1P to 3P Transition Strategy: 6 Successful Steps in 2025

Why Are More Brands Moving from 1P to 3P on Amazon?

The Amazon first-party (1P) vendor model once appeared to be the gold standard for brands seeking to scale. But thanks to pricing control, unpredictable purchase orders, and shrinking margins, many brands have opted to strategically shift toward third-party (3P) Seller Central.

If you’re an Amazon brand owner or retailer considering this transition, you’re not alone. In 2025, more brands than ever are taking control of their pricing, inventory, and customer relationships by moving from 1P to 3P. This shift isn’t just about independence—it’s about long-term profitability and sustainability.

But how do you make this move without disrupting sales? In this guide, we’ll walk you through six successful steps to transition smoothly while maximizing revenue and brand control.

Understanding Amazon 1P vs. 3P: Key Differences

Before jumping into the transition strategy, let’s clarify the main differences between 1P and 3P selling on Amazon.

For many brands, the 3P model offers greater profitability and control, making it the preferred choice in 2025. However, shifting from 1P to 3P requires careful planning to avoid stockouts, revenue dips, and compliance issues.

Step 1: Assess Your Brand’s Readiness for 3P Selling

A successful transition starts with a thorough assessment of your brand’s operational readiness. Consider these key areas:

• Inventory Management: Do you have a reliable supply chain to handle fulfillment?
• Pricing Strategy: Are you prepared to take control of your pricing and promotional plans?
• Amazon Account Setup: Do you have an existing 3P Seller Central account, or will you need to create one?
• Compliance and Tax Considerations: Are you registered for sales tax in applicable states?

Step 2: Set Up Your 3P Seller Central Account

If you don’t already have a 3P Seller Central account, setting it up should be your next step. Follow these key actions:

1. Register for a Professional Seller Account to access advanced tools.
2. Enroll in Brand Registry to protect your intellectual property.
3. Choose your fulfillment method—FBA for automated logistics or FBM for more control.
4. Set up business bank accounts and tax information to avoid delays.

Step 3: Migrate Product Listings from Vendor Central to Seller Central

To maintain ranking and avoid losing visibility, carefully migrate your listings. Here’s how:

• Download your 1P product catalog from Vendor Central.
• Create identical listings in Seller Central, maintaining SEO-rich titles, bullet points, and backend keywords.
• Use the same ASINs to preserve ranking history.
• Set competitive pricing to maintain sales velocity.

Step 4: Establish a Strong Fulfillment Strategy

One of the biggest challenges when moving to 3P is fulfillment. Choose the best option based on your business needs:

• Fulfilled by Amazon (FBA): Ideal for fast-moving products and Prime eligibility.
• Fulfilled by Merchant (FBM): Gives more control over logistics and profit margins.
• Hybrid Approach: Use FBA for high-demand products and FBM for niche or bulky items.

Step 5: Develop a Pricing and Advertising Strategy

Amazon’s algorithm favors competitive pricing and strong ad campaigns. Unlike Vendor Central, where Amazon sets prices, you’ll now control your pricing strategy.

Step 6: Monitor Performance and Optimize

The first few months of your 3P transition are critical. Track your performance closely and make adjustments as needed.

Use Amazon’s Business Reports and third-party analytics tools to fine-tune your strategy.

Final Thoughts

Shifting from 1P to 3P on Amazon in 2025 is a strategic move that offers greater control and higher profitability. However, success depends on careful planning, inventory management, and a strong advertising approach.

By following these six steps, you can ensure a smooth transition without losing momentum. If you need expert guidance, AMZDudes specializes in helping brands scale successfully leveraging their professional Amazon services including advertising management, listing optimization, and account management. Contact us today!