What changed
Amazon's two selling portals: 1P vendor and 3P seller
When
Updated October 2026
Who it affects
Brands and manufacturers deciding how to sell on Amazon
What to do
Compare net margin after all costs, not just headline price

Key takeaways

  • Vendor Central sells to Amazon by invitation; Seller Central sells directly to shoppers.
  • 3P gives price control and data; 1P gives bulk purchase orders and simpler selling.
  • Compare net margin after every cost before choosing or switching.
Vendor CentralSeller Central
You set retail price
Open registration
Bulk purchase orders
Amazon owns the inventory
Run Sponsored ads
A+ Content and Stores

Brand tools require Brand Registry on the seller side.

What is Vendor Central?

Vendor Central is the portal for first-party vendors, usually manufacturers and distributors. Amazon sends purchase orders, you ship cases to Amazon's warehouses, and Amazon pays your invoices on the terms in your vendor agreement. Amazon then lists and sells the products as "Ships from and sold by Amazon" and decides the retail price. Access is by invitation from Amazon's vendor teams; brands cannot sign up on their own.

What is Seller Central?

Seller Central is the portal for third-party sellers. Anyone who passes registration can join, on the Individual plan at $0.99 per item sold or the Professional plan at $39.99 per month. You set prices, own the inventory until it sells, and choose between FBA and fulfilling orders yourself. Amazon earns referral fees, often 15% in common categories, plus FBA fees. See our Amazon Seller Central guide.

Key differences at a glance

  • Who buys: Amazon (1P) vs the shopper (3P)
  • Retail price: set by Amazon (1P) vs set by you (3P)
  • Access: invitation only (1P) vs open registration (3P)
  • Payment: invoice terms (1P) vs regular payouts after sales (3P)
  • Costs: negotiated allowances and co-op (1P) vs referral, FBA and ad fees (3P)
  • Data: vendor reports (1P) vs detailed seller and brand reports (3P)
  • Inventory risk: transfers at purchase (1P) vs stays with you (3P)

Pricing control and the Buy Box

The biggest practical difference is price. In Vendor Central, Amazon sets the retail price and may lower it to match other retailers, which can trigger price conflicts with your other channels. Vendors can be asked to fund the gap through negotiated terms. In Seller Central, you control price, coupons and deals, and you can respond quickly to competition. Our guide to the Amazon fair pricing policy explains how price affects offer visibility in 3P.

Costs and margin

Vendor margins come from your wholesale price minus allowances negotiated in annual terms, such as marketing, damage and freight allowances. Seller margins come from your retail price minus referral fees, FBA fees, storage, returns and advertising. Neither is automatically cheaper. The only fair comparison is net margin per unit after every cost, modeled for your own catalog. Our Amazon FBA fees guide lists the 3P side; Amazon's 2026 update raised average FBA fees by about $0.08 per unit from January 15, 2026.

Where the money goes

Vendor (1P)Seller (3P)
RevenueWholesale invoiceRetail sale price
Main costsNegotiated allowancesReferral and FBA fees
Cash timingInvoice termsRegular payouts
Inventory riskMoves to AmazonStays with you

Advertising and brand tools

Both vendors and brand-registered sellers can run Sponsored Products, Sponsored Brands and Sponsored Display, and both can use A+ Content and Brand Stores. Sellers enrolled in Brand Registry get Brand Analytics and protection tools. Vendors use Amazon's retail analytics and often have access to programs negotiated in their terms. Advertising strategy carries over between models, which makes switching or running both easier. See our Amazon advertising guide.

Operations and workload

Vendor Central replaces many small orders with bulk purchase orders, which suits manufacturers set up for case-pack wholesale. It also brings compliance rules, chargebacks for shipping or labeling errors, and forecasting work. Seller Central needs daily attention to pricing, inventory, ads and account health, but gives full visibility. Brands without an Amazon team usually feel the difference most in Seller Central's day-to-day workload.

Switching from Vendor Central to Seller Central

Amazon has ended vendor agreements with many smaller and mid-sized brands in waves since late 2024, according to consultants who track the notices, and invited them to sell as third-party sellers instead. Product detail pages and reviews stay on Amazon, but vendor reports and advertising campaigns do not transfer. Moving needs planning: open a Seller Central account under the same legal entity, enroll in Brand Registry, create seller offers on the existing ASINs rather than new listings, plan inventory so listings stay in stock as Amazon's retail stock sells through, and rebuild advertising in the seller account.

Expect a transition period where Amazon's remaining stock and your 3P offers overlap on the same ASINs.

  • Confirm Brand Registry is in place
  • Open and verify a Seller Central account
  • Plan inventory for the transition period
  • Rebuild advertising under the seller account
  • Watch listings for content or offer changes

The hybrid model

Some brands sell certain products through Vendor Central and others through Seller Central, for example fast-moving staples via 1P and new launches or bundles via 3P. Hybrid gives flexibility but needs clear rules on which ASINs belong where, so the two channels do not compete on the same listing.

Which should you choose?

Choose Vendor Central if Amazon invites you, your business is built for wholesale purchase orders, and you value predictable bulk orders over price control. Choose Seller Central if you want pricing control, direct data and faster cash flow, or if you have no invitation. Most growing brands start in 3P.

How PPC Spider helps

PPC Spider manages both models. Our Vendor Central management service covers 1P catalog, operations and advertising, and SpiderOS monitors bids, budgets, search terms and stock for both 1P and 3P accounts. Start with a free Amazon audit.

Sources

  • Amazon: Sell on Amazon pricing (sell.amazon.com/pricing)
  • Amazon Selling Partners: Update to U.S. referral and FBA fees for 2026 (sellingpartners.aboutamazon.com/update-to-u-s-referral-and-fulfillment-by-amazon-fees-for-2026)
  • Goat Consulting: Switching from Vendor Central to Seller Central (goatconsulting.com/amazon-policy/switch-vendor-central-to-seller-central)
  • Amazon: Brand Registry (sell.amazon.com/brand-registry)
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