What’s the Difference between Amazon 1P vs 3P?

Kris Potrawiak

November 7, 2022

So you’ve decided to get your brand onto the e-commerce bandwagon and with Amazon becoming more pronounced in the Australian market, it’s naturally an excellent next step to increasing your brand awareness in the digital market and getting a head start into selling on marketplaces. 

However, the ability to choose between Amazon’s 1P model vs its 3P model can become complicated, as each requires a sound knowledge of selling on marketplaces and how to maneuver through the landscape. In this article, we’re taking a dive into the difference between 1P and 3P so you can select the best model for your brand.

What is Amazon 1P?

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Amazon first party (1P), is a direct first-party relationship with Amazon’s retail team meaning that a ‘Vendor Manager’ will manage your brand on Amazon. A contract will be negotiated, the Vendor Manager will order stock to be delivered to Amazon’s warehouse and Amazon will oversee all marketing activities with your support. This is the same as selling your brand/products to a bricks & mortar retail chain. Amazon 1P is also invite only selling method which is only available to established retailers.

Some of the benefits of Amazon 1p include:

  • Gained credibility as a trustworthy brand selling directly through Amazon.

  • Access to a diverse range of advertising available.

  • The convenience of a hands-off approach with limited operational oversight.

What is Amazon 3P?

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Amazon third party (3P), is a third-party relationship where you set up your seller account, upload your products yourself and manage your listings, content, prices, marketing, promotions, etc. Essentially it is a self-service model to sell on the marketplace of which you have full control and can terminate the account whenever you want. You also have the option to send your stock into Amazon’s warehouse to manage the deliveries or manage order deliveries yourself from your warehouse. Alternatively, if your team does not have the expertise to manage such an account you can partner with an established and experienced e-commerce reseller to resell your brand under their account name.

Some of the benefits of Amazon 3P include:

  • Full control over brand positioning, advertising, marketing, promotions etc., and can vary your prices as the market fluctuates or to gain an advantage above your competitors.

  • More hands-on capabilities across inventory and brand.

  • Ability to update ASIN titles, bullets, descriptions and A+ content as needed without the needed approval of Amazon’s internal team.

  • Extending your customer base - reaching new audiences and expanding your channel reach via new platform. 

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

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While both models have their own pros and cons, there is a difference in the level of service, convenience and manageability between 1P and 3P

On the 1P model, however, your brand will be sold on the Amazon website under the retail name. This does offer good customer confidence and alleviates a lot of work from your team, as you simply receive the PO and deliver it to Amazon. However, you will not have control of your selling prices, payment terms are typically 90 days and you will need to negotiate all promotions & marketing campaigns with your Vendor Manager.

With the 3P model, however, you have total control of selling prices, which products to add/remove from the website, and whether to hold inventory at your facility and manage deliveries to customers or have it in the Amazon warehouse and let Amazon deliver. The decision for promotions and marketing campaigns will be within your control and execution via your account. However, this means there is a lot more set-up work, management required and a sound knowledge of Amazon seller methods is required to do well on a marketplace platform.

Which Amazon Selling Model is Better?

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Whether you decide to sell through Amazon 1P or want the control and flexibility of 3P, it really comes down to business structure and how much control you need or want over what your brand is selling. Do you want to be in control of your brand, marketing and activity, or would you prefer to have a managed and hand-off service with the convenience and expertise guiding your brand?

Things to consider:

  • Do I have sufficient internal resources to manage a 1P versus 3P relationship?

  • Can my logistics team manage order deliveries direct to customers or should my stock sit in Amazon’s warehouse and they deliver my orders?

  • What level of influence do I want over my brand’s positioning, protection and portrayal?

  • Can my internal resources execute marketing campaigns on a 3P model or should I go on 1P and allow Amazon to manage this?

When looking into which selling model to choose for your brand on Amazon, make sure to contact us with our team of marketplace experts at Pattern to better understand our partnership model when selling on Amazon.

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Important Holidays to Prepare for on Marketplaces in China
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Important Holidays to Prepare for on Marketplaces in China

Brands selling their product throughout the Asia-Pacific region may wonder how to keep up with the fast market and make plans for next year. The good news is that in China, and the surrounding areas, there are many ecommerce holidays year-round for brands to prepare for and increase their sales. As brands plan for 2023, here are some important holidays brands should prepare for in China:

Q1 (January-March)

  1. Chinese New Year: (usually late Jan.–mid-Feb.) Spring Festival—also known as Chinese New Year—is a week-long holiday that is quickly becoming an incredible growing opportunity for brands.

  2. Valentine’s Day: (Feb. 14) Despite being an inherently Western holiday, Valentine’s Day on 14th February is another major event that has been wholeheartedly adopted in China, especially among younger demographics. 

  3. International Women’s Day: (Mar. 8) The global holiday, which is celebrated annually, is not only focused on women in particular, but in China also the sale of items related to the needs of women. 

Q2 (April-June)

  1. 520 Festival: (May 20) The Chinese pronunciation for the numbers “5-2-0” sounds similar to “I love you”, hence “520 Festival”. May 20th gives Chinese lovers another chance to showcase their affection to one another through gift giving–China’s version of Valentine’s Day.

  2. 6/18 - founding anniversary of JD.com: (Jun. 18) This is the founding anniversary of JD.com, one of the most prominent ecommerce companies in China. The event,  colloquially known as 618, is celebrated annually for 18 days leading up to June 18th. 

Q3 (July-September)

  1. Qixi Festival: (7th day of 7th month of Chinese Lunar Calendar, Aug. 22 in 2023) Qixi Festival signals the annual meeting of the cowherd and weaver girl in Chinese mythology, creating China’s Valentine’s Day and a huge retail event.

  2. Mid-autumn festival: (Sept. 29) Also known as the Moon or Mooncake Festival, this traditional festival is celebrated in many Asian countries. The mid-autumn festival is a very popular time to give gifts to friends and relatives. 

Q4 (October-December)

  1. Golden Week: (1st week in Oct.) This week-long public holiday in China is not necessarily an ecommerce holiday, but everyone takes work off for the week and it could have a direct impact on your ecommerce business. Being aware of public closures in the Asia-Pacific regions will help you plan ahead in inventory levels and necessary communication.

  2. Singles’ Day: (Nov. 11) Singles’ Day, or Double 11 festival, is the biggest 24-hour online shopping festival in the world and originated in China. Singles’ Day is a type of “anti-Valentine’s day”, originally created for those with a single relationship status, due to the symbolism of the number 1 (11/11). The shopping event has broken sales figure records each year since its birth and is often likened to Black Friday in the US.

  3. Double 12: (Dec. 12) Double 12, or Couples’ Day, is another massively popular shopping event in China that was originally established for smaller businesses that might have missed out on the benefits of Singles Day. 

How to Prepare For These Ecommerce Holidays in 2023

Now that you’re aware of the ecommerce holidays in 2023 that could benefit your brand, it’s important you prepare well and can use them to your brand’s best advantage. Here are four things to keep in mind when preparing:

1. Make sure you have a good trade partner. 

All brands expanding to or selling in China on any marketplace need a trade partner they can trust. A good trade partner should have experience, transparency, a data-driven mindset, brand obsession, and the right tools and resources to help you succeed.  

2. Stay ahead of the logistics. 

A good trade partner will help your brand understand various regional consumer demands and give you marketplace-specific logistics to help you to stay in stock. Every marketplace demands various amounts of stock, mostly depending on the consumer demand in that region, but also the upcoming holidays celebrated in those regions.

3. Prepare your customer-service teams for the holidays.

If you are planning to participate and sell your products during the holidays mentioned above, it’s important your customer-service teams are aware and know how to handle the influx of consumers during those times. 

 4. Be aware of local and regional holidays that may affect your business.

Knowing which holidays can directly affect and improve your business is key to selling across marketplaces in the Asia-Pacific region. Although not all holidays may be obviously relevant to your brand, it’s worth looking into and elevating an opportunity for increased sales.

Accelerate on Chinese Marketplaces with Pattern

The opportunity for your brand to increase traffic and conversion during holidays in China is exponential.  As the world’s foremost ecommerce accelerator, Pattern can handle your end-to-end strategy to grow your brand both domestically and internationally. 

Pattern is an option to be your brand's trading partner since we know local languages, customs, and cultural nuances to clearly communicate your brand as we plan, strategize, and execute your products’ success in China. We make your success our business, dedicating expert teams, years of experience, and proprietary technology to find the best ways to take your products to consumers throughout the world.

Discover how you can grow your brand internationally. Contact us

One Amazon Live Event Wins Owlet the Best Seller Rank in Two Categories
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One Amazon Live Event Wins Owlet the Best Seller Rank in Two Categories

Owlet is dedicated to providing innovative baby monitor products that can track a baby's vital signs, giving parents peace of mind. With such a compelling product solution, Owlet wanted to raise brand and product awareness.  

Working with Pattern as its 3P partner on Amazon, Pattern decided to host an Amazon Live event to feature Owlet products in use. That way, Owlet could demonstrate the efficacy of their baby monitoring products dispelling any consumer doubt, skepticism, and addressing all questions.

Download the one-page case study here.

Amazon Live Kicks Off Owlet Sale Event

Pattern produced and executed an Amazon Live to kick off a sale with Owlet. Pattern’s creative team set up a studio at our global headquarters complete with a baby crib, Owlet products, and two charismatic hosts who acted as brand advocates. After the event, Pattern's digital marketing experts measured the impact to overall sales.

Read more about Owlet's Amazon Live event.

During and After Amazon Live, Owlet Sales Spike

During the event, Owlet traffic, defined by Amazon page views and sessions, spiked. The event’s attention to product detail, compelling video, and host engagement improved conversions too. Owlet's sales increased by over 10% during the week of their Amazon Live event and sale. 

But the success didn’t stop there–the event improved Owlet's Best Seller Ranking as well.  Their sock monitor went up ~70% and their camera by ~69% during that week. 

Owlet Traffic, Conversion, and Rank Skyrocket 

  • Owlet sales, page views, and sessions all spiked during the Amazon Live event.

  • Owlet increased sales by approximately 9-16% throughout the whole week of the Live event and sale.

  • Owlet’s Best Seller Ranking Jumped:

    • Sock monitor improved by 70% during the week of their Amazon Live event and sale.

    • Camera improved by 69% during the week of their Amazon Live event and sale.

Pattern’s Amazon Expertise 

As the world’s top ecommerce accelerator and Amazon 3P partner, Pattern knows how to take advantage of the various advertising channels on Amazon and other marketplaces to build your brand.  Pattern’s strategy is grounded in data-driven trends and consumer shopper behavior on Amazon, which is applied to our ecommerce equation.

How can we increase traffic and conversion to your brand? Contact us today.

“Partnering with Pattern has expanded our ability to capitalize on sales-driving opportunities that we wouldn't be able to tackle on our own. ”

– Jared Anderson, Owlet VP of Sales


Catch a behind the scenes moment from the Amazon Live Event:

5 Crucial Considerations When Building Your Global Marketplace Strategy
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5 Crucial Considerations When Building Your Global Marketplace Strategy

As a brand creates revenue and gains momentum on domestic marketplaces, executives may start to wonder if they should grow their brand internationally. Expanding to international marketplaces is complicated, can be overwhelming, but building a solid strategy before expanding internationally will streamline the process. 

At Pattern, we’ve helped countless brands build their international strategy with our proprietary data, global marketplace experience, and local expertise in established and emerging regions. 

Building an international strategy must be calculated and methodical, and here are five considerations at the core of going global: 

1. Distribution by Country/Region

First, it should be no surprise that the methods and strategies companies use to transport products from the distribution centers to customers can vary by country or region. Handling order fulfillments may look different from shipping and packaging options, to delivery and transportation. Although the basic steps of global distribution may remain the same, the nuances of regional distribution may vary. 

If your brand already has a high-level distribution strategy in place in the areas you are currently selling, then it’s possible to modify and use it to go global.  

2. Consumer Demand

Before expanding to a specific country, marketplace, or entire region (across multiple marketplaces), it’s important you thoroughly research and understand the consumer demand for your product. Do you have data to show that your expansion market(s) has a need for your product? 

Beyond product-market fit, additional parts of consumer demand analysis include: consumer behavior, awareness of differences in cultural norms, and the beliefs and values of international buyers. Having access to data-driven insights and analysis on traffic and conversion, like Pattern’s reporting, is key to understand consumer demand in certain regions. 

3. Product Registration and Regulatory

Countries around the world set up regulations and processes to protect their consumers from any hazardous imports. Because of that, it only makes sense that these countries may have different product registration requirements and standards. Before expanding to new regions, a brand should make sure their products are registered with the appropriate government institutions and follow all production best practices to prevent any roadblocks.

At Pattern, our regional experts have the resources to manage marketplace setup and understand administrative requirements necessary to help scale global growth for your brand. 

4. Localized Pricing

When it comes to localized pricing, international ecommerce retailers should keep in mind two things–currency conversion and customer perception of price. As brands look to expand internationally, thorough research should be done to understand the currency conversions at each stage of the product life cycle in order to figure out the optimal localized pricing, while still retaining a net profit.

Remember, because of cultural differences, final pricing may be perceived differently by customers on international marketplaces. For example, in the western countries, it’s common for prices to end in a 9, but in other countries, it may be best to use a round number instead. High market saturation of certain products may also affect consumers’ perception of pricing, making them more likely to pay a higher price for the product than in a low-saturation market. 

5. Localized Labeling

Different countries and regions may have unique requirements for product labeling. Awareness and understanding of these requirements is key to a successful international strategy. For example, labeling may need to be in a certain language, and some countries may require brands to include certain product information. 

Your domestic team may not be equipped to handle all translations and regulatory conversations, so having the resources in place before attempting to expand globally will help prepare you for expansion. As a global ecommerce partner, Pattern has a team of regional experts and end-to-end resources to ease the pain of complying with local product labeling requirements.   

Build a Successful International Marketplace Strategy With Pattern

Moving into global markets requires a significant amount of research and planning–that usually starts with these 5 considerations. Having a solid strategy in place before your brand starts expanding to international marketplaces will make the overall process much smoother, easier to manage, and with a higher likelihood for success.. 

Going global can be intimidating, costly, and overwhelming to grow revenue, but with Pattern as your 3P trade partner, you’ll have the experience, resources, and data to successfully expand your business internationally. Our global expertise and footprint makes international growth on marketplaces frictionless and profitable. 

Is your brand considering global marketplaces? Contact us


Want to learn more about how Pattern helps brands go global? Watch this message from our co-founder and CEO, Dave Wright.