A major shift in the European 1P landscape: Amazon is focusing on sourcing directly from brand owners. We explore what this means for distributors and why shifting to a Hybrid or 3P model is now critical for survival.
The Middleman Squeeze: Amazon’s Shift to Direct Sourcing
The writing has been on the wall for years, but the execution is now undeniable. Amazon Europe has begun systematically offboarding thousands of distributors and wholesalers from its Vendor Central (1P) program. The message is clear: if you are not the brand owner or the exclusive manufacturer, Amazon does not want to talk to you.
Why is this happening? It’s a margin play. Amazon wants to recapture the margin that distributors take. By sourcing directly from the brand, they can offer lower prices to consumers while improving their own profitability.
The Impact on Brands If you relied on a network of distributors to sell your product on Amazon, your sales channel is about to fracture. You are losing control. Your distributors will lose their Buy Box eligibility or their POs (Purchase Orders) will simply dry up.
The Hybrid Solution This is the wake-up call brands needed. Relying solely on 1P (Vendor Central) was always risky. We advise a Hybrid Model:
- Direct 1P: Maintain a direct relationship with Amazon for your core assortment.
- Owned 3P (Seller Central): Launch your own storefront. This gives you control over pricing, inventory, and branding when Amazon stops ordering.
The era of passive distribution is over. You must own your channel.