1P vs 3P for B2B Manufacturers and Distributors
Improve Control and Grow Your Revenue and Profits on Amazon
The Amazon 3P approach is a slam dunk! We should have engaged Enceiba to move us from 1P to 3P five years ago."
Ron Veiders
Director of Marketing
1P to 3P Migration
Thinking about Making a Switch? Enceiba Can Help.
B2B firms often start selling on Amazon through the Vendor Central program, also called 1P selling. But firms lose a significant amount of control of pricing, inventory, and profitability under this approach. And it can be frustrating.
The good news is that there’s a different way. And Enceiba’s here to help you find it.
What Are 1P and 3P selling?
Vendor Central (1P) is essentially a wholesale relationship with Amazon. Manufacturers or distributors sell their products to Amazon, who then control everything related to how products are presented and sold on their platform. That is, Amazon ultimately dictates prices, content and images, and other crucial aspects to selling the products.
Conversely, Seller Central (3P) is an approach in which manufacturers or distributors sell their products themselves through (rather than to) Amazon. In this model, manufacturers or distributors set up a storefront on Amazon to offer products for sale, but Amazon never actually purchases the product from the supplier. The supplier (you) controls every aspect of selling products on the platform. 3P enables the supplier to set retail prices, create engaging branded product listings, control the portion of the product line that is offered, set inventory levels, and more.
1P vs 3P on Amazon: Which one is Better?
The truth is that both models have their benefits—and their tradeoffs. While Vendor Central is a more restricted approach, some B2B manufacturers might have a good reason to only sell via a wholesale relationship with Amazon.
Seller Central is more flexible and gives sellers far more control over their Amazon presence. But it also requires a larger investment in time and energy to manage.
There’s also a hybrid model, where some products are sold as 1P and others are sold as 3P.
Enceiba can help you determine which approach is right for you: 1P, 3P, or a Hybrid selling model.
Read More about 3P Selling
Making the Best Choice for Your Business
If you’re struggling to understand whether 1P or 3P is better for your business, Enceiba can help. Let our seasoned industry veterans analyze your options and recommend a course of action. We’ll crunch the numbers and help you understand where your best opportunity lies.
Whichever model you choose, Enceiba can guide your migration and optimize your presence.
1P vs 3P
Frequently Asked Questions
What are 1P and 3P on Amazon?
1P, also known as Vendor Central selling, means you sell your products directly to Amazon through a more traditional wholesale relationship. Amazon resells your products, handling pricing, fulfillment, and customer service. In contrast, 3P, also known as Seller Central, means you sell your products through Amazon’s marketplace. Amazon does not purchase your products, but acts as an intermediary, facilitating transactions between you and end buyers. In this approach, you retain control over pricing, branding, content, and inventory, and either fulfill orders yourself or use Fulfillment by Amazon (FBA).
What are the key differences between 1P and 3P?
The primary differences come down to control, profit margins, and operational responsibility. In the 1P model, Amazon takes ownership of your products and controls how they are priced and presented, and you earn wholesale margins. In a 3P model, you sell directly to the customer through Amazon’s marketplace, which gives you more flexibility over pricing, content, and brand representation, usually resulting in higher revenue and profitability to you.
Why should B2B companies move from 1P to 3P?
Many manufacturers and distributors are shifting from 1P to 3P to regain control over their pricing, branding, and inventory. The 3P model enables direct customer engagement and often leads to stronger profitability and less channel conflict, especially for companies managing complex B2B product catalogs with thousands of products. In some cases, 1P can be a superior model for selling products, particularly for lower priced items or when operational constraints prevent 3P selling. Enceiba can help you determine which approach is right for your business.
Is 3P always better than 1P?
Not necessarily. While 3P allows for more flexibility and margin control, it does require more infrastructure and proactive attention. Some businesses benefit from a hybrid approach, using both 1P and 3P strategically. Enceiba helps companies evaluate which path delivers the best outcome.
How does Enceiba support 1P to 3P migration?
Enceiba delivers a full-service roadmap to guide your transition from Vendor Central (1P) to Seller Central (3P). That includes evaluating your current 1P performance, modeling your 3P opportunity, planning the migration steps, setting up your 3P presence, and providing hands-on support throughout the entire process.
How long does it take to shift from 1P to 3P?
Shifting from 1P to 3P can take as little as a few months to over a year. The timeline will depend on numerous factors, including how much inventory Amazon has in its 1P program at the start of the shift. Enceiba can help determine a timeline and lay out a transition plan for you.
What results can I expect from switching to 3P?
Clients who migrate to a 3P model often see improved profit margins, better control over brand presentation on Amazon, greater pricing agility, and a clearer long-term Amazon strategy. It often positions B2B companies to scale more effectively while aligning better with their go-to-market goals.
What results can I expect from switching to 3P?
Clients who migrate to a 3P model often see improved profit margins, better control over brand presentation on Amazon, greater pricing agility, and a clearer long-term Amazon strategy. It often positions B2B companies to scale more effectively while aligning better with their go-to-market goals.
What does 1P to 3P migration cost?
Enceiba Amazon Strategy Services are offered on a fixed price basis. The specific cost will vary based on your specific scope and requirements. Please contact Enceiba to discuss pricing.
How do we get started with 1P to 3P migration?
It starts with speaking to our expert Amazon consultants. From there, we build your Amazon strategy based on real data, focused execution, and measurable success.
