If you’re selling (or planning to sell) on Amazon or other e-commerce platforms, you’ve probably come across terms like Seller Model and Vendor Model.
But here’s the reality most blogs don’t tell you 👇
On Amazon India, there’s a third, highly important model that drives massive scale:
👉 Strategic Sellers (B2B2C Model) — like VRP Telematics, Cocoblu Retail, Etrade Online, Clicktech Retail
In this blog, we’ll break down all three models in a simple, practical way so you can decide what’s right for your brand.
1. What is the Seller Model (Marketplace Model)?
In the Seller Model, you (the brand) sell directly to customers through Amazon’s marketplace.
How it works:
- You list products on Amazon (via Seller Central)
- Customers place orders
- You fulfill orders (or use FBA)
- Amazon charges commission & fees
Key Features:
- ✅ Full control over pricing
- ✅ Control over ads & listings
- ✅ Higher margin potential
- ❌ Operational complexity
- ❌ Inventory risk
👉 Best for: Brands focused on profitability, control, and experimentation
2. What is the Vendor Model (Wholesale Model)?
In the Vendor Model, you sell products directly to Amazon, and Amazon sells them to customers.
How it works:
- Amazon raises a Purchase Order (PO)
- You supply inventory at a wholesale price
- Amazon handles pricing, delivery, and customer experience
Key Features:
- ✅ Predictable demand (PO-based)
- ✅ Lower operational burden
- ❌ No pricing control
- ❌ Lower margins
- ❌ Limited visibility on customer data
👉 Best for: Brands focused on scale and operational simplicity
3. The Hidden Layer: Strategic Sellers on Amazon
Now comes the most important (and often ignored) part.
You’ll often see sellers like:
- Cocoblu Retail
- VRP Telematics
- Etrade Online
- Clicktech Retail
selling the same branded products on Amazon.
So who are they?
These are large-scale third-party sellers who:
- Buy inventory from brands in bulk (B2B)
- Sell to customers on Amazon (B2C)
- Operate at a much larger scale than normal sellers
👉 This model is called:
Strategic Seller Model (B2B2C Model)
4. How the Strategic Seller Model Works
Flow:
- Brand sells inventory to a strategic seller (like Cocoblu)
- Seller lists products on Amazon
- Seller manages pricing, stock, and fulfillment (mostly via FBA)
- Customer purchases on Amazon
👉 In short:
Brand → Strategic Seller → Amazon → Customer
5. Why Amazon Promotes These Sellers
Amazon actively works with these sellers to:
- Ensure high product availability
- Maintain competitive pricing
- Scale categories faster
- Reduce dependency on Vendor Model
These sellers often:
- Win the Buy Box more frequently
- Have better fill rates
- Operate with strong supply chain efficiency
6. Types of Selling Models on Amazon (Clear Categorization)
1. Direct Seller Model (D2C)
- Brand sells directly on Amazon
- Full control
- Higher effort
2. Strategic Seller Model (B2B2C) ✅
Includes:
- Cocoblu Retail
- VRP Telematics
- Etrade Online
- Clicktech Retail
Characteristics:
- Seller buys inventory from brand
- Seller sells to end customer
- Scaled operations
- Shared control on pricing
👉 Think of it as a middle layer between Seller and Vendor models
3. Vendor Model (Amazon Retail)
- Amazon buys and sells inventory
- Maximum scale
- Minimum control
7. Seller vs Vendor vs Strategic Seller (Comparison)
| Factor | Seller Model | Strategic Seller Model | Vendor Model |
|---|---|---|---|
| Inventory Ownership | Brand | Seller | Amazon |
| Pricing Control | High | Shared | Low |
| Margins | High | Medium | Low |
| Scale | Moderate | High | Very High |
| Operations | Brand handles | Seller handles | Amazon handles |
| Working Capital | High | Medium | Low |
8. When Should You Use Strategic Sellers?
This model is ideal if:
- You want fast scale on Amazon
- You’re facing operational challenges
- You need better fill rates
- You want to liquidate inventory quickly
- You’re okay trading some margin for scale