'Switch to 3P!' or 'Use a 2P broker model!" are common themes in the #Amazon bub
By Martin Heubel ยท May 1, 2026 ยท Curated by George's Blog
'Switch to 3P!' or 'Use a 2P broker model!" are common themes in the #Amazon bubble here on LinkedIn.
The problem is: ๐จ๐๐ถ๐ป๐ด ๐ฎ ๐ฎ๐ฃ ๐๐ผ๐ป'๐ ๐ณ๐ถ๐ ๐๐ผ๐๐ฟ ๐บ๐ฎ๐ฟ๐ด๐ถ๐ป๐. โ
It doesn't address your lack of distribution control. Resellers will continue to dilute prices of your listings and drive down margins, unless you prioritise the introduction of a selective distribution.
Amazon's fair pricing policy will suppress the 2P Buy Box offer at uncompetitive price points. Amazon US may even exclude the 2P offer altogether through its Standards for Brands Policy.
But even if that's not the case:
Brokers will cherry-pick and only take listings most profitable to them. After all, they must turn a profit by selling your product. The items causing the most friction in your 1P relationship remain unaddressed.
So when reading about moving your vendor business to Seller Central or a 2P, it's critical to question the service provider's motives.
(Especially if they also offer marketing services that target your ad budgets.)
To be clear, I'm not against brokers who truly assist brands in addressing the root causes of low vendor margins with Amazon.
But for most multinationals, 2P won't fix their 1P margins. It's merely a risk diversification play.
#amazonvendor #amazonstrategy