Should You Still Use Amazon Vendor Central in 2025?

Is Amazon Vendor Central still a part of your business in 2025? Maybe it shouldn’t be.

This is one of the hottest talking points as we move into 2025 and one we regularly get from brands and businesses navigating Amazon’s ever changing ecosystem. In this video, I share my own perspective on Vendor Central, the challenges its presents, and why a hybrid model might be the best solution for many businesses moving forward.

What is Amazon Vendor Central?

Vendor Central is Amazon’s one-purchase model, where brands sell their products directly to Amazon, and Amazon retails them. It’s a very different approach compared to Seller Central, where brands control their listings, pricing and customer relationships. Historically, Vendor Central was the go-to for major brands, but Seller Central has now overtaken it, representing about 60% of the marketplace. This shift is forcing many businesses to rethink their strategy.

Challenges with Vendor Central

Let’s address the elephant in the room. Vendor Central simply isn’t what it used to be. Amazon is moving away from this model and those brands relying on Vendor Central are starting to feel the pinch. The main issues include:

• Pricing Control: Amazon dictates retail prices which can clash with multi-channel pricing strategies.
• Labour-Intensive Management: Vendor Central often requires more resources to manage effectively.
• Limited Support: Vendor managers are becoming harder to access, with some brands needing revenues of $10 million+ to secure one.
• Rising Costs: Amazon finds Vendor Central costly to operate which again, is pushing more brands toward Seller Central.

For many, these challenges make Seller Central a more appealing option.

The Hybrid Model: A Flexible Solution

One solution I’ve seen work exceptionally well is the hybrid model. This approach combines Vendor and Seller Central, allowing brands to leverage the strengths of both. For example, you can keep high-performing products on Vendor Central while transitioning underperforming or unsupported items to Seller Central. This gives you flexibility but above all else, it ensures you’re maximising revenue across all product lines.

Is the Hybrid Model Right for You?

Unfortunately, the hybrid model isn’t a one-size-fits-all solution and won’t be suitable for everyone, but we find it does work well for the vast majority. There are a few things to consider, however…

• Check Margins: Compare your fulfilment costs and margins between FBA and Vendor terms.
• Assess Vendor Support: If you have active vendor managers, it might make sense to negotiate better terms rather than moving away completely.
• Product Suitability: Certain products with high returns or low volume may be better suited for Vendor Central.

Brand Control: With brand registry now available on both platforms, you can maintain content consistency across Vendor and Seller accounts.

What can we take away from all this?

So, is Amazon Vendor Central dead? The short answer is No, but it’s evolving. Vendor Central is becoming a platform reserved for blue-chip brands with massive revenues, while Seller Central continues to grow as the primary driver for brand and sales growth. For most businesses, a hybrid model offers the perfect balance of both which gives you flexibility AND scalability.

If you’re considering your options or want to explore how a hybrid model can work for your business, get in touch with us at Ecommerce Intelligence. For more insights like these, subscribe to our channel and check out my other videos. Let’s take your Amazon strategy to the next level.