Selling products on Amazon is a vital opportunity for any brand. Amazon is one of the world’s biggest marketplaces and the first shopping destination for many consumers. With such a huge reach, Amazon sales can quickly outpace a brand’s ability to manage the process! Learn why brands need a third-party partner for Amazon and see how 3P sales partners can improve results for any size or type of company.
Why Do Brands Want To Go It Alone At Times?
Selling at scale on Amazon can easily overwhelm any company, but some brands still try to manage the process themselves. There are several reasons why brands want to keep the sales experience in-house. These companies may have already invested in an e-commerce solution or hired an internal team to handle sales. Hands-on entrepreneurs who built their business from the ground up often struggle to trust anyone else with major responsibilities like sales. Brands may also want to protect their first-party (1P), direct-selling relationship with Amazon.
What Drawbacks Are There To Managing Amazon Sales On Your Own?
No matter why brands want to hold on to Amazon sales, the process is still unwieldy, complicated, and resource-intensive. There are many drawbacks to sticking with 1P sales instead of upgrading to a 3P model.
Amazon’s size is a blessing but also a curse. Since so many brands sell on Amazon, the platform can’t provide equal attention to all companies. Amazon is also reducing its direct relationships with smaller brands. Small and mid-size brands aren’t supported, protected, or helped to grow by Amazon. These trends mean that companies below top-tier or below $100 million struggle to thrive on the sales platform. Small businesses find they can’t control their brand integrity, pricing, or stock levels through 1P sales.
Managing the Amazon Marketplace also requires a unique set of skills that brands may not possess. Many companies can successfully serve customers through their own websites or via traditional store offerings. The Amazon Marketplace is a completely different situation. Brands often struggle to manage the changing landscape of Amazon sales.
What Benefits Emerge When You Engage a Third Party Partner For Amazon?
Working with a 3P partner immediately makes the Amazon Marketplace more profitable, efficient, and enjoyable. Third-party partners provide better service than Amazon because they work directly with brands. Amazon views your company as just another cog in the machine. A 3P seller, on the other hand, is a true business partner. You can extend and enhance your e-commerce team as soon as you bring on a 3P company.
Reputable 3P partners handle the full scope of Amazon sales. The third-party seller takes on brand protection, supply chain and fulfillment, customer experience, back-office tasks, marketing, and account management. Your company is freed up to focus on innovation, customer service, and your other goals.
A 3P partner helps companies maintain strong brand control, pricing, stock levels, and customer service. These partnerships provide options to boost sales velocity while maintaining your brand’s customer service philosophy. Companies that use a 3P partner enjoy lower fees, higher margins, faster payments, and more support and flexibility to update listings. You can even explore multi-channel fulfillment when it’s time to expand beyond Amazon.
Are you ready to make the most of your brand’s Amazon presence? Contact Phelps UNITED today to discuss reducing your costs and improving your margins through 3P sales.