Decoding Amazon: What Every Brand Should Know About 1P vs. 3P

Selling on Amazon opens up massive opportunity but how your brand shows up on the platform matters just as much as what you’re selling.

At the heart of it? Picking the right selling model.

Some brands go the 1P route, letting Amazon take the wheel on pricing, logistics, and fulfillment. Others go 3P, managing their own storefront, sales, and strategy directly on Amazon’s marketplace. Both paths can work. But they lead to very different outcomes.

Before you commit, let’s unpack the models, the tradeoffs, and the hidden advantages so your brand can choose a path that actually aligns with your goals.

What’s the Difference Between Amazon 1P and 3P?

1P (first-party) is basically wholesale: Amazon buys your products and sells them directly to consumers. They set the price. They fulfill the orders. You’ll operate through Vendor Central, but most of the customer-facing details are out of your hands.

3P (third-party) flips the script: You list and sell products on Amazon Marketplace yourself, using Seller Central. You control your pricing, content, inventory, and advertising. You’re running the show and responsible for everything from creative to customer service.

Let’s Talk Tradeoffs

Why Some Brands Choose 1P

 -Amazon’s name lends trust
-Automatic Prime eligibility
-No logistics headaches as Amazon handles fulfillment, returns, and customer service
-Priority placement and access to vendor-exclusive analytics
-No inventory risk or listing penalties

But there’s a flip side:

-You give up pricing control. Amazon can undercut your MAP
-Margins shrink with wholesale pricing
-Inventory availability is in Amazon’s hands
-Less visibility and control over your brand on the platform

Why 3P Continues to Gain Momentum

-Total control of pricing, content, inventory, brand experience
-Full access to ad performance and sales data
-Direct customer relationships and branding flexibility
-Freedom to optimize listings, run promotions, and refine strategy in real time
-Better cross-platform inventory coordination

But it comes with real responsibility:

-You’re managing fulfillment, support, and logistics (unless you opt for FBA)
-More setup and operational lift
-Subject to Amazon’s enforcement (listing takedowns, account suspensions, etc.)
-Additional seller fees

Still, for many brands, that added effort is worth the payoff. With the right support, 3P becomes a powerful lever for long-term control, profitability, and growth.

Want to Sell 1P? Wait for the Invite.

Want to Sell 3P? Start Today.

There’s only one way into Amazon’s 1P program: an invitation. Amazon chooses who gets in.

But 3P? That’s open to everyone. It starts by creating a Seller Central account, submitting a few business details, and getting verified. Once you’re approved, your listings can go live.

You’ll also choose how you want to fulfill orders:

• Fulfilled by Merchant (FBM): You store, pack, and ship. Full ownership, full workload.
  
  
• Fulfilled by Amazon (FBA): Amazon handles warehousing and shipping—but you’ll need to follow their prep rules and pay associated fees.
  
  

Other Models Brands Should Know

While 1P and 3P are the main players, there’s a broader menu of options depending on how much control or support you want:

• 3P Unmanaged: No one actively steering your brand on Amazon
  
  
• 2P: A lighter lift (Amazon fulfills but doesn’t buy wholesale)
  
  
• Hybrid: Blend 1P and 3P strategies
  
  
• 3P Network: Authorize a handful of sellers
  
  
• 3P Partner: Choose one exclusive ecommerce partner to manage it all
  
  

Why We Believe in the 3P Partner Model

At Pattern, we’ve seen it again and again: brands that go 3P with the right partner gain more control, better margins, and stronger long-term results.

Here’s how it works:
We buy your inventory and become your authorized seller. From there, we manage your Amazon business top to bottom. Listing optimization, ad strategy, inventory forecasting, fulfillment, customer service, and compliance. We take on the risk and complexity so your team can stay focused on brand and strategy.

And unlike 1P, we don’t cut corners on pricing or presentation. We follow your MAP, protect your brand, and collaborate closely on everything from content to product launches.

It’s a better way to sell and a smarter way to grow.

Rethinking Your Amazon Strategy?

If you're looking to make the move to 3P or want a partner who can help you scale without compromise, let’s talk.

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