When it comes to Amazon, there are 2 ways to sell direct:
- A brand owner run, control, and manage its presence on Amazon marketplace via 3P (Seller Central). This means, of course, sales revenue also goes directly to the brand
- A distributor or a reseller represents the brand on Amazon by selling through its’ Amazon seller account. In this scenario the reseller receives revenue from Amazon sales, but the brand can determine amount of control this distributor can have for the brand presence
- A hybrid approach – both the brand owner and reseller(s) co-exist on Amazon marketplace and, thus share revenues
How do you decide whether you should go direct on Amazon, or allow a trusted reseller deal with Amazon?
There are 3 main factors to consider:
- Strategic importance
Watch this video to learn benefits and risks of sell direct. through a distributor, or have a hybrid approach to Amazon.