What are Amazon Vendor codes and why can product costs differ?

What is a Vendor code?

A Vendor code is an identifier Amazon uses when purchasing products under a particular commercial arrangement.

A business may have multiple Vendor codes covering different:

• Business entities or divisions
• Marketplaces or locations
• Warehouses and supply routes
• Amazon Retail and Direct Fulfilment arrangements
• Freight responsibilities
• Negotiated costs and commercial terms

Vendor codes may appear in Amazon purchase orders, operational reports and financial data.

Why can product costs differ?

The same ASIN can be supplied through multiple Vendor codes. Each code may have its own negotiated product cost, freight arrangement, currency, rebates or deductions.

For example, the cost agreed for stock delivered in bulk to an Amazon fulfilment centre may differ from the cost used for Direct Fulfilment orders shipped individually by the Vendor.

This means a product does not necessarily have one universal cost across every Vendor arrangement.

How does this affect MerchantSpring?

Where supported, COGS and other commercial inputs should be maintained at the appropriate Vendor-code level.

Applying one cost to every Vendor code could overstate or understate profitability when the underlying arrangements are different.

When investigating a cost difference, confirm:

1. The relevant Vendor code and ASIN
2. Whether the activity relates to Amazon Retail or Direct Fulfilment
3. The applicable marketplace, currency and reporting period
4. Whether different costs or commercial terms apply to that Vendor code

Important note

Always use the Vendor code attached to the relevant Amazon activity when reviewing product costs or profitability.

Need help?

Contact support@merchantspring.io and include the relevant account, Vendor code, ASIN, reporting period and any helpful screenshots or exports.