1P Amazon vs 3P: What’s the Ultimate Model for You?
When it comes to selling on Amazon, you’ve got two main options: 1P (First Party) and 3P (Third Party). Sounds fancy, right? But don’t worry—we’ll break it down so it’s as easy as pie.
Whether you’re a big brand or a passionate entrepreneur, choosing the right model can seriously boost your sales, or cause you some headaches. Let’s figure out what works best for you!
What is 1P (First Party)?
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1P sellers work directly with Amazon. You act as a wholesaler. Here’s what happens:
- You sell your products to Amazon.
- Then Amazon sells them to customers under its own name.
- You get a purchase order from Amazon and fulfill it.
Sounds simple, right? Amazon handles pricing, shipping, and customer service.
Pros of 1P:
- Big-time visibility and branding
- Trust from shoppers—people love that “Ships from and sold by Amazon” label
- Amazon handles the heavy lifting (like customer service and shipping)
Cons of 1P:
- Little control over pricing
- Amazon might cut orders if your product doesn’t perform
- Harder to communicate directly with buyers
What is 3P (Third Party)?
3P sellers use the Amazon marketplace to sell directly to customers. You set up your own seller account and do the magic yourself.
Your options include:
- FBM: Fulfilled by Merchant – you handle packing and shipping.
- FBA: Fulfilled by Amazon – Amazon ships it for you.
3P gives you more freedom, but also more work.
Pros of 3P:
- You control prices
- Faster listing updates and product launches
- Customer data is yours (helpful for marketing)
Cons of 3P:
- You do more work (or pay Amazon for FBA)
- Highly competitive
- You’re in charge of customer service (unless you use FBA)
So… Which Model Should You Pick?
There’s no “one-size-fits-all” answer. But here’s a cheat sheet to help you decide.
Choose 1P if:
- You’re a brand with national recognition
- You prefer bulk orders over retail operations
- You want Amazon to handle all customer interactions
Choose 3P if:
- You want control over your brand, pricing, and customer experience
- You’re launching a new product or testing the market
- You enjoy data, marketing, and flexibility
Cool Fact: Many Sellers Use Both!
Yep, you can mix it up. Some big brands sell core products as 1P and launch new lines as 3P. This “hybrid” approach gives you the best of both worlds.
Imagine selling your bestsellers through Amazon’s trusted name while experimenting with edgy new products yourself. That’s smart business!
Still Not Sure? Ask Yourself:
- Do I want more reach or more control?
- Can I handle logistics myself?
- Is my brand strong enough to go solo?
Answering these questions will guide your next move.
The Final Verdict
1P is great if you want to let Amazon do the heavy lifting. It’s straightforward, like setting it and forgetting it.
3P is better if you’re hands-on and want to steer the ship yourself. You’ll grow your brand and gather important customer data along the way.
Either way, both models can be profitable—if you use them right.
Remember: Amazon is a powerful platform. But it rewards strategy, not just presence.
Wrapping It Up
Choosing between 1P and 3P depends on your goals, resources, and style. Some sellers love the simplicity of 1P. Others thrive on the hustle of 3P.
The best model for you? It’s the one that fits your business like a glove.
So research, plan, and maybe even test both. Then watch your sales soar!
