Amazon Vendor or Seller – which to choose and when
Updated: · GrowNow team
Amazon Vendor (1P) is wholesale selling to Amazon – Amazon buys your stock and resells it. Amazon Seller (3P) means selling directly to customers on Amazon’s marketplace, at your own price and with your own responsibility for the listing. For most manufacturers, a combination of both models works best.
What is Amazon Vendor (1P)?
Under the Vendor model, a manufacturer or distributor sells goods to Amazon against purchase orders (POs). Amazon takes ownership of the stock, sets the retail price and is responsible for selling and customer service. Access to Vendor Central is by invitation from Amazon only.
- Amazon orders stock at a rhythm it sets itself, based on its own forecasts.
- The retail price is Amazon’s decision, not the supplier’s.
- Settlements include trading terms negotiated every year, as well as chargebacks for supply-chain errors.
- The product is marked “Ships from and sold by Amazon”, which builds customer trust.
What is Amazon Seller (3P)?
Under the Seller model, the seller lists products on Amazon’s marketplace and sells directly to customers. The seller sets the price and is responsible for stock and order fulfilment – either in-house or through Fulfilment by Amazon (FBA). Amazon charges a referral fee on each sale, which depends on the category, plus FBA fulfilment fees.
Vendor vs Seller – the key differences
| Vendor (1P) | Seller (3P) | |
|---|---|---|
| Who sells to the customer | Amazon | The seller |
| Who sets the price | Amazon | The seller |
| Cash flow | Invoice to Amazon, payment terms | Payouts from Amazon after the sale |
| Control over the listing | Limited | Full |
| Main risk | Chargebacks, margin pressure | Managing stock and advertising |
| Access | By invitation | Open registration |
When does Vendor pay off, and when does Seller?
Vendor works well for products with high, predictable sell-through, where scale and the “sold by Amazon” position matter. Seller gives you control over price and brand, so it suits new launches, premium products and quick tests in new markets. In practice, many brands combine both: bestsellers in 1P, the rest of the catalogue in 3P.
How does it work with GrowNow?
GrowNow buys stock from the manufacturer and sells it on its own Vendor accounts in Europe and Seller accounts, including in the US. The manufacturer doesn’t have to choose a model or run any accounts: you issue us a B2B invoice, and we decide which channel is more profitable for each product based on data.
See how we sell in both models ›
Frequently asked questions
Can I sign up for Amazon Vendor?
No. Vendor Central is available by invitation from Amazon only. GrowNow sells under the Vendor model on its own accounts, so the manufacturer doesn’t need an invitation.
Can you sell as a Vendor and a Seller at the same time?
Yes, it’s common practice. You just need to make sure your offers don’t compete with each other on price.
Who pays for returns under the Vendor model?
Amazon accepts returns from customers, but a supplier’s trading terms usually include return allowances or caps. The details depend on the agreement with Amazon.
What are chargebacks in Vendor Central?
Charges Amazon deducts from a vendor’s invoices for operational errors, such as late or incomplete deliveries, incorrect labelling or packaging that doesn’t meet Amazon’s requirements. Getting the supply chain right from the first PO keeps them low.
Can both models use Amazon advertising?
Yes. Vendors and sellers can both run Sponsored Products and Sponsored Brands campaigns through Amazon Ads. Advertising works the same way for the shopper; what differs is who owns the stock and sets the price.