The Imperative Shift for Brands Towards Third-Party (3P) Sellers
The transition from first-party (1P) to 3P is rapidly spreading worldwide. Why is this shift occurring? The answer lies in the sales data: 3P sales are growing at double the pace of 1P sales. Given this paradigm shift, it is vital to ponder the advantages of becoming a 3P seller on Amazon.
As a premier Amazon seller, Pathway Products aids brands in transitioning from 1P to 3P, while also serving as a valuable partner in managing and enhancing brand sales and revenues. Here's why an increasing number of brands are opting for the 3P model:
Enhanced Control Over Brand and Marketplace
By working with a 3P partner like Pathway Products on Amazon and other platforms, brands can better control their marketplace presence and brand image, circumvent Buy Box suppression, and possibly resolve price control issues. Partnering with a 3P service ensures price stability and profit growth on Amazon and other retail channels. With pricing and distribution under firm control, brand managers can devote more time to comprehensive distribution strategies, which can strengthen their position in brick-and-mortar retail.
Greater Access to Data and Resources
One of the major pain points for 1P sellers on Amazon and other platforms is the scarcity of data and resources for making informed decisions. A 3P partner equips brands with the necessary resources and expertise for growth across all marketplaces. At Pathway Products, we believe in empowering our partner brands with access to comprehensive data for informed decision-making and to unlock growth opportunities. Harnessing the power of data allows brands to expedite their profitable growth across all channels.
Reallocation of Time and Money for Greater Efficiency
For a 1P seller, the decision-making around time and financial resource allocation can be overwhelming. For instance, focusing on online marketplace growth may adversely affect your brick-and-mortar operations, or vice versa. On Amazon, brands often have to invest significant time and budget dealing with chargebacks, tickets, or coordinating with their Amazon brand manager. By collaborating with a reliable 3P partner like Pathway Products, your team can redirect time and resources towards other important areas of your business.
Why Pathway Products for your 3P Transition?
Approximately a third of global brands are already partnering with 3P sellers, with many others contemplating the switch. Understanding the pros and cons of the 1P versus 3P model can guide you in making the best decision for your brand.
As a preeminent 3P partner and top Amazon seller, Pathway Products eases the transition for brands moving from 1P to 3P and ensures continual growth thereafter.
Thinking of transitioning to a 3P model? Get in touch with us.
