Home eCommerce Amazon Vs Amazon Marketplace – What Is The Difference?

Amazon Vs Amazon Marketplace – What Is The Difference?

by Stewart Gauld
Last updated on July 24th, 2023
Amazon Vs Amazon Marketplace (2023) – What Is The Difference?

Are you unsure what the difference is between Amazon and Amazon Marketplace?

Maybe you have heard people talking about Amazon Marketplace and want to know how it’s different from Amazon?

Or are you curious and want to know more? No matter the reason that brought you here, we have the answers for you!

Amazon vs Amazon marketplace

Finding out the difference between Amazon and Amazon Marketplace can be tricky, especially if you have never used them before. You head online for guidance but are 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 is where we come in!

Today, we are here with the differences between Amazon and Amazon Marketplace.

Keep reading to find out everything you need to know about Amazon and Amazon marketplace. 

What Is Amazon?

Amazon homepage

Amazon.com is a major e-commerce website that we have all used before! The website sells everything from shoes to rabbit hutches, and everything in between! These days, Amazon represents nearly 50% of all e-commerce sales, just in the US!

They sell over 12 million products directly through Amazon, all of these are new with the 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 homepage

Amazon marketplace is a part of Amazon. It is an e-commerce platform that allows third-party sellers to sell their products on Amazon. Amazon Marketplace is entirely integrated with Amazon.

For shoppers, it appears as if they are always shopping with Amazon directly. The entire purchasing and checkout experience is completed on Amazon’s domain. However, when you purchase an Amazon Marketplace product, Amazon takes a portion of the sale, the rest going to the third-party seller.

Third-party sellers can sell new and used items on Amazon Marketplace. They might sometimes be a cheaper option than those sold directly by Amazon, especially the used products.

You can tell what products are sold through Amazon Marketplace easily. When you click on the item you want to buy, next to the Add to Cart button, you will see some text.

You will 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, or it will say Amazon.

When Amazon sells the item, it will be listed next to the ‘Sold by’ section. 

How Can You Sell Products On Amazon?

How can you sell products on Amazon_

Third-party sellers have two options when selling on Amazon. You can sell through Amazon Seller Central or Amazon Vendor Central. Let’s take a closer look at these options now.

Amazon Seller Central

Amazon Seller Central, you can sell your products directly to shoppers. You will share a portion of your profits with Amazon in exchange for listing them on Amazon. 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.

Amazon takes it from there, 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, so this is an attractive benefit.
  • More Sales: selling your products with FBA will increase sales from 30 to 50%. They are 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

Sellers with Amazon Vendor Central, you can sell your products directly to Amazon at wholesale rates. Amazon will 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. If you are not selling to Amazon as a wholesaler, then Amazon Seller Central is your preferred option.

Read more: How to start a business with no money in 2023

Amazon Vs Amazon Marketplace – What Is The Difference?

Amazon vs Amazon Marketplace what is the difference_

There are a few differences between Amazon and Amazon Marketplace. We have summarized them below for you to check out. 

What Is It?

Amazon is an e-commerce 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!

Are Products New Or Used?

Products sold on Amazon are always new unless you are purchasing returned items. These are often found in the outlet section of Amazon. 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. When a product is purchased through Amazon Marketplace, the third-party seller will get a portion of the sale. 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, 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 too. They take a share of the profits for this, freeing you up to work on creating new products and listing items on Amazon.

Amazon Marketplace provides sellers with access to the largest e-commerce platform, providing you with access to potential customers that you would not get on any other platform.

For buyers, you can spot easily whether items are sold by a third-party seller or not, by checking the sections under the product listing to see who is selling and shipping the item.

You can decide whether you will buy the item from marketplace sellers or not, sometimes saving you money and allowing you to support a business!

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