Amazon 1P vs 3P: Selling to Amazon or on Amazon?

Picture two doors.

Behind the first, Amazon opens its warehouse to you: it buys your products, stocks them on its shelves, and sells them to customers. You just ship the goods and wait to get paid. It’s convenient. It’s safe. But you give up almost all control.

Behind the second door, it’s a different story: you’re the seller. You set the price, manage your brand, and own the customer relationship. But you’re also on your own—up against millions of buyers, algorithms, and competitors. It’s tougher. But the control is all yours.

These two options reflect Amazon’s 1P (First-Party) and 3P (Third-Party) selling models. And choosing the right one can completely change the future of your business.

What is Amazon 1P (Vendor Central)?

As a 1P seller, Amazon becomes your wholesale buyer. You sell your inventory directly to Amazon, and it resells it to customers under the “Sold and shipped by Amazon” label—a tag that builds trust with buyers.

You’ll need an invitation to join Vendor Central. It’s not open to everyone.

How does it work?

• Amazon sends you a purchase order.

• You invoice and ship the products.

• Amazon handles pricing, promotions, and product visibility.

• You wait to get paid—Amazon controls the payment terms.

1P advantages:

• More visibility and credibility for your products.

• No need to deal with end customers.

• Access to enhanced content and marketing tools.

1P downsides:

• Amazon sets the prices.

• Unequal relationship—Amazon can cut prices at will.

• Payment flows can be unpredictable.

• Entry is exclusive—you need an invite.

What is Amazon 3P (Seller Central)?

The 3P model is the core of Amazon’s marketplace. You open your own store and sell directly to customers—no invitation required, just a solid product and strategy.

You can fulfill orders yourself (FBM, Fulfilled by Merchant) or let Amazon handle logistics through FBA (Fulfillment by Amazon).

How does it work?

• Open a Seller Central account.

• Upload your listings, set your prices, run campaigns.

• Amazon collects payment; you fulfill the order (or they do, with FBA).

• You get paid every 21 days via Amazon disbursements.

3P advantages:

• Full control over pricing, branding, catalog, and fulfillment.

• Higher margins—you’re selling retail, not wholesale.

• Ability to scale across countries on your own terms.

3P downsides:

• High competition.

• More operational effort if not using FBA.

• You’re responsible for returns, reviews, and delays.

Key Differences: Amazon 1P vs 3P

Here’s a quick comparison to help you understand the main differences between these two models. Even if you’re not currently invited to 1P, understanding both can help shape your Amazon strategy.

Which is the best model for you?

This isn’t about which model is better—it’s about what fits your business strategy and stage of growth. Here are a few things to consider:

Go 1P if:

• You have large production capacity.

• You want to focus on manufacturing, not direct selling.

• You’re okay with lower margins and less control in exchange for scale and visibility.

Go 3P if:

• You’re just getting started or want to grow step by step.

• You want to keep control of pricing and protect your margins.

• You’re building a strong brand and want customers to remember you, not Amazon.

• You want more control over your cash flow. Services like Wannme offer daily payouts based on your last 24 hours of sales—ideal for reinvesting fast in stock or new markets. Reach out if you want to learn more about how this works.

Final thoughts

Amazon isn’t just a sales channel—it’s an entire ecosystem.

And like any ecosystem, there’s more than one way to live in it. You can be a cog in Amazon’s machine… or carve out your own space within it.

So the question isn’t just “Should I sell on Amazon?”—but rather:

Do you want Amazon to be your client—or your storefront?