What is Amazon Marketplace?

Amazon Marketplace is an e-commerce platform owned and operated by Amazon that enables third-party sellers to sell new or used products on Amazon.com alongside Amazon's own regular offerings. Over 60% of all physical product sales on Amazon are actually fulfilled by third-party independent businesses, not Amazon itself.

Seller Central vs. Vendor Central

There are two primary ways to operate on Amazon: 1. Amazon Seller Central (Third-Party / 3P): You are the retailer. You set the price, manage the listings, and handle the advertising. You pay Amazon a referral fee (usually around 15%) for using their platform. You can fulfill orders yourself (FBM) or pay Amazon to store and ship them (FBA). 2. Amazon Vendor Central (First-Party / 1P): Amazon is the retailer. You act as a wholesale supplier, selling your inventory in bulk directly to Amazon at wholesale prices. Amazon controls the retail price and handles all customer service. This is generally invite-only.

Fulfillment by Amazon (FBA)

A key component of the Marketplace is FBA. Sellers ship their bulk inventory to Amazon's fulfillment centers. When a customer orders the item, Amazon picks, packs, and ships it, and provides customer service. Using FBA is the primary way third-party sellers acquire the coveted "Prime" badge on their listings, which drastically increases conversion rates.

Why Brands Cannot Ignore It

Amazon Marketplace is essentially a massive search engine where consumers begin with immediate purchase intent. Brands that avoid Amazon often find unauthorized resellers or counterfeiters dominating their brand name in search results. Securing your Brand Registry and optimizing your presence on Amazon is a defensive necessity as much as it is an offensive growth channel.