In a third-party (3P) marketplace, brands sell directly to consumers through retailer platforms like Amazon and Walmart.
In 3P marketplaces, brands are in control of selling their products directly to consumers through retailers, unlike 1P marketplaces where retailers sell the products themselves.
With 3P, brands have a lot more control over their products, including pricing, inventory, and marketing. Brands are also in charge of customer service and maintaining inventory. They can share inventory from one retailer with another retailer, which they can’t do in a 1P marketplace.
They’re also responsible for order fulfillment unless the retailer offers a retailer fulfillment program.