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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."
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 Is 1P selling vs 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.
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.
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