Episode 330 - Amazon 1P vs 3P: Which Model Wins in 2026
From The Smartest Amazon Seller by SmartScout
June 2, 2026 · 26 min · Episode 57
About this episode
Scott and Matt discuss the transition between Amazon's Vendor Central and Seller Central, exploring the challenges and strategies for brands in the evolving ecommerce landscape.
Scott is with Matt Snyder, founder of Brands Excel, to discuss one of the most misunderstood transitions on Amazon: moving between Vendor Central (1P) and Seller Central (3P).After years of third-party sellers gaining share, Amazon’s first-party retail business appears to be growing again. Matt explains how tariffs, inventory challenges, margin pressure, and operational complexity have made life harder for many mid-sized sellers, while larger brands continue capturing more market share.The result is a marketplace where the biggest players keep getting bigger.He details the transition from 1P to 3P, including the internal roadblocks that can prevent brands from gaining control of listings, content, and catalogs. Matt also shares how Amazon’s New Seller Success team can sometimes help brands navigate these challenges.Scott and Matt also look at the reverse trend. These are brands moving from 3P back to 1P. In categories like grocery and consumables, Amazon may subsidize pricing and logistics in ways that make the vendor model attractive.There is no perfect model.As ecommerce evolves through AI, social commerce, and changing marketplace economics, brands that know when to shift…
People in this episode
Host: Scott
Guest: Matt Snyder
Topics covered
- Amazon 1P vs 3P
- Vendor Central
- Seller Central
- ecommerce evolution
- marketplace economics
- brand strategy
Keywords
- Amazon
- 1P
- 3P
- Vendor Central
- Seller Central
- market share
- ecommerce
- tariffs
- inventory challenges
- operational complexity
Mentioned in this episode
Organizations: Brands Excel, Amazon, Amazon’s New Seller Success team
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