First-party sellers (1P) on Amazon establish partnerships with the e-commerce giant to sell their products directly to Amazon for resale on the Amazon Marketplace or through Amazon Business.

In a 1P relationship, vendors enter an agreement with Amazon, where Amazon acts as the retailer while the vendors fulfill purchase orders. 1P sellers focus on product fulfillment, while Amazon handles the rest of the sales process.

How It Works

Vendors sell their products directly to Amazon using Vendor Central. Amazon then sells those products to consumers shopping in the marketplace. This arrangement has several benefits but also some downsides. For instance, Amazon can sell your products at prices above or below your recommended sales price, giving you no control over the final selling price.

Benefits of Selling Products Directly to Amazon as a 1P Seller

Benefit #1: Exclusive Access 1P sellers have exclusive access to manage their product listings and fulfill Amazon purchase orders using Vendor Central. In contrast, third-party (3P) sellers can only access their products and purchase orders on Seller Central unless invited by Amazon to become 1P sellers.

Benefit #2: Enhanced Marketing Opportunities 1P sellers can boost their products via Amazon marketing campaigns and promotions. Amazon’s proprietary algorithm uses first-party data to target the right customers at the right time, enhancing the effectiveness of marketing efforts.

Benefit #3: Increased Purchase Orders The more products you sell as a 1P seller, the more Amazon will buy from you. Consistently high sales ranks can lead to more purchase orders, creating an income stream with unlimited earning potential. High-ranking products on Amazon’s Best Sellers list require less marketing effort while generating significant revenue.

Benefit #4: No Inventory Forecasting Required Amazon handles inventory forecasting internally for 1P sellers, freeing them from this tedious task. This allows sellers to focus more on product marketing and fulfillment.

Benefit #5: Trusted Packaging and Branding Products shipped by first-party sellers come with Amazon’s proprietary packaging and logos, featuring the “Shipped and Sold by Amazon” label. This builds trust with marketplace customers and enhances the brand’s credibility.

How to Become a 1P Seller on Amazon

Amazon invites first-party sellers to join the marketplace. Once invited, 1P sellers fulfill purchase orders sent by Amazon and send the products directly to Amazon. Amazon then takes control of the pricing, selling, and shipping processes.

1P vs. 3P Sellers on Amazon’s Global Marketplace

First-Party Sellers (1P):

• Pay chargeback fees and sales fees.
• Use Vendor Central to update product listings and manage orders.
• Have products priced, sold, and shipped by Amazon.

Third-Party Sellers (3P):

• Control their product pricing and sell directly to consumers.
• Use Seller Central to manage branded product listings.
• Pay various structured marketplace fees, including referral fees, minimum referral fees, variable closing fees, and other platform fees as required.

For more information on Amazon Seller Fees, click here.