To Sell on Amazon or Not to Sell

24 Mar

Should We Sell Our Products to Amazon

As the largest online retailer in the world, Amazon is Americans’ preferred option when it comes to online shopping. For instance, in September 2019, over 150 million Americans accessed Amazon via the Amazon mobile app.

With millions of customers, Amazon offers an excellent platform for businesses looking to sell their products online. First Party Selling (1P) and Third Party Selling (3P), are the two ways companies can use the Amazon platform to sell products. 

In this article, you’ll learn about First Party and Third party selling on Amazon and know whether you’re better off selling to Amazon or on Amazon.

Becoming a First Party Seller

If your products are performing well, Amazon may reach out to your company and request you to become their vendor. In turn, they will handle the marketing, distribution, and sale of your products. 

However, their bulk orders come with a discount request of between 15% and 25%, and payment for goods usually takes 60-90 days. The benefits of selling directly to Amazon include: 

  • Your products will be in front of millions of customers in a matter of days
  • Amazon handles all the marketing and logistics
  • Amazon will handle customer service and returns
  • You do not need to worry about inventory management

Third Party Selling On Amazon

Amazon has a Seller Central Interface, which allows businesses to sell their products via the Amazon platform. However, unlike 1P, Third Party Selling involves monitoring listings and navigating the complex Amazon ecosystem. This requires a lot of time and effort, and often businesses need to hire someone for this.

Organizations that prefer retaining control of their brand but do not have personnel dedicated to handling the Amazon side of the business can partner with 3P resellers. 

The benefits of Working With a 3P Partner include:

  • You gain a partner that’s dedicated and adept to handling Amazon need
  • Safeguards you from race-to-the-bottom price competitions
  • Free marketing and optimization

Are Third Party Partners Worth It?

More and more businesses are opting to set up their own third party seller accounts or work with 3P retailers than become First Party Sellers. However, one of the biggest Amazon mistakes brands make is not having a team capable of maintaining an Amazon presence. 

Working with a third party retailer eliminates such challenges and affords you all the benefits of being a First Party Seller. TLK Sourcing is a third party retailer that offers brands specialized e-commerce sales assistance. Get in touch with us today to get your products maximum exposure on Amazon. 

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