by Amazon" and "Shipped by Amazon" it is going to be incredibly difficult to win the buy box.

3. If you are the brand owner, you must comply with all of the regulations Amazon has set for both the type of product you are selling, as well as what they require on the PDP (Product Detail Page) for your product to be approved.

4. If you are able to set up EDI (Electronic Data Interchange) you can receive orders and send back shipping confirmations with tracking electronically. If you do not have this capability, you must manage this entire process yourself. Doing so in a timely manner is imperative to your overall success).

5. You must pay for your own shipping costs.

6. You must handle all of your own customer service.

Vendor Central (1P)

The site most used by corporations is Vendor Central. This is an invitation only portal, and is typically for brands that have either been selling on Seller Central for a while successfully, or are national brands with a relationship with Amazon. Many times these come with an actual buyer, and in this instance Amazon is purchasing product from you themselves.

Once in a Vendor Central relationship, there can be less complexity. The goal is to get Amazon the most profitable deal, and work out importing this product and selling it direct - many times by the pallet, truckload, or container load! Gone are the days of one by one shipments, but there can be additional layers to think through.

Your Vendor Manager will work out the details in partnership with you, and we can help with that as well if the opportunity is there or you are having difficulty with any aspect of this process.

Brandy Registry

It is important to note that a brand must have a registered trademark (They'll ask you for the number) in order to register a brand and set up a brand store page. There is no cost from Amazon to do any of this, but the trademark is a must.

Help Wanted?

This is an incredible amount of information to process, and a lot to get into on your own. Luckily, The Vie Group is here to help!