Amazon 3P vs 1P: What Brands Need to Know in 2025

If you’re a brand selling on Amazon—or planning to—there’s one decision you can’t afford to get wrong: 1P or 3P?

Choosing between Amazon 3P (Third-Party) and Amazon 1P (First-Party) is more than just picking a logistics model. It’s a strategic business decision that impacts pricing, margins, control, branding, and how you grow in 2025 and beyond.

In this post, we’ll break down how each model works, compare the pros and cons, and help you decide which selling strategy aligns with your goals.

What Is Amazon 1P?

Amazon 1P (First-Party) means Amazon acts as the retailer. You sell your products wholesale to Amazon via the Vendor Central platform, and Amazon resells them to customers.

Think of it like a traditional retail relationship:

• Amazon buys inventory from you
• They control pricing, promotion, and fulfillment
• You get paid based on negotiated wholesale rates

You’ll often see 1P listings marked as “Ships from and sold by Amazon.com.”

➡️ Learn more about Amazon Vendor Central

What Is Amazon 3P?

Amazon 3P (Third-Party) means you are the seller, listing products directly to customers through Seller Central. You can either fulfill orders yourself (FBM) or use Amazon’s warehouses (FBA – Fulfillment by Amazon).

In this model:

• You control your pricing, promotions, and listing content
• You pay referral fees and fulfillment costs, but keep the retail margin
• You manage inventory and sales performance directly

Most brand-first DTC sellers today choose the Amazon 3P model.

➡️ Overview of Seller Central features

Amazon 3P vs 1P: Pros and Cons

Let’s break down the key differences that matter most to brand leaders in 2025:

Why More Brands Are Choosing Amazon 3P in 2025

The shift from 1P to 3P isn’t new—but it’s accelerating.

In 2024, more than 60% of Amazon’s GMV came from 3P sellers [source]. And in 2025, that trend is only growing as brands seek:

• Greater margin control
• Faster speed to market
• Brand consistency across all marketplaces
• Improved data visibility for marketing and inventory planning

With the right strategy, Amazon 3P becomes a powerful DTC sales engine—not just a marketplace channel.

➡️ Business Insider: Why more brands are shifting to 3P

When Amazon 1P Still Makes Sense

That said, Amazon 1P isn’t dead.

Large CPG brands or manufacturers with traditional retail operations may still prefer 1P if they:

• Rely on Amazon for bulk POs and retail distribution
• Lack the infrastructure for direct fulfillment or inventory management
• Want to offload demand planning and logistics

But even these brands are increasingly exploring hybrid models—using 1P for core SKUs and 3P for launching new products or managing niche catalogs.

➡️ Amazon Help: 1P chargebacks and dispute process

Strategic Considerations for Brands

Before choosing a path, ask:

• Do we need control over pricing and promotions?
• Can we support Amazon fulfillment via FBA or FBM?
• Are we trying to build a long-term brand or just drive volume?
• Do we want direct access to performance data to fuel growth?

If your answers lean toward control, data, and brand equity, Amazon 3P is likely the better fit.

Partnering With the Right 3P Experts

Running an Amazon 3P business isn’t “set it and forget it.” It takes active management—across SEO, ads, pricing, inventory, and more. That’s where GoAmify comes in.

➡️ Amazon Advertising: Getting started with Sponsored Ads

We partner with brands to:

• Optimize their Amazon 3P setup
• Grow their listings with strategic PPC + content + promotions
• Navigate platform changes and retail media complexity
• Protect brand equity while driving performance

Whether you’re transitioning from 1P or starting fresh, we can help build a scalable strategy that aligns with your long-term brand goals.

📈 Let’s make Amazon 3P work for you.