A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.
Amazon gives you the choice to choose between two of its business models- A first-party relationship (1p) or a third party relationship (3p). A 1p relationship means Amazon acts as the retailer, and you operate as a wholesale supplier to Amazon. You need to be invited by Amazon directly in order to sell to Amazon in 1p capacity. Amazon then sends you a purchase order (PO) that you need to fulfill and ship the product back to Amazon. The ownership of the item then lies with Amazon and it’s up to it how the product will be priced in the marketplace.