How Brands Can Win on Amazon’s 3P Marketplace

Brands today realize the importance of having an Amazon strategy to reach their customers where they are — 66% of consumers begin their search for new products on Amazon, according to Feedvisor data, and in the wake of the COVID-19 pandemic, that number is sure to rise.

Yet, despite the numerous benefits of selling on Amazon, operating on the marketplace poses its own set of challenges for brands, such as unauthorized sellers, counterfeits, and minimum advertised price (MAP) violations — all of which over time can result in brand erosion and negatively impact your brand’s long-term performance.

Certainly, brands operating on Amazon can pull various levers to ensure their brand reputation, value, and shopper perception all remain intact. They can discover how to remain agile while navigating dynamic market forces such as pricing, inventory, demand, and the competition — all while avoiding brand erosion.

There are several distinct differences between operating through Amazon’s first-party (1P) selling model via Vendor Central and operating through its third-party (3P) model via Seller Central that brands ought to consider in regard to maintaining control over their brand representation on the platform.

61% of 1P brands want to expand to Amazon’s 3P marketplace.

Is an Amazon third-party (3P) strategy right for your brand? What are the operational differences between Vendor Central and Seller Central? What are the advantages and challenges for brands in becoming a 3P seller?

Our Amazon experts have compiled specific and actionable strategies in a playbook designed to help you make the transition to the 3P marketplace and maximize impact on the channel. Whether you are a private label, 1P brand, or brand that is new to Amazon, understanding how to connect SKU-level performance and profitability on the Amazon marketplace can greatly benefit not only your brand value but also your bottom line.