Amazon sells your products on a wholesale relationship. You send your inventory to Amazon, they control your pricing and your listing displays as "Ships from and sold by Amazon.com."
You sell your products on Amazon's marketplace and you have Amazon fulfill your orders from their fulfillment centers (Fulfillment by Amazon, FBA) and/or you can fulfill orders from your own warehouse or 3rd party warehouses (Fulfillment by Merchant, FBM).
As 3P sellers that control their own brand become successful, they are commonly approached by Amazon Retail about selling direct to Amazon (1P). This is a flattering proposition that should be carefully considered. As with anything, there are pros and cons.This article on 1P vs 3P by our friends at Buy Box Experts is extremely insightful.
Many successful sellers (brands, manufacturers) find themselves in a hybrid arrangement with Amazon where they're selling a portion of their SKUs direct (1P) and the remainder on the marketplace (3P). Amazon's merchandising teams are often selective about the SKUs that they decide to carry 1P. The math needs to make sense, this means some SKUs are left to be sold 3P if at all.
We believe it's most ideal to sell only 3P. This is the surest way to protect your brand. If you sell 1P, we hope you will also find ways to sell at least a subset of your SKUs 3P to take advantage of the benefits outlined above.
Zentail supports sellers that sell 1P and 3P. Let us know if you have any questions.
Zentail is a multichannel software platform that makes it easy to sell on Amazon, eBay, Walmart Marketplace, Jet.com, Google Shopping, Shopify, Bigcommerce and a growing selection of channels. Centrally manage products, listings, inventory, and orders from one beautiful interface. Get more done faster.