Amazon vs Amazon Marketplace: Essential Differences You Need to Know

Have you ever wondered What is Amazon Marketplace? and how is it different from Amazon? In the world of e-commerce, Amazon always mentioned as a global "giant". However, many people are still confused between Amazon and Amazon Marketplace. Although coexisting on the same platform, these two models have clear differences in terms of operation, product types, sales fees as well as customer service. Understanding these important differences not only helps buyers have a better experience but also helps businesses optimize their business strategies, choose the right sales channels and increase profits.

In the following content, Hidemium will analyze in detail Difference between Amazon and Amazon Marketplace, and introduce options to help you maximize your sales potential on the platform.

1. What is Amazon?

Amazon.com is one of the world's largest e-commerce platform Here, users can buy almost any product – from clothes, shoes, electronic devices to even… rabbit cages.

In the US market alone, Amazon accounts for 50% of e-commerce sales, with more than 12 million products being sold. These products are packaged and shipped by Amazon, many orders can even be delivered the same day thanks to the Amazon Prime service - a factor that creates an outstanding competitive advantage for this platform.

1.1 Ways to sell on Amazon

To become a seller, Amazon offers three main programs: Amazon Vendor Central, Amazon Seller Central and Amazon Advantage.

a. Amazon Vendor Central

With Vendor Central, you sell directly to Amazon at wholesale prices. Amazon then lists the products on its website and keeps all the profits. This program is invite-only, typically large manufacturers or distributors.

b. Amazon Seller Central

This is the most popular option for third-party sellers. Through Seller Central, you can sell products directly to customers and share a portion of the profits with Amazon. Sellers can do one of two things:

• Self-manage orders and inventory

• Use Fulfillment by Amazon (FBA) service.

With FBA, sellers just need to send products to Amazon's warehouse. From there, Amazon will handle the entire process for you: order confirmation, packaging, shipping and customer care.

Benefits of selling via FBA:

• Prime Eligible: Your products are labeled Prime, making them more attractive to Amazon Prime members – a customer group that spends twice as much as regular users.

• Increase sales: Participating in FBA can help increase sales by 30% - 50%, and products are also prioritized for display in search results.

• Save time & money: Amazon handles all customer service, allowing you to focus on your core business.

c. Amazon Advantage

This is a consignment program specifically for media products like books, music, and DVDs. Sellers ship their products directly to Amazon, which then takes care of fulfilling the order and shipping it to the customer.

1.2 Cost of selling on Amazon

Whichever model you choose,selling on AmazonThe course comes with certain fees. The most important of which are:

• Referral Fee

• Fulfillment Fee if using FBA

Understanding the fee structure will help you be more proactive in calculating profits and business strategies.

>>> Learn more: 7 Ways to Make Money on Amazon by 2025

2. What is Amazon Marketplace?

Amazon Marketplace is an e-commerce platform that allows third-party sellers Post and sell products directly on the Amazon website. The system is fully integrated with Amazon, giving buyers a seamless experience without any hassle during the shopping process.

2.1 What is different about shopping on Amazon Marketplace?

For consumers, shopping online Amazon Marketplace There is almost no difference compared to buying directly from Amazon. The entire ordering, payment, and order confirmation process all take place on the same Amazon domain name, creating a sense of security and familiarity.

The difference is: when a product is sold through Amazon Marketplace, Amazon only collects a portion of the commission fee, while the profit goes to the third-party seller. As a result, you can find a wide variety of products, including new and used goods. In particular, the price may be cheaper than products distributed directly by Amazon.

2.2 How to identify products from Amazon Marketplace

To distinguish the above goods Amazon Marketplace, you just need to pay attention when accessing the product detail page. Right next to the button “Add to cart”, you will see the following items:

• “Shipped from”

• “Sold by”

If it is a third party product, the “Sold by” will display the store name or specific seller name. In the case of products distributed directly by Amazon, the information will be clearly stated as “Sold by Amazon”.

>>> Learn more: 17 Amazon SEO Tools to Help Your Products Stand Out and Increase Sales

3. Compare Amazon and Amazon Marketplace

In this section, we will explore the difference between Amazon.com and Amazon Marketplace – two concepts that are often confused but have distinct characteristics. Hidemium will analyze in detail 6 important differences to help you better understand these two platforms.

3.1. General features of the platform

Amazon and Amazon Marketplace are closely related, but they are still shaped in their own development directions.

Amazon's Highlights

Amazon started as a small online bookstore, but has now become the world's leading e-commerce and technology corporation. With a customer-centric strategy, Amazon continuously innovates technology, expands its global reach and builds a huge ecosystem serving millions of users.

In addition to retail, Amazon is also particularly successful with AWS (Amazon Web Services) cloud services. Among them, Amazon EC2 (Elastic Compute Cloud) and Amazon S3 (Simple Storage Service) are the most popular services, providing powerful computing infrastructure and flexible storage for businesses. Not only that, AWS also supports machine learning solutions, database management and many other advanced technologies.

In short, Amazon is both an online retailer and a global technology service provider, always prioritizing bringing the best shopping experience to customers.

Outstanding features of Amazon Marketplace

Unlike Amazon, Amazon Marketplace is a third-party e-commerce platform. This platform allows independent sellers to post products and reach customers directly through the Amazon system.

The special thing is that Amazon Marketplace focuses on sellers. Instead of selling products directly, the platform provides services to help sellers promote and distribute their goods for a fixed fee.

A notable number: third-party sellers now account for more than 50% of Amazon's total revenue. This proves that Amazon Marketplace is not just a supplement, but also is an important pillar in the global e-commerce ecosystem.

3.2. Products

When comparing Amazon and Amazon Marketplace, the product factor is a point that cannot be ignored. Basically, the product categories of both are almost the same, ranging from cosmetics, electronic devices to popular consumer goods. This allows Amazon to expand its market share and optimize revenue from many different customer groups.

However, there are some notable differences between the two channels:

• Amazon Retail Products: These are Amazon branded items, always guaranteed 100% new and most are eligible for the Amazon Prime program. Thanks to that, differentCustomers can not only be assured of quality but also enjoy special offers on prices and shipping services.

• Amazon Marketplace Products: Offered by third-party sellers, products may be new or used, as shown in the Amazon Product Guide. In additionIn addition, not all products on Marketplace are eligible for Amazon Prime benefits.

Another important point is that every product needs to have genuine UPC code to ensure transparency and support origin verification. If a product does not meet this standard, Amazon reserves the right to remove it from the platform.

👉 In summary, the above product Amazon Retail and Amazon Marketplace. There are many similarities, but the big difference is that Amazon's products are always 100% new, have clear branding, and prioritize Amazon Prime participation. Meanwhile, Marketplace offers more diversity, but the quality and benefits will depend on each seller.

3.3. Seller fees

In the process Compare Amazon and Amazon Marketplace, factors about seller fees is an important distinction that you need to be aware of.

Above Amazon.com, the seller has two service package optionsServices: Personal and Professional

• Personal Package: wiseg has a monthly subscription fee, but pays $0.99 per product sold.

• Professional Package: spend a flat fee of $39.99/month, but no commission is charged per order.

In addition to these two main fees, sellers may also incur advertising costs or other optional services. Notably, most stores on Amazon do not have to pay extra FBA fees, because the platform has built-in warehousing and shipping systems.

For Amazon Marketplace In addition to the registration fee, third-party sellers need to pay:

• Closing fee (applicable to media products);

• FBA fees when using the service;

• Referral fee/many other additional charges.

Compared to Amazon Marketplace, Amazon's fee structure is considered simpler and more cost-effective. Therefore, if considered solely from a financial perspective,hính, Amazon.com offers a distinct competitive advantage to sellers.

3.4. Inventory sources and management

One of the most important difference between Amazon.com and Amazon Marketplace located atinventory management.

• Amazon – Own and manage inventory directly

Amazon acts as aOnline retailers should have full control over the inventory management process. From importing goods to storing them.to delivery to customers, all are directly fulfilled by Amazon. Therefore, when shopping on Amazon.com, the products that users receive are often shipped directly from Amazon's warehouse system.

• Amazon Marketplace – Sellers manage their own inventory

In contrast, Amazon Marketplace does not directly own or manage products. It is simply a connecting platform, nHey third party seller responsible for all sourcing, warehousing, and distribution. Amazon Marketplace only provides the infrastructure and services to facilitate the buying and selling environment.

The difference here is clear: Amazon directly manages inventory, while Amazon Marketplace only acts as an intermediary platform for sellers.

3.5. Order completion and shipping

Aside from inventory, another important factor when comparing Amazon and Amazon Marketplace order fulfillment and shipping process.

• Amazon – FBA service and optimal shipping system

Amazon provides services FBA (Fulfillment by Amazon), which allows sellers to store their products in Amazon's warehouses and let Amazon handle all the packaging and shipping. In addition, Amazon also offers programs such as Seller-Fulfilled Prime and Amazon Easy Ship, supporting fast shipping, ensuring a convenient shopping experience. Some programs also allow eligible sellers to manage the shipping process themselves.

• Amazon Marketplace – Flexible Options for Sellers

Marketplace sellers can choose from multiple order fulfillment options: FBM (Fulfillment by Merchant)– self-fulfillment of orders; use of services 3PL (third party); or Hybrid Approach– combining both FBM and 3PL. This approach gives sellers more flexibility in optimizing costs and managing operations.

In the transportation stage,Amazon stands out with its FBA service and strong logistics network, while Amazon Marketplace offers a wide variety of choices for sellers.

3.6. Return policy and customer service

In the final part of the analysis series Amazon and Amazon Marketplace, we will focus on return policy and customer service– key factors that influence the shopping experience.

Amazon.com Policy

Amazon applies a transparent, user-friendly and fair return system. Each product group, from physical goods to digital products, has clear regulations. In addition, Amazon has a professional customer care team, always ready to support to ensure the highest satisfaction for buyers.

Amazon Marketplace Policies

Above Amazon Marketplace, the return process and customer service are managed directly by third-party sellers. They may add their own rules for each type of product. However, Amazon still offers a program A-to-Z Guarantee, which helps to quickly and fairly handle complex situations, protecting the rights of both sellers and buyers.

Both Amazon and Amazon Marketplace offer solutions for returns and customer service. However, service on Amazon.com is generally more consistent and professional, while Marketplace can vary in quality depending on the seller.

>>> Learn more: Effective Strategies to Increase Sales on Amazon

4. Conclusion

Through the analysis, it can be seen that Amazon and Amazon Marketplace. Although they operate on the same platform, there are distinct differences:

• Amazon Marketplace allows third-party sellers to list new or used products on the world's largest e-commerce platform.

• Amazon provides shipping, fulfillment, and customer service, but sellers need to share in the profits.

• Buyers can easily identify whether a product comes from Amazon directly or from a third party to make the right decision.

So, you can clearly distinguish Difference between Amazon and Amazon Marketplace to choose the safest and most effective shopping channel.

5. FAQ

1. Should I sell on Amazon Marketplace?

The answer is YES. Selling on Amazon Marketplace requires a lot of effort but brings great value. Many businesses have been successful thanks to having the right products, the right marketing strategy, and support from management tools and quality customer service. Despite fierce competition, the opportunity to grow and expand revenue on Amazon Marketplace is still very open.

2. Is Amazon Marketplace safe?

Amazon Marketplace is a trusted, secure, and highly secure platform. Buyers should pay directly through Amazon's official system to ensure transparent and protected transactions.

3. Why is Amazon Marketplace considered a “marketplace”?

Amazon Marketplace brings thousands of third-party sellers together on one platform. Customers have access to a wide range of products and can easily compare prices, bringing healthy competition and maximum benefits to buyers.

4. Why is Amazon Marketplace the ideal sales channel?

Amazon Marketplace has a huge customer base, comprehensive sales tools, flexible shipping methods and strong advertising opportunities. With quality products and the right business strategy, sellers can create a sustainable source of income and quickly expand their brand.

5. How does Amazon Marketplace reach customers differently than Amazon?

Marketplace allows sellers to offer both new and used products, expanding their customer reach and catering to a wider variety of needs than Amazon.

6. Why should you choose Amazon over other e-commerce platforms?

Amazon stands out thanks to its global reputation, professional customer service, fast delivery speed and transparent return policy. This is the reason why Amazon is always considered the top choice of both sellers and buyers.

7. How to identify products on Amazon Marketplace?

When purchasing, you just need to check the item “Delivery from” and “Sold by”. This information will clearly display the seller's name and help you easily distinguish whether the product comes from Amazon or Marketplace.