Vertical Financials
Marketplaces

Vendor Central

Definition

Amazon's program where you sell to Amazon wholesale and Amazon resells to customers, instead of selling directly to customers through Seller Central.

Vendor Central works like a wholesale relationship: you get purchase orders and payment terms, but give up control over pricing.

Deductions and chargebacks can take a meaningful share of revenue. Watch for: Amazon payments that never match invoices, because unreconciled deductions quietly reduce your margin.

Example

As a vendor, you invoice Amazon $18 a unit on a purchase order. Amazon sets the retail price, and you deal with chargebacks and co-op deductions on its payments.

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