Why Brands Should Shift to 3P Sellers

Rebecca Brown

December 29, 2022

Why Brands Should Shift to 3P Sellers

According to Pattern’s most recent Amazon Vendor Survey for brands selling in Europe, 1 out of 3 brands are currently 3P, and we see this becoming a global trend. More and more 1P seller brands are making the switch to 3P, but why? According to our Amazon data, sales for 3P sellers are going 2x as fast as 1P sales. As 1P shifts to 3P sellers, it’s time to seriously consider the benefits of being a 3P seller on Amazon.

Pattern, an ecommerce accelerator and top seller on Amazon, helps brands shift seamlessly from 1P to 3P as well as manage the brand as a 3P partner, ultimately driving more sales and creating more revenue. Here’s a few reasons why brands are making the switch to 3P:

1. Increase in Brand and Marketplace Control

Working with a 3P partner on Amazon and other marketplaces helps brands increase their brand and marketplace control, avoid Buy Box suppression, and potentially eliminate price control issues. A 3P partner helps prices stabilize and profits increase on Amazon as well as other retail channels. With distribution and pricing under control, brand executives have more time to devote to overall distribution,giving them better retail leverage with brick and mortar in particular.

2. Access to More Resources and Data

We hear from countless brands that part of the frustration of being a 1P seller on Amazon and other marketplaces is the lack of data and resources they are provided to make informed decisions. A 3P partner gives brands all the resources and expertise they need to grow on all marketplaces.

At Pattern, it is part of our partnership model to provide our brands access to all available data to make informed decisions and optimize growth levers. Having the right data helps brands accelerate their profitable growth on all channels.

3. Potential for International Growth

The potential revenue in international marketplaces is massive, but it can be an overwhelming process and decision for a 1P seller to grow globally. As a 1P Amazon seller, your Amazon vendor manager (VM) is completely different for each region you may want to expand to such as Canada, Mexico, Europe, or Japan. Figuring out who their Amazon VM is in those regions is difficult, and trying to set up a meeting with them is even worse. A 3P partner, like Pattern, has marketplace experts, with experience and resources, in multiple regions to scale global growth on all global marketplaces.

4. Save Time and Money That Can Be Allocated Elsewhere

As a 1P seller, deciding where to spend your time and money is overwhelming. For example, if you focus on driving growth on online marketplaces, your brick and mortar may suffer or vice versa. On Amazon, a brand’s budget and time is often spent dealing with chargebacks, tickets, or waiting to talk to their Amazon brand manager. With a trusted 3P partner, who takes care of Amazon end-to-end, your team’s time and budget can be invested in other areas of your business.

Shift to 3P With Pattern

With about one-third of global brands already working with a 3P seller, and many more shifting to 3P, it’s worth considering why they’re making the switch. Although 3P may not be for everyone, knowing the benefits and drawbacks of 1P vs. 3P can help you make the right decision for your brand.

As the world’s foremost ecommerce accelerator, 3P partner, and top seller on Amazon, Pattern helps ease the challenges for brands switching from 1P to 3P, and manages the brand growth thereafter. We’ve helped hundreds of brands reap the benefits of being a 3P seller by providing them with our resources, expertise, and data.

Considering switching to 3P? Contact us.

Discover more insights by downloading our annual Amazon Vendor Survey EMEA.

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