How Amazon 3P Helps You Get to Know Your Customers Better

One of the most important aspects of any business is getting to know your customers. Insights into who your customers are, their demographics, preferences, and other characteristics are essential for developing and selling products that customers not only want but need.

While B2B manufacturers have historically considered distributors and other resellers their customers, understanding your end users is even more crucial. After all, they are the ones who ultimately decide which brand gets purchased.

The Challenge of Customer Information

Traditionally, distributors and resellers have tightly guarded customer information to prevent channel conflict. This includes limiting manufacturers' ability to sell directly to end users. However, this is where Amazon’s Seller Central (3P) excels. It connects B2B manufacturers to buyers and provides a wealth of data that can help you succeed on the platform.

Let’s take a closer look at the kind of data Amazon provides through its Seller Central program. This information can help you better understand your end customers and, consequently, sell more to them. Before we dive in, it’s important to note that this data is only available to sellers using the Seller Central, or 3P, model.

Why Choose Amazon 3P?

Why is the 3P model so effective? Amazon aims to provide the best customer experience possible. The 3P model is designed as a self-service platform for sellers, unlike the more traditional wholesale buying and selling model, such as Amazon Vendor Central (1P). When 3P sellers run their own storefronts on Amazon, having better data and insights helps them make smarter decisions about content effectiveness, advertising, stock levels, and operational performance.

By providing 3P sellers with these key data points, Amazon enables sellers to improve their marketplace performance by catering more to what their customers want. It’s a win-win; the higher the sales volume, the greater the profitability for both Amazon and its sellers.

What Data Does Amazon Provide to 3P Sellers?

Amazon provides 3P sellers with a remarkably detailed and dynamic set of data tools through Seller Central. At the core of these tools are comprehensive reports covering everything from overall sales performance and customer demographics to individual product metrics and B2B selling effectiveness. Sellers can access data on traffic, conversion rates, average order value, and advertising, all of which help them evaluate how well their content, promotions, and inventory strategies are working. These insights highlight opportunities for sellers to proactively identify issues and optimize their product listings, brand content, and more.

At a broader level, Amazon offers visibility into sales and traffic patterns. This includes how many units are ordered, how often products are viewed, and how well each item converts. Sellers can also distinguish between B2B buyers and B2C customers (or at least those buyers without an Amazon Business account).

B2B vs. B2C Sales on Amazon

For those selling through Amazon Business, performance metrics specific to B2B transactions are available. This helps sellers understand how effectively they’re reaching and serving professional buyers. These metrics include conversion rates, the proportion of products sold to B2B buyers, and indicators of product quality such as refund rates and customer feedback. If a particular item receives a high volume of negative reviews or returns, sellers can quickly identify potential manufacturing defects or other issues. This level of granularity is especially valuable for quality control, allowing sellers to respond swiftly to problems. Amazon also provides data grouped by industry category, offering useful benchmarks and context.

Brand Analytics: A Strategic Advantage

Brand analytics add another strategic layer of insight. Sellers can track overall brand engagement, including funnel analytics that show how customers interact with their products at different stages of the buying journey on Amazon. Users can see how often their brand or products are searched, monitor revenue generated—including sales from resellers—and identify how many buyers return for repeat purchases. These insights enable sellers to take targeted actions, such as sending promotions to customers who abandon their shopping carts or adjusting merchandising strategies based on funnel behavior. Sellers can also perform basket analysis to understand which products are frequently purchased together, helping them create effective bundles.

Understanding Customer Demographics

Another type of data provided is customer demographics. Amazon shares with sellers their buyers’ locations (city and state), age ranges, income levels, education, gender, and marital status. Geographic data shows where products are being shipped, which can inform regional marketing and inventory decisions.

Finally, the Voice of the Customer report offers a detailed view of product health from the customer’s perspective. It includes review summaries, return rates, and the top reasons for returns. Advanced AI tools provide sentiment analysis, allowing sellers to gauge customer satisfaction and emotional responses to their products. This feedback is invaluable for refining product offerings and enhancing the overall customer experience.

The Value of Data in Today's Market

In today’s data-driven world, access to insights like these can prove extremely valuable to businesses that want to grow their sales and revenues. Most distributors can’t (or won’t) provide this level of detail. In fact, acquiring this level of detailed customer data can be challenging, even from your own website or other third-party analytics.

And that’s exactly Amazon’s aim. They want their 3P sellers to sell more and rely on them for key data insights.

Taking Action for Success

If you’re looking to get more out of your Amazon program or if you’re ready to start one from scratch, it’s a good idea to talk to a top Amazon consultant. Schedule a call with our Amazon experts to discuss your challenges and how Enceiba can help you win on the largest eCommerce platform in the world.

By leveraging the insights provided by Amazon 3P, you can take control of your sales, resolve channel conflicts, and significantly grow your revenue and profit on the platform. Don't miss out on the opportunity to understand your customers better and drive your business forward!