Broker Models for Amazon: How They Work and Why Vendors in Particular Can Benefit
Are you looking to sell on Amazon or already active as a seller? Then you’ve likely heard about the different sales models on Amazon, know the difference between Seller and Vendor, and are familiar with a hybrid strategy. If not, feel free to check out our other blog articles on these topics.
In this article, we introduce another model for selling on Amazon: the broker model. This is particularly suitable for manufacturers with little Amazon experience or vendors interested in exploring a hybrid strategy. Below, we explain when a broker model can be a worthwhile alternative for you.
What is a Broker Model?
In a broker model for selling on Amazon, an Amazon broker acts as an intermediary between your company and Amazon. This means you don't have to choose between the seller or vendor model but instead follow a middle path.
You don't sell under your own company name but instead use the resources of another seller account. Usually, billing is done on a commission basis. The seller provides the broker with goods free of charge. Settlement occurs after the sale, deducting all incurred Amazon fees. This helps avoid logistical challenges that sellers often face on Amazon. On the other hand, there’s no need to switch to the vendor program, which may be unattractive for various reasons. Amazon brokers essentially serve as a bridge between seller and buyer. They facilitate sales and ensure that more potential buyers become aware of the seller’s product range.
When is a Broker Model Recommended?
A broker model is especially advisable if you're unsure about your Amazon sales strategy. Particularly if you have little Amazon sales experience, the broker model can help you avoid the challenges of building your own seller account, along with the associated resource and personnel demands.
While the vendor model also offers these advantages, you have little control over key aspects like pricing. The broker model gives you the freedom to negotiate terms directly with the broker. However, this doesn’t mean the broker model is always the better choice. Your business success depends heavily on the reliability and trustworthiness of your broker partner.
That said, the broker model is also suitable for experienced Amazon vendors—especially those interested in adding the seller model to their vendor strategy but reluctant to set up a seller account. The broker model enables vendors to easily test a hybrid strategy, bringing a host of advantages we’ll explore below.
Advantages of the Broker Model for Non-Sellers
As a non-seller, Amazon brokers can help you determine the value of your business. Building a profitable seller account isn't easy. Fully exploiting the potential of a product niche requires financial investment and additional staff specializing in marketing and e-commerce. There are also complex and ever-changing Amazon regulations that sellers must constantly monitor. Otherwise, product listings risk being deactivated.
This is where Amazon brokers come in. The broker acts between manufacturer and customer (or Amazon in the FBA model), purchases goods at agreed terms, receives and stores the goods, and handles sales and shipping while retaining a portion of the margin. While you do share profit with the broker, this can still be more advantageous than joining the vendor program. Unlike the vendor program, collaboration with a broker offers more transparency and cost control, as terms and prices are negotiated and Amazon fees are transparently passed on.
You also benefit from the broker's existing infrastructure, which you don't have to set up yourself. In addition to resources, expertise is key. Ideally, the broker has been active on Amazon for years and knows the critical levers in content creation, advertising, and account management.
The broker model for non-sellers is particularly useful if you're considering selling on Amazon in the short term but are currently unable or unwilling to open your own seller account.
Advantages of the Broker Model for Vendors
For vendors already experienced on Amazon, the broker model can also offer benefits—especially due to the limited flexibility and influence they have within the vendor model.
To enjoy the benefits of the seller program, vendors must consider a hybrid strategy. If setting up a seller account seems too burdensome, the broker model offers a simple extension to your vendor account.
This allows vendors to test or launch new products or bundles more easily—something much more complex in the vendor program. For example, new products can only be listed in the vendor program if officially sold. Sellers, however, can list new products with an EAN much more easily.
Cost benefits also exist in programs like Amazon Vine. Vendors can expect up to €1450 per product, while sellers often pay just €170.
Conclusion
The broker model is a compelling alternative to traditional Amazon selling programs for both non-sellers and vendors. Non-sellers gain low-barrier access to Amazon fulfillment without requiring infrastructure or expertise. Vendors can benefit from seller program advantages without committing to a full hybrid setup.
At REVOIC, our broker model offers flexible logistics for both FBA and FBM (including warehousing and packaging), along with our extensive Amazon expertise. Transparency is key to us, which is why you get access to all seller data. Visit our website for more details.
