Amazon’s 1P retail model is currently outpacing 3P marketplace growth, driven by large CPG brands consolidating market share. This shift creates significant operational friction for brands caught in the "messy middle," where they must balance profitability against Amazon's increasing demands for funding. Transitioning from 1P to 3P—or vice versa—requires more than just technical adjustments; it demands a strategic alignment with Amazon’s internal leadership principles. Engaging the "New Seller Success" team is essential for navigating bureaucratic roadblocks, such as retail contribution issues and gated listings. While 1P models often serve as "basket builders" for low-cost grocery items through Amazon-subsidized pricing, the long-term viability of either model depends on a brand's ability to pivot as the e-commerce landscape evolves, particularly with the rise of AI-driven listing management and shifting consumer shopping habits. Matt Snyder, founder of BrandsXL, provides this perspective on navigating these complex transitions.
Sign in to continue reading, translating and more.
Open full episode in Podwise