Global Expansion via Vendor Central: Benefits, Risks, How-To
Overview
In the rapidly evolving world of Amazon, brands that thrive are those that go beyond their home market. Global expansion is no longer a luxury—it’s a strategic necessity for sustained growth. If you're an Amazon agency professional or brand considering scaling internationally, you might be wondering: what’s the best way to expand across Amazon’s worldwide marketplaces? In this article, we unpack expert insights from a recent Marketplace Masters webinar on using Amazon Vendor Central for global expansion. Hosted by Paul Sonneveld (Co-Founder of MerchantSpring, a leading Amazon analytics platform) and featuring Amazon veteran Jérôme de Guigné (Founder & CEO of e-Comas), the session explored how Vendor Central (Amazon’s 1P wholesale program) can accelerate international growth for brands. We’ll synthesise those insights into a clear game plan you can use to decide your expansion strategy and navigate the journey successfully.
Vendor Central vs. Seller Central: The Global Expansion Dilemma
When plotting an Amazon global expansion strategy, one of the first decisions is whether to use Vendor Central or Seller Central (often called 1P vs 3P). Many brands immediately think of Seller Central (Amazon’s third-party marketplace) for international expansion, since it’s accessible and widely discussed. However, as Jérôme points out, Vendor Central can be a powerful yet underappreciated route for going global. So what’s the difference, and why might a brand choose the Vendor program for international growth?
Vendor Central (1P) means you sell wholesale to Amazon – Amazon buys your products and sells them to customers as a retailer. Seller Central (3P) means you sell directly to customers on Amazon’s marketplace, handling pricing and potentially fulfillment (via FBA or FBM). Each model has distinct implications for global expansion:
- Logistics & Fulfillment: With Vendor Central, Amazon handles the heavy lifting of fulfillment across borders. Amazon issues purchase orders (POs) and manages warehousing, shipping, and import/export details. This simplifies international logistics tremendously. You won’t need to navigate foreign VAT registrations or set up local entities just to start selling abroad – Amazon takes care of taxes and compliance as the importer of record. “From that point of view, you can get started from day one. Amazon takes care of all of that, as well as warehousing close to the market,” Jérôme noted, contrasting it with the complex VAT and import setup required for a Seller Central expansion in Europe.
- Pricing & Control: On Seller Central, you control your retail prices in each marketplace; on Vendor Central, Amazon controls the end-customer price. This means Vendor Central sacrifices pricing control and flexibility – Amazon can discount or adjust prices to win the Buy Box, sometimes leading to price erosion. However, for some brands, this trade-off is acceptable in exchange for broader distribution. Additionally, selling as a vendor means you’re not directly competing with your other retail partners. Amazon is just another retailer carrying your products, which can help maintain relationships with distributors and stores (unlike being a 3P seller, which makes you a retailer yourself).
- Speed of Market Entry: Vendor Central can often get your products into new countries faster. Rather than setting up multiple Seller Central accounts, currency conversions, and FBA shipments, a vendor simply receives POs from Amazon’s local retail teams. Once you have a Vendor Central account in one region, Amazon’s systems may automatically list and start selling your products in other countries within that region. In Europe, for example, if you’re a vendor in France, Amazon’s algorithm might list your products across Amazon’s EU marketplaces (Germany, Italy, Spain, etc.) without you doing a thing. This pan-European supply approach means instant multi-country reach – but it also means you lose control over where and how your products are sold. (More on this in a moment.)
In short, Vendor Central offers a “hands-off” expansion path: Amazon handles operational complexities and acts as retailer, which can be ideal for brands that prefer a B2B wholesale model or lack infrastructure for global direct-to-consumer sales. Seller Central offers more control and potentially higher margins, but requires greater effort in each target country. The right choice depends on your brand’s strategy and resources – let’s explore those considerations in detail.
Key Benefits of Using Vendor Central for International Expansion
Why might a brand favor Amazon Vendor Central for global expansion? Here are some core benefits and real-world scenarios where the vendor model excels:
- ✅ Simplified Logistics and Compliance: As mentioned, Vendor Central spares you from the thorny logistics of cross-border e-commerce. Amazon arranges international freight, import duties, and local delivery to customers. For example, a U.S. brand expanding to Europe via Vendor Central doesn’t have to immediately set up EU warehouses or register for VAT in multiple countries – Amazon’s retail supply chain does it for them. This is especially attractive for small teams or any brand without expertise in international shipping. (Do note: you will need to be able to fulfill Amazon’s purchase orders in a timely manner. In Europe, that typically means delivering goods to Amazon’s warehouse within 5 business days of a PO(marketplacepulse.com). Many vendors choose to forward-deploy inventory to a local 3PL or distributor to meet Amazon’s delivery windows.)
- ✅ Rapid Pan-European Reach: Vendor Central in the EU operates on a unified system, enabling what Jérôme calls “very simple” expansion across Europe. If Amazon has your product in one country, it can start selling it in other EU markets automatically. For instance, your France vendor account could suddenly start serving customers in Germany or Italy if demand exists. Amazon will shuffle inventory between countries behind the scenes. This can be fantastic for exposure – some vendors see their sales “go through the roof” in one country because Amazon discovered strong demand in another and funneled stock there. Essentially, with one vendor relationship you tap into all Amazon European marketplaces (Amazon’s algorithm treats EU as one big market for inventory purposes). Brands looking for *maximum reach with minimal setup will find this appealing. (By contrast, a Seller Central expansion in Europe requires configuring each marketplace or using Pan-European FBA and dealing with compliance per country.)
- ✅ No Direct Retail Competition: For brands that primarily sell wholesale (B2B2C), Vendor Central allows them to expand on Amazon without “going direct” and upsetting retail partners. Amazon acts as just another retailer buying your product. If you have brick-and-mortar distributors or resellers in new markets, being a 1P vendor can avoid channel conflict (since you’re not undercutting them as a seller). Amazon Vendor Central might be the only feasible way some wholesale-focused brands can justify an Amazon expansion internally. You maintain a consistent wholesale model – Amazon places orders like any other big retail account.
- ✅ Access to Amazon Retail Programs: Certain marketing and merchandising perks on Amazon are vendor-exclusive. As a vendor, you may access A+ Content, Amazon Marketing Services (AMS) ads, Vine reviews, and more premium programs from day one, even in new marketplaces. (Seller Central has equivalents for many of these, but some high-end placements and opportunities launch first or only for vendors.) If leveraging Amazon’s full marketing engine in each country is important, being a vendor gives you that toolkit out of the gate.
- ✅ Simpler Tax and Accounting: Because Amazon is the seller of record to consumers, vendors avoid dealing with foreign sales tax, GST/VAT remittance, or consumer invoicing. You just invoice Amazon (often in your home currency) and get paid by Amazon. This can simplify accounting when entering a new region. For example, expanding as a seller into the EU requires VAT registration in one or more countries and filing regular returns – a vendor expansion does not add that burden, since Amazon handles the VAT on their retail sales.
These benefits boil down to ease and scale. If your goal is to expand quickly into multiple countries with minimal overhead, Vendor Central can be a game-changer. As Jérôme quipped during the webinar, “It’s great to be able to talk about Vendor Central for a change – Seller Central might be growing faster, but Vendor still has its place.” However, before jumping on the vendor bandwagon, it’s crucial to understand the flip side: challenges and trade-offs that come with the 1P model, especially in an international context.
Challenges and Risks in Expanding via Vendor Central
No Amazon model is perfect. In fact, Vendor Central’s advantages come with corresponding disadvantages that every expanding brand should weigh carefully. Here are the key challenges and potential pitfalls when using Vendor Central for global expansion:
- ⚠️ Loss of Control (Pricing & Distribution): Perhaps the biggest concern is control. On Vendor Central, Amazon has autonomy to price your products and decide where to sell them. Once you sell inventory to Amazon, they can (and will) redistribute it to any marketplace in the region. Jérôme shared a cautionary example: a brand might open a vendor account in France, intending only to serve French customers, but suddenly find Amazon diverting stock to Germany or the UK without approval. Your sales reports may show high “vendor sales” in one country but little local sell-through – an indication Amazon is shipping your French inventory to fulfill demand elsewhere. Moreover, you won’t have transparency into those cross-border sales on your Vendor Central dashboard. (Vendor reports show sell-through only for the country of your account; once inventory is transferred out, it vanishes from your local data.) This opacity frustrates many vendors, as they cannot tell which countries are actually driving consumer purchases for their product. In short, you gain breadth but sacrifice insight.
- ⚠️ Pan-EU Price Erosion: Because Amazon manages European vendor accounts in a pan-regional way, it will seek the lowest cost source of inventory. If you have different vendor terms or pricing in each country (say, due to legacy distributors or varying strategies), Amazon’s system might exploit that. For example, if your French vendor account offers a lower cost price than Germany’s, Amazon might order everything through France and supply Germany from that stock. This price arbitrage can undermine local strategies and put internal divisions at odds. Even if you intended to maintain price differences across countries (or keep one country “offline”), Amazon’s algorithms will level it out. Vendors have seen Amazon match the lowest wholesale price across Europe, compressing margins. As Paul noted, this can result in unintended margin squeeze and conflict with distributors. Global expansion via vendor requires harmonising your pricing and terms – otherwise, Amazon will do it for you, in their favour.
- ⚠️ Lower Profit Margins & Payment Terms: Generally, selling via Vendor Central yields lower margins than selling direct (3P) because Amazon takes its retailer markup out of your wholesale price. You also may face extended payment terms (Amazon often pays vendors on Net 60 or 90-day terms) and periodic requests for funding agreements, co-op fees, and chargebacks. While these are not specific to international expansion, they compound the financial considerations. Expanding to new countries as a vendor means fronting more inventory to Amazon and waiting longer for payment – effectively tying up working capital. By contrast, Seller Central pays out every 1-2 weeks and you get the full retail price (minus fees).
- ⚠️ Operational Complexity & Penalties: Vendor Central simplifies customer fulfillment, but it brings its own operational burdens. You must be ready to meet Amazon’s PO demands in each new market. This can include packaging products to local requirements, translating labels or manuals, and ensuring fast lead times. If Amazon orders on Monday, they expect goods delivered to their warehouse by Friday (in many regions). Failing to hit the delivery window can result in chargeback fees or cancelled orders. In practical terms, brands often need a local warehouse or distributor in the target region to fulfill POs quickly. For example, a U.S. brand expanding to the EU might still need to stock inventory in Europe to reliably supply Amazon’s weekly orders – shipping each PO from the US would be too slow and costly. So, while you avoid dealing with individual consumer orders, you do have to establish a supply chain to Amazon’s fulfillment centers in the new region.
- ⚠️ Entry Barrier – Invite Only: Unlike Seller Central, where any brand can sign up, Vendor Central is an invite-only program. In recent years, Amazon has dramatically tightened access to new vendor accounts. Unless you are a top brand or fill a strategic category gap, Amazon may not invite you to become a vendor in a new marketplace. This is a practical challenge: you might be a vendor in your home country but unable to secure vendor accounts abroad. Amazon’s vendor managers prioritise large, high-volume brands; smaller vendors are being culled. (In late 2024, Amazon even terminated many vendor accounts under $1M-$5M in annual sales as part of a cost-cutting realignment(retailbrew.com), encouraging those brands to shift to 3P.) This trend means getting a vendor account for expansion isn’t guaranteed. Some companies resort to creative methods like acquiring a dormant local vendor account or using a third-party as the vendor of record – but Jérôme advises caution with such approaches, calling them “shady and risky.” If Amazon isn’t willing to onboard you as a vendor in a target market, the Seller Central route or a hybrid strategy might be your only option.
- ⚠️ Pricing Conflicts and Brand Equity: If your product already has an active 3P reseller ecosystem in a country, introducing Amazon as a first-party vendor can spark price wars. Amazon’s retail pricing algorithms are aggressive – they will follow the lowest price on the market to win the buy box. Jérôme warns that if your item is offered by many sellers (say, through gray-market imports) and there’s downward price pressure, a vendor offer will just accelerate the race to the bottom. Amazon as a seller will drop prices to compete, forcing others down further. Your brand’s value perception can erode quickly. “If you see the market is very complex, with a lot of people selling and pricing issues, and the face value of your products is very important to you,* don’t go on the vendor system,” Jérôme advises.* In such scenarios, you may be better off first cleaning up distribution or using Seller Centra,l where you can set a price floor via Minimum Advertised Price (MAP) enforcement.
The overarching theme is control vs simplicity. Vendor Central hands over control to Amazon – which simplifies operations but introduces business risk. Successful global vendors mitigate these risks by planning thoroughly: aligning regional pricing, selecting reliable logistics partners, and maintaining close communication with Amazon’s retail team. It’s also wise to monitor your vendor account metrics (fill rates, chargebacks, lead times) diligently across all markets, as missteps abroad can jeopardise your relationship just as at home. Expanding with Vendor Central is a bit like letting Amazon drive the bus – you need to be comfortable with their direction and ready for a fast ride!
Vendor or Seller? How to Choose the Right Model for Global Growth
Given the pros and cons, how do you decide between Vendor Central and Seller Central for international expansion? The answer hinges on your strategic priorities and market conditions. Here’s a framework (inspired by Jérôme’s advice) to guide your decision:
- Define Your Expansion Goals: Start with your why. Is your primary objective to maximise sales quickly, even if margins are thinner? Or is it to build a premium brand presence carefully and maintain pricing power? Are you expanding due to pressure from competitors, or to support existing distribution partners? For instance:
- If you need fast market penetration and have revenue targets to hit ASAP, Vendor Central’s instant reach and Amazon-driven sales might align with your goal.
- If brand integrity, pricing consistency, or testing a market gently are top goals, Seller Central offers more control to execute that strategy.
- “There’s no universally right answer – only a right answer for your company’s strategy,” Jérôme emphasises. “If you don’t have a strategy, Amazon has one for you – and you don’t want it.” Have a clear vision of what success looks like in the new market (and what pitfalls you must avoid).
- If you need fast market penetration and have revenue targets to hit ASAP, Vendor Central’s instant reach and Amazon-driven sales might align with your goal.
- Audit the Market Landscape: Evaluate the target marketplace for your products on Amazon:
- Market Size & Demand: How big is the opportunity (in terms of search volume and competitor sales)? Use tools or Amazon’s category data to estimate the sales potential. If the pie is large and growing, a Vendor Central approach could capture share rapidly. If it’s niche or uncertain, you might prefer a cautious Seller launch to test the waters.
- Competitive Intensity: How many sellers are offering your products (or similar ones) already? If unauthorised sellers or price undercutting are rampant, introducing a vendor offer could trigger even more price competition. Alternatively, if the field is clear and your brand is strong, Amazon as a retailer could help dominate the market.
- Retailer Relationships: Do you have existing distribution in the country that an Amazon 1P offer would conflict with? If yes, consider whether to partner with that distributor to supply Amazon (indirect vendor model) or hold off on Amazon to avoid straining the relationship. Sometimes brands let a distributor handle Amazon sales initially (even via a Vendor Central account in the distributor’s name) to keep channels aligned.
- Market Size & Demand: How big is the opportunity (in terms of search volume and competitor sales)? Use tools or Amazon’s category data to estimate the sales potential. If the pie is large and growing, a Vendor Central approach could capture share rapidly. If it’s niche or uncertain, you might prefer a cautious Seller launch to test the waters.
- Run the P&L Numbers: It’s critical to compare the financial outcomes of each model for your specific product mix:
- Calculate your net margin if selling via Vendor (wholesale price minus cost of goods and any vendor allowances or fees). Remember, Amazon will expect a wholesale discount typically 8-10%+ lower than retail price, and may also require funding for promotions or chargebacks for infractions.
- Calculate your margin via Seller (retail price minus FBA fees, referral fees, advertising, etc.). Seller fees are usually ~15% referral + fulfillment costs, which at low price points can significantly eat into profit.
- Generally, low-priced items (e.g. <$15) tend to fare better on Vendor Central because the fixed fulfillment fees on Seller Central would be too high a percentage. Higher-priced items (>$20) often can achieve better margin on Seller, since you keep the retail markup(bebolddigital.com). But this is not a hard rule – it depends on your exact costs and Amazon’s expected terms. Do the math for each major SKU or category.
- Factor in operational costs too: Seller Central might require hiring or outsourcing FBA logistics, customer service for each country, etc., whereas Vendor Central might involve higher trade spend or compliance costs. Include those in your analysis of profitability.
- Calculate your net margin if selling via Vendor (wholesale price minus cost of goods and any vendor allowances or fees). Remember, Amazon will expect a wholesale discount typically 8-10%+ lower than retail price, and may also require funding for promotions or chargebacks for infractions.
- Consider Hybrid Approaches: Who says you must choose one or the other? Many brands adopt a hybrid model: for example, using Vendor Central in certain markets and Seller Central in others, or even having some product lines on 1P and others 3P. A hybrid can let you play to each model’s strengths. You might launch in a smaller or test market via Seller Central (to learn the ropes and gauge demand), while leveraging Vendor Central in a core market where you need scale and have Amazon’s support. Or keep premium, high-margin products in your own Seller control, but supply high-volume commodity products through Vendor. Amazon doesn’t prohibit having both a vendor and seller account – though you should manage them carefully to avoid direct competition on the same ASIN. The webinar guest suggested that even if you prefer Vendor Central, it’s wise to have a Seller account “as a backup”, given the unpredictability of Amazon’s decisions. Recent trends show Amazon trimming its vendor roster and inviting affected brands to switch to 3P(retailbrew.com), so being prepared with Seller Central experience is a form of insurance.
In summary, match the model to your strategy and the market. If you decide on Vendor Central, go in eyes open: align your internal pricing across regions, ensure stock availability to feed Amazon’s demand, and be ready for less visibility. If you choose Seller Central, be prepared to invest time and resources into each new marketplace for registrations, fulfillment, and optimization. And remember – you can always start with one model and pivot to another as conditions change. The key is to remain flexible and keep the long-term brand value in focus. As Jérôme noted, “The power that retailers once had is now in the brand’s hands. I wouldn’t give that away to anyone else.” In other words, use the model that empowers your brand’s success, rather than one that undermines it.
Getting Started: Tips for Launching Internationally via Vendor Central
Let’s say you’ve weighed the factors and decided to leverage Vendor Central to go global – how should you proceed to set yourself up for success? Here are some actionable steps and tips:
- ✅ Secure a Vendor Account (or a Partner) in the Target Region: If you’re not already a vendor in the marketplace you want to enter, talk to your Amazon category manager or reach out through Amazon’s vendor onboarding contact (if available). Emphasise your brand’s demand and what makes it a good fit. Invitations are scarce, so having a track record of strong sales in another region (or a unique product line) can help. In some cases, Amazon might invite you to programs like the Amazon Global Selling program or connect you with a regional vendor manager if they see high customer interest. If Amazon access is a dead end, consider partnering with an established local distributor or agency who has a Vendor Central account. For example, some agencies (like e-Comas and others) offer “agency 1P” services – they act as the vendor of record and list your products via their account, handling the Amazon relationship for you. This can be a shortcut to get started in a new country while you work on a longer-term solution.
- ✅ Align Logistics and Inventory Beforehand: Plan out how you will fulfill Amazon’s purchase orders in the new market. Do you need to send a bulk shipment to Amazon’s warehouse to initiate the relationship? (Often, Amazon will expect a first order delivery to happen locally. You might coordinate a bulk import of stock to a 3PL or to Amazon Distribution if offered.) Ensure product compliance for the local market – this includes labelling (language requirements, safety marks), documentation (e.g. EU CE certificates, local regulations), and packaging translations if needed. Amazon may not guide you on this upfront, but as the manufacturer, you remain responsible for compliance. Being ready on these fronts will make your expansion smoother and help avoid last-minute fire drills when the first PO arrives.
- ✅ Use Amazon’s Tools for Global Vendor Management: Amazon provides some programs that facilitate cross-border expansion for vendors. For instance, the Amazon Global Logistics (AGL) service can pick up containers from your factory and deliver to international Amazon fulfillment centers, even buying on FOB terms. (Jérôme mentioned this is possible, though it requires careful coordination and isn’t always as “simple” as Amazon markets it.) Additionally, Pan-European promotions and brand content management can be done through unified tools – you can often submit one set of A+ Content and roll it out to multiple locales (with translations). Leverage Amazon’s support teams to understand what can be replicated versus what needs separate handling in each country.
- ✅ Monitor Performance and Tweak Strategy: Once you launch, treat the new market vendor account with the same rigour as your home account. Watch key Vendor KPIs: purchase order fill rate, on-time delivery, vendor lead time, and chargeback rates. Early on, you might discover hiccups (e.g., longer customs clearance causing late deliveries) that you need to address. Optimize your operations to hit Amazon’s requirements or negotiate exceptions if needed. Also, pay close attention to sell-through data (what Amazon is selling to consumers) via any available reports or third-party tools. This can illuminate which countries are picking up demand, especially if Amazon is redistributing your stock across borders. If you find, say, Germany is driving most sales, you might decide to open a direct vendor account in Germany to gain more insight and control there, rather than feeding it through another country’s account.
- ✅ Maintain Price and Policy Discipline: Just because Amazon is the retailer doesn’t mean “set it and forget it.” Keep an eye on your retail pricing on Amazon in each market. If Amazon’s price drops too low (and threatens your brand’s positioning), you may need to revisit your terms or distribution strategy. Some vendors set a unilateral pricing policy (UPP) or MAP and only supply Amazon if those conditions are respected. While Amazon famously says they are a “price follower, not a price setter,” in reality, their algorithms will follow the lowest marketplace price swiftly. So if you see unwanted price movements, investigate the cause – it could be a competing seller or Amazon reacting to a currency difference. Take action by addressing unauthorised sellers or adjusting your wholesale price to encourage a healthier retail price. Remember, global expansion is not just about volume, but profitable and sustainable volume.
- ✅ Leverage Analytics and Automation: Managing multi-country vendor operations can get complex. This is where using analytics tools can add a lot of value. Consider employing a dashboard or analytics solution (such as MerchantSpring’s Vendor Analytics platform) to aggregate your Amazon data across regions. These tools allow you to gauge sell-in and sell-out performance in one view, monitor inventory health by country, and even detect when Amazon is sourcing from third-party competitors. By having a clear data picture, you can make timely decisions – like when to send more stock to Europe, or which product lines to push with Amazon’s marketing, etc. Automation can help too: for example, setting up automated reports and alerts for low stock or for when Amazon’s PO falls below forecast. This ensures you respond quickly to changes, which is crucial when you’re managing from afar.
By following these steps, you’ll be better prepared to launch internationally on Vendor Central and scale up smoothly. Many brands have successfully expanded their Amazon footprint to dozens of countries using the Vendor model – but they all emphasize the importance of planning, monitoring, and adapting continuously. Now, with the groundwork laid, let’s peek at what the future might hold for Amazon’s vendor program and how that could impact global sellers.
The Future of Amazon’s Vendor Program and Global Expansion
The Amazon ecosystem is constantly evolving, and strategies that work today may need adjustment tomorrow. What trends and changes should Amazon agencies and brands watch in the context of Vendor Central and international expansion? Our experts shared a few noteworthy insights:
- Amazon’s Selective Vendor Scaling: Amazon has been streamlining Vendor Central to focus on fewer, larger vendors. As mentioned, they’ve cut many smaller vendors and made it harder to join. We can expect this trend to continue into 2025 and beyond: Amazon will likely reserve Vendor Central for brands with high demand, unique products, or strategic value to Amazon’s catalog. If you’re a niche or emerging brand, this might mean Seller Central will be your main avenue for global growth by necessity. Vendors should also prepare for more automated interactions – Amazon might reduce direct vendor manager support over time (to save costs) and rely on algorithms and self-service tools even for big vendors. In short, the vendor program might get leaner, and any brand not meeting Amazon’s volume/profit thresholds could be nudged to 3P. It’s wise to maintain a agile mindset (and possibly a hybrid selling ability) in case Amazon’s stance on your account changes.
- New Amazon Marketplaces Opening: Global expansion opportunities are expanding as Amazon enters new countries. In the past couple of years, Amazon launched marketplaces in Sweden, Poland, Egypt, Belgium, and most recently South Africa (in 2024)(marketplacepulse.com). South Africa was Amazon’s first sub-Saharan market, bringing the total number of Amazon country marketplaces to 22. Future launches in other African, Asian, or Latin American countries are likely on the horizon (Amazon has expressed interest in Nigeria, Chile, and others(marketplacepulse.com)). For vendors, new marketplaces often mean a window of easier access – Amazon may be more willing to invite vendors during the early phase of a country launch to quickly build assortment. If your brand has a presence or appeal in a region Amazon is entering, be ready to seize that opening. Getting in as a vendor early can establish your brand as a category leader before competition grows. Just remember that new markets can come with uncertainties (logistics kinks, lower initial demand, etc.), so balance the opportunity with patience.
- Rise of Competitors and Alternatives: Amazon is huge, but it’s not the only player in global e-commerce. Competitors like Walmart (including Flipkart in India), Alibaba/AliExpress, Shopee, and newer entrants like Temu are vying for international sellers’ attention. Jérôme mentioned he’s watching the Temu and Shein model closely – ultra-aggressive marketplaces that have started expanding globally and could pressure Amazon. For brands, this means two things: diversification and negotiation leverage. Diversification – you might consider expanding to other marketplaces beyond Amazon as part of your global strategy, to not put all eggs in one basket. Negotiation leverage – if Amazon knows you have alternatives, it can sometimes make them more flexible with terms (though Amazon’s love for automation might limit this). Also, if antitrust pressures mount on Amazon, we could see them forced to be more seller-friendly or even spin off parts of their marketplace. It’s speculative, but the takeaway is to stay informed and agile. What if Amazon changes fee structures or merges Vendor and Seller programs someday? Scenario planning for various futures will help your global strategy remain resilient.
- Technology and Data-Driven Selling: The future will also bring more tools to make global selling efficient. AI-driven translation and localisation might make listing products in 10 languages easier than ever. Amazon’s own expansions of the Build International Listings (BIL) tool indicate an effort to streamline multi-country selling (mostly for 3P sellers today). For vendors, Amazon is improving features like brand analytics and demand forecasting on a global scale. We anticipate better insights into cross-country sales (perhaps Amazon will eventually show a unified vendor manufacturing view that’s truly useful). Automation of reporting and predictive analytics (as offered by platforms like MerchantSpring) will become standard practice – the brands that utilise these will spot opportunities or issues faster, gaining an edge. In essence, the operational gap between Vendor and Seller may narrow as Amazon provides more parity in data and programs across both. Smart brands will leverage all available tech to optimise inventory flows, marketing spend, and profitability in each market.
In conclusion, the Amazon vendor landscape is dynamic. By keeping an eye on Amazon’s policies, being ready to adapt your selling model, and using data to drive decisions, you can turn global Amazon expansion into a major growth driver for your brand, rather than a risky gamble.
Conclusion: Taking Your Amazon Expansion to the Next Level
Global expansion through Amazon Vendor Central is a journey filled with both opportunity and complexity. To recap, Vendor Central can fast-track your international growth with simplified logistics, broad reach, and a continuation of your wholesale model. It’s an attractive path for brands that need scale without reinventing the wheel in each country. But it requires careful navigation of its challenges – loss of control, margin considerations, and Amazon’s own gatekeeping. The decision between Vendor Central and Seller Central for expansion ultimately boils down to your brand’s strategy, resources, and tolerance for Amazon’s rules of the road.
The experts agree on one thing: doing nothing is not an option if you aim to be a global brand. Amazon’s marketplaces around the world represent hundreds of millions of customers. With 20+ marketplaces (and counting) on the platform, a world of opportunity awaits those who plan and execute wisely. Whether you go 1P, 3P, or hybrid, make sure you base your approach on data and clear objectives.
Is your brand ready to take the next step? If you found these insights useful, there’s a lot more to learn. Watch the full webinar replay for an in-depth discussion and real examples of vendor expansion strategies (you’ll catch nuances we couldn’t fit in this article). And don’t forget to subscribe to our newsletter for monthly Amazon strategy tips and industry updates – stay ahead of the curve as Amazon evolves.
Finally, if you need a partner on this journey, we’re here to help. MerchantSpring’s platform can provide the analytics and reporting edge you need to manage multiple Amazon markets with ease, and our team has helped many brands navigate 1P vs 3P decisions. Book a demo with MerchantSpring to see how our Amazon Vendor dashboards can illuminate your global performance and pinpoint areas to optimize. We’ll help you turn those international ambitions into a concrete, profitable reality.
Let’s make your brand a Marketplace Master on a global scale!
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