This article breaks down the general Amazon processes for B2B and DTC in Vendor Central, then explains how SKUPREME enhances and streamlines these workflows through its internal systems.
Amazon Vendor Central offers two primary fulfillment models for brands: B2B (business-to-business) wholesale selling to Amazon’s retail, and DTC (direct-to-consumer) fulfillment (also called Direct Fulfillment or drop-shipping) where vendors ship directly to the end customer on Amazon’s behalf.
B2B vs DTC in Vendor Central
In B2B (wholesale) mode, Amazon essentially becomes your customer – they purchase your products in bulk via purchase orders, you ship inventory to Amazon, and Amazon then sells those products to consumers. It’s often called a 1P (first-party) relationship. Amazon issues purchase orders (POs) based on demand forecasts, and you fulfill those POs to keep Amazon’s warehouses stocked. In this model, your transaction is with Amazon (a B2B sale), and Amazon handles the final B2C sale to shoppers.
In DTC (direct-to-consumer) mode under Vendor Central – officially known as Vendor Central Direct Fulfillment – you as the vendor ship orders one-by-one directly to Amazon customers, but under Amazon’s branding. In other words, Amazon forwards individual customer orders to you instead of ordering bulk stock. You fulfill each order to the end consumer, using Amazon-provided shipping labels and adhering to Amazon’s packing guidelines, so the package appears “Sold by and Shipped from Amazon” to the customer. Amazon still handles customer service and charges the customer, but you handle the physical fulfillment. This is Amazon’s drop-ship program for vendors , allowing vendors to leverage Amazon’s massive customer base while retaining control of their own inventory and shipping.
Both models operate through the Vendor Central portal but have different workflows, requirements, and benefits. Let’s dive into each process and then see how SKUPREME’s platform builds on them.
Amazon Vendor Central B2B Process (Wholesale to Amazon)
In the B2B Vendor Central workflow, Amazon acts as a retailer buying from your brand. The typical process goes through several stages:
- 1. Purchase Order Issued: Amazon’s systems generate a Purchase Order (PO) for your products. This can happen automatically on a schedule (e.g. weekly) based on inventory levels and forecasts, or via manual orders from Amazon’s buying team for special cases. The PO is a formal request with details on products, quantities, delivery window, and pricing. (Amazon Vendor Central is invite-only, so receiving POs means you’re an Amazon vendor partner.)
- 2. PO Confirmation: The vendor (you) must acknowledge and confirm the PO within 24–48 hours of receipt. In this step, you confirm product availability, the quantities you can ship (you may accept, reject, or partially accept a PO line), and that you can meet the requested ship/delivery window. Timely confirmation is critical to avoid auto-cancellation or vendor score penalties.
- 3. Order Fulfillment & Shipment to Amazon: Once confirmed, you prepare the shipment. This involves picking and packing the ordered products according to Amazon’s requirements. For Vendor Central, each unit typically needs an Amazon-specific barcode (e.g. an FNSKU label) and appropriate packaging. You often must follow Amazon’s routing instructions or carrier requirements. There are two freight arrangements:
- Collect: Amazon arranges pickup (you pay a freight allowance to Amazon).
- Prepaid: You arrange shipment to the Amazon fulfillment center.
In either case, you’ll generate an ASN (Advanced Shipment Notification) in Vendor Central detailing what is being shipped (carton count, contents, carrier info). Then you ship out the order to the designated Amazon warehouse.
- Collect: Amazon arranges pickup (you pay a freight allowance to Amazon).
- 4. Amazon Receiving & Payment: Amazon receives the delivery at their fulfillment center and checks it against the ASN. They verify quantities and compliance (any missing items, late delivery, or packaging issues can trigger chargebacks/fees). Once Amazon receives and stocks the products, they become available for customers on Amazon.com. Amazon will then pay you according to your Vendor terms (typically Net 60 or Net 90 days payment terms for the PO). At this point, the cycle is complete: Amazon now owns the inventory and will fulfill customer orders directly from its warehouse stock.
Figure: Amazon Vendor Central B2B process – Amazon issues a wholesale Purchase Order to the vendor; the vendor confirms and ships inventory to Amazon; Amazon receives the stock and sells to end customers.
This wholesale model simplifies the direct customer interactions for the brand (Amazon handles that), but requires strong supply chain reliability. Vendors must manage POs and shipments efficiently to keep Amazon stocked and avoid issues like stockouts or chargebacks for non-compliance. Key best practices for Vendor Central B2B include monitoring forecasts and POs closely, maintaining optimal inventory to meet POs, and ensuring all labeling and shipping guidelines are followed .
Amazon Vendor Central DTC Process (Direct Fulfillment)
Direct Fulfillment (DTC) via Vendor Central, the process looks quite different because each end-customer order is fulfilled by the vendor in real time, rather than Amazon holding stock. Here’s how a typical Amazon DTC order works:
- 1. Customer Places an Order on Amazon: The process kicks off when a customer buys one of your products on Amazon.com. They see it listed as usual, often marked as “Ships from and sold by Amazon” (even though Amazon doesn’t have the stock on hand — because you’re in the Direct Fulfillment program).
- 2. Order Sent to Vendor: Instead of decrementing Amazon’s warehouse inventory, the Amazon system sends the order details to you, the vendor. This comes through the Vendor Central portal (under “Direct Fulfillment Orders”) or via integration (API/EDI). Essentially, Amazon is asking you to ship this one order on its behalf. The order will include the customer’s address and the shipping method, but note that in many cases Amazon will only provide full customer data on the shipping label itself for privacy . Amazon also generates a packing slip that includes Amazon branding to be included in the box.
- 3. Vendor Ships to Customer (Amazon-Branded): You (the vendor) pick and pack the product just like a regular D2C order, but you must use the Amazon-provided shipping label and follow Amazon’s packing guidelines. Amazon’s systems will provide you a prepaid shipping label (using Amazon’s carrier accounts) for the shipment. You print the label and the Amazon-branded packing slip and ship the package directly to the customer. The packaging shows Amazon as the sender – for example, the return address might be an Amazon address or your warehouse c/o Amazon, and the slip indicates the item was sold by your brand via Amazon. From the customer’s perspective, they ordered from Amazon and got an Amazon package, but you actually fulfilled it from your warehouse.
- 4. Confirmation & Delivery: After handing the package to the carrier, you typically need to confirm the shipment in Vendor Central (or via API) so Amazon knows it’s on the way. In fact, Amazon requires that you confirm the order shipment immediately after carrier pickup . Amazon then sends the shipment confirmation and tracking to the customer (Amazon handles all customer communication about the order). The item is delivered to the customer, completing the order. Amazon will then pay you the wholesale cost of the item (minus any fees) as per your Vendor agreement, since this was effectively a sale to Amazon (even though you shipped it).
Amazon Direct Fulfillment (DTC) process – A customer’s Amazon order is forwarded to the vendor; the vendor packs and ships the item directly to the consumer using an Amazon label; the customer receives an Amazon-branded delivery.
This DTC model lets Amazon offer a wider selection or leverage vendor inventory without holding it in stock. It is ideal for products that are bulky, slow-selling, or otherwise not stocked in Amazon’s warehouses. However, it puts more onus on the vendor to act like a drop-shipper: you need the capability to fulfill single orders quickly, meet Amazon’s ship-by and delivery SLAs, and adhere strictly to Amazon’s labeling and packaging requirements to avoid penalties. It effectively combines B2C speed with B2B compliance complexity.
Key differences from B2B: In Direct Fulfillment, you’re dealing with many small shipments instead of bulk pallets. Every order must be individually packed and labeled, and any delay or mistake affects the end customer experience directly (which Amazon monitors closely via metrics like on-time shipment rate, order defect rate, etc.). On the flip side, you don’t have to send inventory in advance or store products at Amazon – you keep your stock until it’s sold, giving you more control over inventory and potentially lower storage costs.