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In a first-party (1P) marketplace, the brand serves a wholesale supplier for the marketplace, which acts as the retailer and sells directly to the customer.
1P marketplaces are more traditional for brick-and-mortar retailers. The brand’s sole responsibility is to provide wholesale supplies to retailers like Amazon and Walmart, and the retailer will take it from there.
The retailer will control things like pricing, marketing, and delivery. From the consumers' perspective, products appear to be sold by the retailer, which can help grow trust. However, inventory may suffer because it can’t be shared across retailers.
If you’re selling on Amazon in a 1P capacity, your products will be sold to Amazon and will be resold to customers. Your chances of winning the Buy Box will be higher because Amazon will be in the driver’s seat.
A 1P marketplace is different from a third-party (3P) marketplace, where brands are in charge of selling their products directly through the marketplace.
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