Sellers and vendors log into the same Amazon Ads console, see the same campaign types, and bid in the same auctions. It is easy to assume the advertising is the same too. It mostly is, at the level of buttons. Underneath, the economics are different enough that the same ACoS can mean a profit for one and a loss for the other.
This comparison covers what is shared, what differs, and how each side should adjust targets, budgets and monitoring.
The short version
Sellers (Seller Central, first sale to the shopper) set their own retail price, own their inventory, and see their margin on every order. Vendors (Vendor Central, wholesale to Amazon) sell to Amazon at a wholesale price, and Amazon sets the retail price and manages stock. Both can run Sponsored Products, Sponsored Brands and Sponsored Display. Both can use Amazon DSP.
The ad tools are close to identical. The inputs to every ad decision, margin, price and stock, are not.
Margins and breakeven ACoS
The console reports ACoS against attributed sales at the price the shopper paid. For a seller, that is their own revenue, so breakeven ACoS is their margin before ad costs as a share of price.
For a vendor, the shopper's price is Amazon's revenue, not theirs. The vendor received the wholesale price. A vendor who calculates breakeven against the retail price will set targets that are too loose.
Illustrative example: Parkway Home sells a lamp that retails at a price where the wholesale cost to Amazon is meaningfully lower. A 25 percent ACoS on retail sales may look fine, but measured against the wholesale revenue Parkway actually receives, the true cost of advertising is a larger share. Parkway sets its targets from wholesale revenue and its own margin, then converts back to the retail-based ACoS the console shows. What is a good ACoS covers the basic breakeven math.
Price control
Sellers change price when they want. That makes ads and pricing a single lever: a seller can run a coupon, raise bids for a week, and read the result.
Vendors do not set the retail price. Amazon may lower it to match competitors or raise it when stock is short. A campaign that converted well at one price can stall when Amazon changes it, and the vendor may not notice until performance reports show a drop. Vendors should watch conversion rate closely and check the live price when it moves.
Inventory and out-of-stock risk
Sellers control replenishment. They can see days of cover and slow ads before stock runs out.
Vendors depend on Amazon's purchase orders. When Amazon under-orders, listings can go out of stock or show long delivery dates while campaigns keep spending. Vendors need a habit of checking availability on advertised products, especially before large events. Inventory-aware advertising covers how to tie ad spend to stock.
Reporting and data
Both sides get the same advertising reports: search terms, targeting, placements, and campaign performance. The business reports around them differ. Sellers have business reports in Seller Central with sessions, conversion and total sales. Vendors use Vendor Central retail analytics, which report sales, traffic and inventory from Amazon's side.
For TACoS, both need total sales next to ad spend. Sellers usually have this closer to hand. Vendors should agree on one source for total sales and stick to it, because different reports can define revenue differently. The reports guide covers which advertising reports answer which question.
Ad type access is similar too. Sellers generally need brand registry to run Sponsored Brands and some Sponsored Display options. Vendors who are the brand owner typically have access to these ad types through their vendor relationship. In practice, most established brands on either side end up with the same set of ad types available.
Where the strategy diverges
Targets. Sellers set ACoS targets from their own margin. Vendors set them from wholesale revenue and should expect a tighter breakeven on the retail-based number the console shows.
Monitoring. Sellers watch their own stock and price. Vendors watch Amazon's price and availability, which change without warning. Both benefit from alerts on unusual spend, but vendors have more reasons for performance to move without any change on their side.
Budgets around events. Sellers can plan stock for an event and raise budgets with confidence. Vendors should confirm that Amazon has ordered enough stock before raising budgets, or the extra spend can land on listings that are about to sell out.
Hourly scheduling. This works the same for both. Shopper behavior by hour does not depend on who sold the product to Amazon. Sellers and vendors with uneven hourly conversion both benefit from scheduling.
Hybrid accounts
Some brands sell part of their catalog through Vendor Central and part through Seller Central. Keep the two in separate campaigns, and ideally separate ad accounts, so each set of products is judged against its own margin. Mixing them makes every ACoS target wrong for half the products.
A checklist for either side
Whichever side you sell on, the same few questions decide whether your ad targets are right. What revenue do you actually receive per unit? What does a unit cost you to make and deliver? Who controls price, and how often does it change? Who controls stock, and how much warning do you get before it runs out?
Answer those once, write the answers next to your ACoS targets, and revisit them when terms change. A vendor whose wholesale cost rises, or a seller whose fees change, needs new targets even if nothing in the ad console looks different. Measuring advertising ROI covers how to tie targets back to profit.
Frequently asked questions
Can vendors run Sponsored Products ads?
Yes. Vendors can run Sponsored Products, Sponsored Brands and Sponsored Display from the Amazon Ads console, alongside access to Amazon DSP. The campaign types are largely the same as for sellers. What differs is the business data around them, such as margins, pricing and inventory control.
Is ACoS calculated differently for vendors?
The console calculates ACoS the same way, as ad spend divided by attributed sales at Amazon's retail price. The difference is that a vendor's revenue is the wholesale price Amazon pays, not the retail price, so the breakeven ACoS has to be calculated against that lower number.
Which is better for advertising, Seller Central or Vendor Central?
Neither is better for ads on its own. Sellers have more control over price and inventory, which makes ad decisions easier to connect to profit. Vendors trade that control for Amazon handling retail operations. The right model depends on the wider business, and the ad strategy should follow it.
Off Hours runs dayparting, budget and performance rules on a 15-minute cadence and logs every change, at a flat price per ad account. Start a free 14-day trial.