Why Brands Should Shift to 3P Sellers

Katie Lavin

May 5, 2023

Why Brands Should Shift to 3P Sellers

According to Pattern’s most recent Amazon Vendor Survey for brands selling in Europe, 1 out of 3 brands are currently 3P, and we see this becoming a global trend. More and more 1P seller brands are making the switch to 3P, but why? According to our Amazon data, sales for 3P sellers are 2x as fast as 1P sales. As 1P shifts to 3P sellers, it’s time to seriously consider the benefits of being a 3P seller on Amazon.

Pattern, an ecommerce accelerator and top seller on Amazon, helps brands shift seamlessly from 1P to 3P as well as manage the brand as a 3P partner, ultimately driving more sales and creating more revenue. Here’s a few reasons why brands are making the switch to 3P:

1. Increase in Brand and Marketplace Control

Working with a 3P partner on Amazon and other marketplaces helps brands increase their brand control online and more easily communicate their brand to consumers. With an approved 3P partner brands are controlling the images, videos, and copy that correctly represent their products. With distribution and online branding under control, brand executives have more time to devote to higher-level strategy, giving them better leverage across retail channels, including with brick and mortar.

2. Access to More Resources and Data

We hear from countless brands that part of the frustration of being a 1P seller on Amazon and other marketplaces is the lack of data and resources they are provided to make informed decisions. A 3P partner that knows how to grow and succeed on ecommerce marketplaces needs the right information to do so, and are able to give brands all the resources and expertise they need to grow across online channels.

At Pattern, part of our partnership model is to provide our brands access to all available data to make informed decisions and optimise growth levers. Having the right data helps brands accelerate their profitable growth on all channels.

3. Potential for International Growth

The potential revenue in international marketplaces is massive, but it can be an overwhelming process and decision for a 1P seller to grow globally. As a 1P Amazon seller, your Amazon vendor manager (VM) is completely different for each region you may want to expand to such as Canada, Mexico, Europe, or Japan. Figuring out who the Amazon VM is in those regions is difficult, and trying to set up a meeting with them is even worse. A 3P partner, like Pattern, has marketplace experts, with experience and resources, in multiple regions to scale global growth on all global marketplaces.

4. Save Time and Money That Can Be Allocated Elsewhere

As a 1P seller, deciding where to spend your time and money is overwhelming. For example, if you focus on driving growth on online marketplaces, your brick and mortar may suffer or vice versa. On Amazon, a brand’s budget and time is often spent dealing with chargebacks, tickets, or waiting to talk to their Amazon brand manager. With a trusted 3P partner, who takes care of Amazon end-to-end, your team’s time and budget can be invested in other areas of your business.

Shift to 3P With Pattern

With about one-third of global brands already working with a 3P seller and many more shifting to 3P, it’s worth considering why they’re making the switch. Although 3P may not be for everyone, knowing the benefits and drawbacks of 1P vs. 3P can help you make the right decision for your brand.

As the world’s foremost ecommerce accelerator, 3P partner, and top seller on Amazon, Pattern helps ease the challenges for brands switching from 1P to 3P, and manages the brand growth thereafter. We’ve helped hundreds of brands reap the benefits of being a 3P seller by providing them with our resources, expertise, and data.

Considering switching to 3P? Contact us.

Discover more insights by downloading our annual Amazon Vendor Survey EMEA

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