Vendor Central (1P) or Seller Central (3P)? It’s the most common question we get. We break down the pros and cons of wholesale versus direct-to-consumer on Amazon, and why a hybrid approach often yields the best margins.
1P vs 3P: The False Dichotomy of Marketplace Strategy
“Should we sell to Amazon (Vendor) or on Amazon (Seller)?” At Oratio, we hear this question weekly. The answer is rarely one or the other. In 2025, the most sophisticated brands treat Amazon not as a binary choice, but as a fluid ecosystem.
Vendor Central (1P): The Wholesale Game
- Pros: Simplified logistics (Amazon buys the stock), perceived trust (“Sold by Amazon”), access to certain marketing tools.
- Cons: Loss of pricing control (Amazon dictates the street price), strict chargebacks, lack of customer data.
Seller Central (3P): The Retail Game
- Pros: Total control over price and inventory. Direct access to analytics. Agility to launch new products instantly.
- Cons: You are responsible for VAT, logistics (FBA), and customer service.
Why Hybrid Wins We engineer Hybrid structures for our clients. We use 1P for high-volume “Craps” (Can’t Realize A Profit) items that are heavy/cheap to ship, letting Amazon take the logistics hit. We use 3P for new launches, premium bundles, and high-margin SKUs where we want strict price protection. Don’t let Amazon dictate your model; build a model that leverages Amazon.