When you start selling with Amazon and Walmart, you have the option to choose if you want to operate as 3P vs 1P seller. The distinction between a 1P and 3P model revolves around who manages the inventory and fulfillment.
3P (Third-party): This means your brand is the retailer and sells directly to consumers via the marketplace.
When operating as 3P, you are able to set your own prices which allows you to protect your profit margins. This option also allows you to improve your brand exposure, as well as control your own inventory so you have the ability to sell across multiple sales channels.
Walmart Seller: https://seller.walmart.com/
Amazon Seller: https://sell.amazon.com/start
1P (First-party): This means the marketplace acts as the retailer and your brand is the wholesale supplier.
Operating as a 1P vendor this means you sell directly to the marketplace, and then the marketplace sells to consumers. A couple of key benefits of 1P is that marketplaces have a higher likelihood of promoting their own listings and they purchase inventory in bulk which eliminates the need for you to manage customer interactions and reduces inventory risks.
Walmart vendor/supplier: https://supplier.walmart.com/home
Amazon vendor/ supplier: https://sell.amazon.com/start
What’s the difference in Flywheel?
If you have one type of connected account (review how to connect your marketplace ads and product data here: Amazon and Walmart); the Product Catalog flyout will not have additional selections and bring you directly to the type of catalog for your account. However, if you support both 1P and 3P connections, you will see an option to select one in the flyout:
1P = Vendor Product Catalog
3P = Seller Product Catalog
Next: Understand Product Catalog basics
Basic functionality of the catalog types are the same; see Intro to Product Catalog to understand navigation and core functionality.
Then: Learn more about the data differences between Seller & Vendor Catalog types
Basic functionality is mostly the same, but there are some key data differences between the Vendor and Seller Catalog to understand. This article highlights the data differences and calculation details depending on the type of catalog you are reviewing. Additionally, there are a few 1P limitations to be aware of.