What is Amazon 1P and Why is it Important?

For brands and manufacturers seeking to expand their reach on the Amazon marketplace, understanding the intricacies of Amazon’s seller programs is necessary. One prominent option is Amazon 1P, also known as Amazon Vendor Central. 

This program allows manufacturers, distributors, and brand owners to sell on Amazon their products directly to Amazon at wholesale prices. 

Amazon then takes on the responsibility of listing, warehousing, fulfilling, and marketing those products directly to Amazon at wholesale prices. 

Amazon then takes on the responsibility of listing, warehousing, fulfilling, and marketing those products to its vast customer base. 

amazon 1p

What is Amazon 1P?

The 1P Amazon program, or Vendor Central, is a wholesale selling model on the Amazon marketplace. 

Unlike Amazon 3P sellers (third-party sellers) who manage their listings, fulfillment, and customer service independently, 1P sellers function as wholesalers, supplying their products to Amazon in bulk. 

Amazon then takes on the responsibility of listing the products, storing them in its fulfillment centers, managing order fulfillment, and providing customer service. 

While there’s no official definition from Amazon, it’s widely understood to mean “First-Party.” This refers to the direct relationship between the brand and Amazon, where the brand acts as the first party supplying the products, and Amazon acts as the second party selling those products to consumers. 

What is Vendor Central?

Vendor Central is the exclusive online platform for Amazon 1P sellers. Through Vendor Central, sellers manage their relationship with Amazon, including submitting product information, negotiating pricing, monitoring sales performance, and generating reports. 

Essentially, Vendor Central serves as the central hub for communication and collaboration between brands and Amazon for 1P transactions. 

Amazon vendor account, Amazon vendor vs Amazon seller, vendor management in Amazon, and Amazon vendor advantage are all terms related to the Amazon 1P program and how brands can leverage it to reach a wider audience. 

Benefits of Amazon 1P Marketplace

The benefits of 1P marketplace for the Amazon vendor advantage are as follows: 

Prime Positioning and Customer Trust

Amazon 1P Marketplace products are typically eligible for Prime benefits, including faster shipping and free returns. 

This can significantly enhance product visibility and customer trust, potentially leading to higher conversion rates. 


Amazon prioritizes 1P listings in search results, boosting the discoverability of your products to a massive audience of potential customers actively browsing the Amazon 1P marketplace. 

Pricing Control 

While Amazon negotiates wholesale pricing, 1P sellers retain more control over pricing compared to 3P sellers who are subject to various marketplace fees, including fulfillment fees, referral fees, and closing fees. 

This can give 1P sellers more flexibility in setting their profit margins. However, it’s important to carefully consider the volume discounts that Amazon may negotiate, as they can significantly impact your overall profitability. 

It’s also important to factor in the potential for increased sales due to the benefits mentioned previously, such as Prime eligibility and improved discoverability. 


Amazon handles all storage, packaging, and shipping logistics for 1P products, freeing up seller resources and potentially reducing fulfillment costs. 

Customer Service and Returns 

Amazon manages customer service inquiries and returns for 1P products, reducing the operational burden on sellers. 

Cons of Amazon 1P Marketplace


Amazon negotiates wholesale pricing, which may be lower than the price a seller could achieve through a 3P model. 

Consider carefully the profit margins. 


Sellers have less control over product listing presentation and branding elements compared to the 3P model. 

Amazon may prioritize its own branding initiatives over those of the seller. 

Customer Interaction

As an Amazon 1P seller, most customer inquiries and interactions are handled directly by Amazon’s customer service team. 

This can make it challenging to: 

Gather valuable customer feedback directly. While Amazon provides some seller reports with customer feedback data, you may not receive the same level of detail or qualitative insights you would through direct communication. 

Build brand loyalty through personalized interactions. Since Amazon manages customer service, there are fewer opportunities to connect with customers directly and build lasting brand loyalty. 

Address customer concerns promptly. While Amazon has a robust customer service system, there may be delays or limitations in addressing specific customer issues compared to handling them directly. 

Explore options within Vendor Central Amazon to request customer feedback reports from Amazon. While not a substitute for direct interaction, these reports can offer valuable insights into customer sentiment. 

Dependancy on Amazon Policies 

As an Amazon 1P seller, you have less control over how your products are marketed and sold compared to the 3P model. 

Amazon’s algorithms and promotional strategies heavily influence product visibility and sales. 

Amazon’s policies and procedures can change frequently. 1P sellers must be adaptable and willing to adjust their business practices to comply with evolving Amazon guidelines. 

In some cases, Amazon may restrict the sale of certain products or categories, even if they were previously approved. 

This can disrupt your sales strategy and require adjustments. 

Monitor updates to Amazon’s Seller Central and Amazon vendor Central policies. Proactive awareness can help you adapt your approach to stay compliant and minimize disruptions. 

Develop a positive working relationship with your Amazon vendor management contact. Open communication can help you understand upcoming policy changes and navigate challenges more effectively. 

Competition with Amazon 

Private Label Products: Amazon Basics and Amazon private-label brands may compete directly with your products in certain categories. 

This can make it difficult to compete on price and organic search visibility. 

Price Matching and Algorithm Control: Amazon can adjust product pricing and prioritize its own brands within the search algorithm. This can make it difficult to compete on price and organic search visibility. 

How to Become an Amazon 1P Seller 

Unlike the 3P model where sellers can register for an account, becoming an Amazon 1P seller typically involves an invitation from Amazon. 

There’s no official application process. 

While there’s no guaranteed path to receiving an invitation, establishing a successful track record as a 3P seller can make your brand more attractive to Amazon. This includes: 

  • Maintaining a positive seller rating with a high percentage of positive customer reviews. 
  • Offering competitive pricing and high-quality products. 
  • Demonstrating a consistent sales history and strong brand presence on the platform. 

Consider attending industry events or conferences where you can connect with Amazon representatives. While these connections may not directly lead to an invitation, they can help build brand awareness and potentially open doors for future collaboration.