In 2025, the once-revered Amazon first-party (1P) vendor model is starting to show cracks. Brand owners who once celebrated big purchase orders from Amazon are now watching profits thin, pricing spiral out of control, and PO cycles grow unpredictable. The golden handshake is losing its shine and sellers are fighting to take back control.
This isn’t a passing phase. Shifting from 1P to 3P is a power move, and it’s reshaping the e-commerce battlefield. What used to be a “let Amazon handle it” approach has turned into a high-stakes game where independence, profit margins, and customer data are the prizes.
If you’re still stuck under the Vendor Central ceiling, it’s time to rethink your strategy. Let’s talk about moving from 1P to 3P, not just making the jump, but doing it smart, profit-first, and future-proof.
Understanding Amazon 1P vs. 3P: Why the Shift Matters
What is the Amazon first-party (1P) vendor model?
In the 1P model, Amazon becomes your retailer. You sell your products directly to Amazon in bulk, and they resell to customers. Pricing, inventory, and listing control? That’s all in Amazon’s hands.
While that sounds convenient, brands often find themselves trapped in a cycle of shrinking margins, sudden PO changes, and relentless underpricing.
What is third-party (3P) Seller Central?
In contrast, 3P selling puts the brand in control. With a 3P Seller Central account, you list and sell directly to Amazon customers. You manage your pricing, inventory, advertising, and fulfillment. You also gain direct access to performance data and full flexibility to scale on your own terms.
1P and 3P selling on Amazon serve two very different mindsets. One favors Amazon’s agenda; the other prioritizes your brand’s growth, margins, and identity.
Must read: All You Need to Know About Amazon Third Party Logistics: Pros and Cons in 2025
Step 1: Assess If You’re Ready to Exit the Vendor Bubble
Is your infrastructure built for 3P selling?
Before making the leap, conduct a ruthless audit of your business. The 3P model demands more ownership, but it also unlocks more profit.
- Inventory systems: Are they optimized for B2C fulfillment?
- Pricing strategy: Can you sustain profitable pricing while staying competitive?
- Brand Registry: Are you protected against hijackers?
- Customer service readiness: Can your team handle inquiries, refunds, and reviews?
Moving from 1P to 3P more than just a tech shift, it’s a mindset transformation. You’re no longer handing over the wheel to Amazon. You’re the one driving.
Step 2: Create a Rock-Solid 3P Seller Central Account
3P Seller Central is your new command center
This is the heart of your new sales empire. Setting it up correctly is critical to avoid compliance issues or delays in going live.
- Choose Professional Seller Plan: Don’t bother with individuals, it lacks the tools you’ll need to scale.
- Set up payment and tax info: Have your EIN, bank accounts, and state sales tax IDs ready.
- Enroll in Amazon Brand Registry: Protect your listings, unlock A+ Content, and fight off unauthorized sellers.
A clean Amazon Store Setup and Optimization right from day one sets the tone for everything that follows. A sloppy setup now will cost you later, in ranking, in sales, and in credibility.
Step 3: Migrate Your 1P Product Catalog Like a Pro
Maintain visibility and SEO with a mirror migration
One of the biggest fears when shifting from 1P to 3P is losing momentum. Done poorly, listings can vanish from page one. Done well, you’ll maintain rank, reviews, and conversions without skipping a beat.
Here’s how to migrate right:
- Export your full 1P product catalog from Vendor Central
- Match ASINs exactly to retain search placement
- Replicate content: Use the same bullet points, backend keywords, and images
- Adjust pricing: Now that you control it, make sure you’re competitive but don’t race to the bottom
You’re not reinventing your listings, you’re relocating them into a space where you’re in control. This step is about precision and patience, not speed.
Step 4: Choose the Right Fulfillment Path
FBA, FBM, or hybrid? The answer lies in your goals.
Now that you’re not handing everything off to Amazon as a retailer, you need to decide how your product will reach customers.
Fulfilled by Amazon (FBA)
Pros:
- Prime eligibility
- Higher conversion rates
- Hassle-free logistics
Cons:
- FBA fees can eat margins
- Less control over inventory rotation
Fulfilled by Merchant (FBM)
Pros:
- Greater control over storage and fulfillment costs
- Can be more profitable for oversized or niche products
Cons:
- You handle shipping, returns, and customer satisfaction
Hybrid Model
Savvy Amazon brand owners are now blending both. Use FBA for fast-moving SKUs, and FBM for items with lower volume or tricky handling.
Step 5: Build a Pricing and Advertising Strategy That Wins
You’re the boss now, own the Buy Box
One of the biggest perks of moving from 1P to 3P is the pricing freedom. But with that freedom comes the responsibility to optimize for profit without losing the Buy Box.
Amazon’s algorithm favors:
- Competitive, stable pricing
- Fast, reliable fulfillment (FBA helps here)
- Strong seller metrics (response times, reviews, and shipping performance)
Don’t blindly slash prices to win attention. Instead, focus on value-based pricing with built-in profit margins. Consider using repricing tools that monitor competitors while keeping your minimum price threshold intact.
Dial in your ad spend
Unlike Vendor Central, where Amazon decides when and how to promote your products, 3P selling gives you full control over PPC campaigns. Sponsored Products, Sponsored Brands, and Display Ads are all tools you can leverage.
Target your own branded keywords and defend your space. Also, chase long-tail, high-intent keywords to scoop up more affordable clicks. Once your Amazon Store Setup and Optimization is locked in, direct traffic from ads to your storefront instead of scattered ASINs, it builds brand equity, not just sales.
Step 6: Optimize Relentlessly or Risk Falling Behind
The first 90 days are critical
Launching as a 3P seller isn’t a one-and-done event. It’s an ongoing optimization marathon, especially in the first three months when you’re laying the groundwork for long-term success.
Use data, not guesses
- Dive into Amazon Business Reports to track sales velocity, traffic, and conversion rates
- Set KPIs for ACoS (Advertising Cost of Sale), TACoS (Total Advertising Cost of Sale), and Buy Box win rate
- Leverage third-party analytics tools like Helium 10, Jungle Scout, or DataHawk to uncover gaps in your listings, keywords, and ad strategy
Don’t let performance metrics slip
Seller feedback, order defect rate, late shipment rate, these aren’t just vanity metrics. They’re your passport to long-term credibility. A dip in these scores can lead to account suspension or loss of Buy Box privileges.
Run test campaigns constantly
Experiment with:
- A/B testing your listing titles or images
- Adjusting ad targeting between auto and manual
- Promotions like coupons, lightning deals, or BOGO offers
Success in the 3P space doesn’t come from playing safe. It comes from iterating fast, measuring outcomes, and doubling down on what works.
Know the difference: Ecommerce vs Traditional Commerce – How Consumerism Shifted From Bricks to Clicks
What to Expect Post-Transition: The New Normal
More responsibility, more reward
Once you’ve made the move to 3P Seller Central and stabilized operations, you’ll notice the shift:
- Revenue becomes predictable because you control the levers
- Brand integrity stays intact, no more rogue discounts or outdated images pushed by Amazon Retail
- Customer relationships deepen thanks to direct review responses, seller messaging, and tighter inventory management
You’re not just reacting to Amazon anymore. You’re leading your own charge.
Amazon 1P vs. 3P: Is the Change Really Worth It?
Absolutely. The truth is, 1P may be more comfortable but comfort rarely leads to growth. The 3P model empowers Amazon brand owners to shape their destiny, from price point to profit margins to how the brand shows up on the world’s largest marketplace.
Here’s a side-by-side snapshot:
| Feature | 1P Vendor Central | 3P Seller Central |
| Price Control | Amazon controls | You control |
| Marketing & Ads | Limited | Full access |
| Inventory Risk | Shared with Amazon | Yours to manage |
| Brand Control | Restricted | Full creative freedom |
| Payout Timing | 60–90 days typical | Biweekly payouts |
For brands that want to grow fast and smart, 1P feels like the past. The 3P model is the future.
Switch from 1P to 3P Without Breaking a Sweat?
Transitioning from 1P to 3P might feel like walking a tightrope but you don’t have to walk it alone. At Manage Amazon, we’ve guided hundreds of Amazon brand owners through this exact process from strategy to execution, optimization, and beyond.
Here’s what you get when you partner with us: Full Amazon Store Setup and Optimization, Seamless 1P product catalog migration, Advertising strategy built for scale, Fulfillment guidance tailored to your products and Hands-on support through every transition phase.
The 3P model isn’t a gamble when you have experts in your corner. It’s a calculated upgrade with the right system behind you. Take back control of your Amazon Store. Stop surviving on Vendor Central and start thriving on Seller Central.
