Table of Contents
Are you unsure what the difference is between Amazon vs Amazon Marketplace?
Maybe you’ve heard people talk about Amazon Marketplace and want to know – what is Amazon Marketplace? How is it different from Amazon?
No matter the reason that brought you here, we have the answers for you in this Amazon vs Amazon Marketplace guide.
Figuring out the difference between Amazon vs Amazon Marketplace can be tricky, especially if you’ve never used them before.
Let me guess…you’ve searched online for guidance but have been met with page after page of confusing and contradictory information.
How do you know who to trust and where to turn? How do you find out the difference between them now?
Well, that’s what I’m here for! I’m going to dive into both Amazon vs Amazon Marketplace.
Keep reading to find out everything you need to know – What is the difference between Amazon and Amazon Marketplace?
Quick Summary
- Amazon and Amazon Marketplace are both eCommerce platforms owned by Amazon and offer different services.
- Amazon Marketplace is great for buyers who want to list new or used items, and Amazon is best for new items only.
- When you buy something through Amazon Marketplace, a portion of the sale goes to the seller and Amazon.
What Is Amazon?
Amazon.com is a leading eCommerce website that I’m sure you’ve heard of.
The website sells everything from shoes to rabbit hutches, and everything in between!
In fact, Amazon represents nearly 50% of all eCommerce sales, just in the US alone!
They sell over 12 million products with all profits going directly to Amazon.
These products are packaged and shipped by Amazon, with many of them arriving the next day thanks to their Prime service.
Read more: How to sell digital products?
What Is Amazon Marketplace?
Amazon marketplace is found within Amazon.
It’s an eCommerce platform that allows third-party sellers to sell their products on Amazon and is entirely integrated with Amazon.
This is awesome, as it means there are no messy integrations!
How To Buy On Amazon Marketplace?
For shoppers, it appears as if they are always shopping with Amazon directly.
This is because the entire purchasing and checkout experience is completed on Amazon’s domain.
However, the difference between Amazon vs Amazon Marketplace lies when you purchase an Amazon Marketplace product.
Amazon takes a portion of the sale, the rest going to the third-party seller (instead of the whole profit going to Amazon).
Third-party sellers can sell new and used items on Amazon Marketplace.
And if you’re lucky, they might even be a cheaper than those sold directly by Amazon, especially used products!
I know what you’re thinking…how can I tell which products are sold through Amazon Marketplace?
Well, it’s quite simple.
When you click on the item you want to buy, next to the Add to Cart button, you’ll see some text:
- You should see a ‘Ships from’ section and a ‘Sold by’ section.
- For items sold by a third party, their company name or personal name will be in the ‘Sold by’ section.
- Their name might also be in the ‘Ships from’ section.
When Amazon sells the item, it will be listed next to the ‘Sold by’ section.
Okay, so that’s how you can buy on Amazon Marketplace.
But what about selling products?
How Can You Sell Products On Amazon?
Third-party sellers have two options when selling on Amazon:
Let’s take a closer look at these options now.
Amazon Seller Central
Basically, Amazon Seller Central lets you sell your products directly to shoppers, and you’ll share a portion of your profits with Amazon.
This is an exchange for listing them on Amazon.
For context, most third-party sellers will sell their products with Amazon Seller Central.
You can manage your inventory and fulfillment yourself, or you can outsource it to Amazon through the Fulfilled by Amazon (FBA) program.
With FBA, Amazon sellers will ship their inventory to one of Amazon’s fulfillment centers.
And Amazon takes care of everything from there!
You don’t have to worry about sending order confirmations to customers, packing the products, and shipping them out to customers.
There are a few benefits to using Amazon Seller Central, listed below.
- Prime Eligibility: FBA products are eligible for Prime shipping, making your products more attractive to Prime members. (Prime customers spend more than double what non-Prime members spend).
- More Sales: Selling your products with FBA will increase your sales from 30 to 50%. They’re also given preference in Amazon’s algorithm, boosting visibility for your products
- Amazon Customer Service: Amazon will handle all of your customer service too, saving you time and money!
There are no costs for selling on Amazon, regardless if you use the FBA program or not.
Amazon Vendor Central
With Amazon Vendor Central, you can sell your products directly to Amazon at wholesale rates.
Amazon will then sell your products, keeping the profits from themselves.
This is an invite-only program that is used by manufacturers and wholesalers.
When deciding to sell on Amazon, familiarize yourself with both Amazon Vendor Central and Amazon Seller Central to decide which is the better option for you.
As we mentioned earlier, most sellers choose to use Amazon Seller Central.
Basically, if you’re not selling to Amazon as a wholesaler, then Amazon Seller Central is your best choice.
Amazon Vs Amazon Marketplace – What Is The Difference?
There are a few differences between Amazon vs Amazon Marketplace.
Let’s take a look at these below:
Amazon vs Third Party Sellers
Amazon is an eCommerce website where anything sold directly through Amazon is owned by Amazon.
Amazon Marketplace is a platform that allows third-party sellers to sell their products on Amazon.
Over 12 million products are sold on Amazon every year. When you factor in Amazon Marketplace sales, the number jumps to over 3 billion!
New vs Old Products
Products sold on Amazon are always new unless you are purchasing returned items.
With Amazon Marketplace, the products sold by third-party sellers can be new or used.
Who Gets The Money?
When a purchase is made through Amazon, Amazon gets all of the money.
With Amazon Marketplace, the third-party seller will get a portion of the sale and Amazon will also get a portion of the sale.
Want to know more? Read my 21 business ideas that require no money in 2023 article here!
Final Thoughts
And there you have it, that’s everything you need to know about Amazon and Amazon Marketplace!
While Amazon Marketplace exists on Amazon, they are different.
Amazon Marketplace allows third-party sellers to sell their products on Amazon, both new and used.
Amazon will ship these products for you, taking care of all interactions with customers , but they take a share of the profits.
Amazon Marketplace provides sellers with access to the largest eCommerce platform.
As an Amazon Marketplace buyer, you can spot easily whether items are sold by a third-party seller or not.
You can then decide whether you will buy the item from marketplace sellers or not!
I hope you are now able to identify the differences between Amazon vs Amazon Marketplace.
Thanks so much for reading.
Frequently Asked Questions
What Makes Amazon a Marketplace?
Amazon Marketplace allows third-party sellers sell their new or used products, targeting a different audience than Amazon.
Why Choose Amazon vs Other Marketplaces?
Amazon is well-known and credible, focusing on excellent customer service, quick shipping, and seamless returns.
How Do You Know If Something Is From Amazon Marketplace?
When purchasing your product from Amazon Marketplace, you’ll see a ‘Ships from’ and ‘Sold by’ section with the Amazon Marketplace seller name and details.
