Vendor Central on Amazon India is the enterprise B2B model. Amazon India's vendor team places purchase orders based on demand forecasts, you fulfil into Amazon India's warehouses, and Amazon India takes over customer sales + returns + service. It's a fundamentally different economic model from marketplace โ trade higher price realisation for volume, stability, and ranking.
Marketplace vs Vendor Central โ Head-to-Head
| Dimension | Marketplace | Vendor Central |
|---|---|---|
| You own inventory | Yes | No โ Amazon India buys it |
| Commission / margin | 15% commission | 40-50% wholesale discount |
| Payment cycle | 7โ14 days (via Amazon Pay) | 7โ14 days (via Amazon Pay) (from PO ack) |
| Working capital | Yours (inventory tied up) | Yours + PO-basis |
| Returns handling | You bear cost | Amazon India bears end-customer returns |
| Ranking priority | Standard | Boosted (Amazon India's own inventory) |
| Setup timeline | 2โ15 days (Brand Registry) ยท 30โ45 days (Brand Store approval) | 4-8 weeks |
When to choose Vendor Central over Marketplace on Amazon India
- FMCG / grocery / quick-commerce โ Vendor Central is often the only path on quick commerce
- Volume > โน5Cr/year expected โ Vendor Central preferable
- Brand cannot handle end-customer returns โ Vendor Central shifts burden to Amazon India
- Category is oversupplied on marketplace โ Vendor Central gives ranking boost
- You want stable monthly revenue vs variable sales โ PO-basis is predictable
The Vendor Central negotiation levers
- 1Wholesale discount %Starts at 40-45%; negotiable to 30-35% for hero brands with proof of D2C demand.
- 2PO frequency + volumeWeekly / monthly POs. Higher-frequency = lower inventory risk for you.
- 3Returns liabilityStandard: 100% seller-borne for damage; negotiable to 50-50 for hero brands.
- 4Category placement + featuredVendor Central brands get preferential category-featured slots.
- 5MDF (Market Development Funds)Additional 3-8% of PO value can be negotiated for marketing/co-op advertising.
