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Seller vs. Vendor vs. Broker

CHOICE.

Amazon'ssellingmodelscompared.30+pagee-book,free.
4Models

Seller · Vendor · Hybrid · Broker

8Dimensions

Logistics · Compliance · Costs · more

1Framework

Radar chart + decision matrix

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Inside the E-Book

WHAT YOU'LL LEARN.

The 4 Amazon Selling Models

Seller, Vendor, Hybrid, and Broker explained side by side with key characteristics.

8-Dimension Comparison

Logistics, compliance, costs, personnel, risk, and more — compared across all models.

Personnel & Cost Reality

Seller: 3–5, Vendor: 1–2.5, Broker: 0.5–1.5 FTEs — backed by operational data.

Decision Framework

Radar chart and decision matrix to find your best-fit Amazon selling model.

Amazon Business Models

WHAT ARE THE AMAZON SELLING MODELS?

There are four main ways to sell on Amazon. Each model offers different levels of control, workload, risk, and dependence. Understanding the differences is essential before choosing your strategy.

Amazon Seller

(3P)

Max control, max effort.

You run everything on Seller Central — pricing, content, logistics, compliance. Direct B2C sales through Amazon Marketplace with full control over promotions and advertising.

Best for: D2C brands with strong e-com teams

Amazon Vendor

(1P)

Low effort, low control.

Amazon buys your products wholesale and becomes the retailer. Less operational work, but you give up pricing control and depend on Amazon's ordering algorithms.

Best for: Established manufacturers with high-volume SKUs

Amazon Hybrid

(1P + 3P)

Both channels, double complexity.

Seller + Vendor simultaneously. Greater assortment flexibility but increased complexity, potential pricing conflicts, and duplicated workflows.

Best for: Brands already on Vendor wanting more flexibility

Amazon Broker

(B2B2C)

Outsourced ops, strategic flexibility.

An intermediary buys your products B2B and sells them B2C on Amazon under their own account. You keep strategic influence while the broker handles operations, compliance, and tax.

Best for: Brands expanding internationally without infrastructure

What Do 1P, 3P, and Broker Mean?

1P (First-Party) refers to the Vendor model where Amazon purchases products wholesale and resells them as the retailer. 3P (Third-Party) refers to the Seller model where brands sell directly to customers through Amazon's marketplace. The Broker model (B2B2C) introduces a third pathway: an intermediary buys products from the brand and sells them on Amazon under the broker's own account, handling all operational and legal responsibilities.

Strategic Profile

AT A GLANCE.

Low RiskLow Op.BurdenControlScalabilityMarketAccess
Seller (3P)
Vendor (1P)
Hybrid
Broker

Seller

(3P)

Max control, max effort.

You run everything on Seller Central — pricing, content, logistics, compliance. Direct B2C sales through Amazon Marketplace with full control over promotions and advertising.

Best for: D2C brands with strong e-com teams

Vendor

(1P)

Low effort, low control.

Amazon buys your products wholesale and becomes the retailer. Less operational work, but you give up pricing control and depend on Amazon's ordering algorithms.

Best for: Established manufacturers with high-volume SKUs

Hybrid

(1P + 3P)

Both channels, double complexity.

Seller + Vendor simultaneously. Greater assortment flexibility but increased complexity, potential pricing conflicts, and duplicated workflows.

Best for: Brands already on Vendor wanting more flexibility

Broker

(B2B2C)

Outsourced ops, strategic flexibility.

An intermediary buys your products B2B and sells them B2C on Amazon under their own account. You keep strategic influence while the broker handles operations, compliance, and tax.

Best for: Brands expanding internationally without infrastructure

Head-to-Head

SELLER VS. VENDOR VS. BROKER.

DimensionSeller (3P)Vendor (1P)Broker
Control LevelFullLowStrategic
Operational BurdenHighMediumLow
Compliance & TaxBrand handlesAmazon handlesBroker handles
Team Required3–5 FTEs1–2.5 FTEs0.5–1.5 FTEs
Market AccessPer-country setupAmazon decides12+ via Broker
Time to LaunchWeeks to monthsInvitation onlyFast go-live
Pricing ControlFullNone (Amazon sets)Shared
Risk ExposureAccount suspensionCRaP & delistingShifted to broker

Full comparison across all 8 dimensions available in the free whitepaper.

Advantages & Disadvantages

PROS AND CONS.

Seller (3P)

Advantages

Full control over pricing, content & promotions
Direct access to sales and advertising data
Immediate ability to launch or delist products
Direct B2C relationship

Limitations

Significant operational workload (3–5 FTEs)
VAT, EPR, and compliance per market
Account suspension risk from strict KPIs
Potential channel conflict with retailers

Vendor (1P)

Advantages

Reduced operational workload
High customer trust (“Sold by Amazon”)
Returns and logistics handled by Amazon
Predictable B2B wholesale process

Limitations

No pricing control — margin pressure
CRaP risk: unprofitable items get delisted
Unpredictable ordering patterns
Slow processes & bureaucratic workflows

Broker

Advantages

Minimal internal resources needed (0.5–1.5 FTEs)
Broker handles VAT, EPR, compliance
Cross-border access without local registrations
Flexible cooperation models (hands-off or brand-led)

Limitations

Dependency on broker’s performance
Some data may not be fully accessible
Service fees reduce overall margin
Coordination needed for content decisions

By the Numbers

THE BROKER ADVANTAGE.

The Broker model delivers Amazon reach with a fraction of the internal resources. Brands typically need just 0.5–1.5 FTEs for strategy and coordination — the broker handles the rest.

Get the Full Report

0.5

to 1.5 FTEs

vs. 3–5 for Seller, 1–2.5 for Vendor

12+

Marketplaces

EU, UK, US, CA, MX

Fast

Go-Live

Launch quickly across markets

The Third Way

HOW THE BROKER MODEL WORKS.

The Broker model introduces a third pathway for selling on Amazon, positioned between the Seller and Vendor models. Instead of selling directly to customers or wholesale to Amazon, brands sell to an intermediary who becomes the legal seller.

Your Brand

Products B2B

Broker

Sells B2C

Amazon

FBA & Marketplace

Customer

End buyer

Who Should Use a Broker?

Brands seeking Prime scale without building Seller/Vendor infrastructure
International brands entering EU/UK/US/CA without local tax registrations
Manufacturers with strict pricing policies wanting to protect brand positioning
Lean teams wanting to run Amazon across 12+ markets without hiring 3–5 FTEs
Seasonal or niche product companies needing flexible scaling
OEMs and B2B manufacturers entering D2C for the first time

The Broker Handles

Amazon account operations
Listing & catalog management
Logistics & fulfillment (FBA)
VAT, sales tax & invoicing
Product compliance (EPR, EC Rep)
Customer service & returns
Advertising & promotions
Reporting & analytics

Decision Guide

WHICH MODEL IS RIGHT FOR YOU?

Choose Seller if...

You have a strong internal e-commerce team
You want full control over pricing and content
You can manage VAT and compliance per market
You have the capacity for 3–5 dedicated Amazon FTEs

Choose Vendor if...

You prefer predictable B2B wholesale processes
You have high-volume SKUs Amazon wants to carry
You’re comfortable with Amazon controlling prices
You don’t want to manage logistics or customer service

Choose Broker if...

You want Amazon reach without building infrastructure
You need cross-border access to 12+ marketplaces
You lack internal resources for Amazon operations
You want to maintain strategic brand control

Get the complete decision framework with radar charts and detailed comparison tables in the free whitepaper.

Common Questions

FREQUENTLY ASKED.

Nina Starz

Nina Starz

Head of New Business

Free E-Book

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