Shifting from 1P to 3P: How to Navigate the Amazon Fulfillment Ecosystem By TOM WICKY, Co-Founder & CEO, MyFBAPrep
GLOBAL CONSUMER TRENDS: Social Commerce to Dominate Surveying 24,000 online shoppers across 24 global markets, the Ecommerce Trends Report 2025 from DHL eCommerce finds: • Social commerce rules: 70% of global consumers expect to shop primarily through social media by 2030— bypassing traditional websites entirely. • AI becomes essential: 7 in 10 shoppers want AI-driven shopping tools—from virtual try- ons to voice search—to guide their decisions. • Marketplaces are the go-to shopping spots for consumers worldwide. But preferences vary by country, and each market has its own leading platforms. Top Ecommerce Marketplaces UNITED STATES:
in response to fluctuating tariff costs and market conditions. By optimizing pricing dynamically, sellers can safeguard their profit margins and stay competitive despite rising costs.
2. Improved Profitability One of the major
drawbacks of the 1P model is Amazon’s markup on wholesale pricing. When selling as a 3P seller, brands
Amazon opened its network to independent sellers by creating Fulfillment by Amazon (FBA) in 2006.
bypass these additional costs, leading to higher margins per unit sold. Moreover, Amazon’s fees for storage and fulfillment (via FBA) can often be optimized through strategic inventory planning, further enhancing profitability. 3. Diversified Risk Exposure Relying solely on Amazon as a wholesale buyer presents risks, especially when policy changes, supply chain disruptions, or sudden contract renegotiations occur. By shifting to 3P, sellers can diversify their sales channels across multiple platforms, including Walmart Marketplace, eBay, Shopify, and direct-to-consumer websites. This multi-channel approach not only reduces dependency on Amazon but also strengthens business resilience against external economic pressures. Future-Proofing Your Business Against Tariff Volatility The move from 1P to 3P is not just a short-term response to tariffs—it’s a long- term strategy for protecting margins, enhancing operational flexibility, and ensuring sustainable growth. With global trade policies continuing to evolve and the ecommerce landscape becoming increasingly complex, sellers who take proactive steps today will be better positioned to withstand future uncertainties.
Recent shifts in international trade policies, particularly the introduction of higher tariffs on Chinese imports, have placed increasing financial pressure on Amazon sellers. For businesses relying on the first-party (1P) marketplace—where Amazon purchases inventory directly from suppliers—these changes have amplified the challenge of maintaining profitability. Rising costs squeeze margins, leaving many brands searching for alternative strategies to remain competitive. As a result, an increasing number of sellers are reconsidering their approach and transitioning to the third-party (3P) marketplace. This shift allows businesses to sell directly to consumers via Amazon’s marketplace, rather than operating as wholesale suppliers to Amazon. By adopting 3P, sellers can take control of pricing, manage costs more effectively, and establish greater flexibility in their fulfillment strategies. Why 3P Is Gaining Traction Many brands that previously thrived under the 1P model are making the leap to 3P due to the financial and operational advantages it can provide: 1. Pricing Flexibility Unlike 1P sellers, who must adhere to Amazon’s pricing model, 3P sellers retain full control over their pricing strategy. This autonomy allows them to adjust retail prices
Amazon 82% Walmart 62% eBay 38% GLOBAL: Amazon 60%
Temu 32% Shein 26% eBay 15% Alibaba/AliExpress 11% Zalando 11% Vinted 9%
Percentage of online shoppers surveyed by DHL
June 2025 • Inbound Logistics 61
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