On Amazon, 1P (first-party) and 3P (third-party) describe two fundamentally different relationships with the marketplace. In 1P, Amazon issues a purchase order, buys inventory wholesale from the brand through Vendor Central, and resells it as “Ships from and sold by Amazon.com.” In 3P, the brand or reseller sells directly to shoppers through Seller Central and either fulfills the orders themselves (FBM) or hands them to Amazon (FBA).

How the Two Models Compare

Dimension 1P (Vendor Central) 3P (Seller Central)
Who owns inventory Amazon (bought from you) You
Who sets retail price Amazon You
Payment terms Net 30/60/90 14 days
Fees / deductions Slotting, chargebacks, co-op, damage allowances Referral fee + FBA fees
Access to advertising Sponsored Brands, DSP, Amazon Ads Full ad suite
Access to A+ Content Yes Yes (with Brand Registry)
Access to sales data Basic (ARA Basic or Premium paid tier) Full (Brand Analytics, SQP)
Customer relationship Amazon’s Amazon’s (but you see order-level data)
Invite-only? Yes No — open registration

Why Brands Choose 1P

  • Scale without operational overhead — Amazon handles inventory placement, forecasting, and customer service.
  • “Sold by Amazon” trust badge on the detail page, which measurably lifts conversion for consumer goods.
  • Bulk PO cadence — brands book revenue when Amazon takes possession, not when the shopper buys.
  • No Buy Box competition — Amazon owns the listing outright.

Why Brands Choose 3P

  • Full control over price, promotions, and listing content.
  • Higher gross margin — no vendor chargebacks, damage allowances, or co-op deductions.
  • Faster cash flow — 14-day disbursements versus net 30-90.
  • Access to Brand Analytics, Search Query Performance, and every SP/SB/SD ad type without vendor negotiation.
  • Ability to run promotions and Subscribe & Save without vendor approval.

Why It Matters for Sellers

Many mature brands run a hybrid: 3P for full-margin core SKUs and 1P for high-velocity items where Amazon’s forecasting and Prime badge outweigh the vendor deductions. The wrong choice is expensive — 1P brands often discover a 15-25% margin erosion from cumulative deductions within the first year, while 3P brands running Prime-eligible FBA inventory usually match 1P conversion without giving up pricing power.

How SellerSonar Helps

  • The Buy Box Tracker matters most for 3P — it monitors ownership changes that never affect 1P listings.
  • Retail Issues Alerts surface catalog problems in both models, including chargeback triggers in 1P and suppression events in 3P.

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