Amazon’s 1P vs 3P Dilemma 

Search Media Feed:

Search Interviews:

Amazon’s 1P vs 3P Dilemma 

Garrett Bluhm

Garrett Bluhm is the Co-founder and CEO of Drafted Commerce, an online retail brand advertising and media agency supporting full-service Amazon agencies, Amazon Advertising, Amazon DSP, and various major retailers. He founded Drafted Commerce as a way to provide a data-driven approach to helping private equity companies identify opportunities, validate acquisitions, and help brands build internal capabilities. 

With extensive digital and leadership experience, Garrett has consulted and facilitated execution on over 85 brands in the eCommerce and retail space and advised eight commerce tech and SaaS companies. He has helped dozens of Fortune 100 companies structure and establish their in-house digital capabilities.

Here’s a glimpse of what you’ll learn:

  • Garrett Bluhm and Aaron Conant talk about fulfillment challenges on Amazon
  • How brands should consider declining POs and inventory shortages
  • Is Amazon transferring brands from 1P to 3P?
  • Strategies for evaluating 1P versus 3P fulfillment
  • Optimizing paid media on Amazon for 1P and 3P
  • How to maintain brand protection on Amazon

In this episode…

Q4 has brought about a decline in purchase orders (POs) and inventory shortages on Amazon. With these pressing issues, brands need to evaluate 1P and 3P fulfillment methods to anticipate Amazon regulations and avoid shutdowns next year. So, how can you determine the best fulfillment method for your brand?

Although Amazon has not yet initiated a mandatory full transition from 1P to 3P, Garrett Bluhm urges brands to weigh their options. Your first evaluation strategy should be to develop a profit and loss (P&L) strategy for each fulfillment method. This requires performing a complete assessment of available inventory, shipping costs, and product pricing. Then you can analyze FBA (Fulfillment by Amazon) or FBM (Fulfillment by Merchant) costs. If transitioning from 1P to 3P, Garrett warns that Amazon can track your account addresses and subsequently remove your account, so it’s crucial to utilize separate business addresses for Amazon and your chosen merchant. 

In this episode of The Digital Deep Dive, Aaron Conant welcomes Garrett Bluhm, Co-founder and CEO of Drafted Commerce, to talk about 1P and 3P fulfillment on Amazon. Garrett shares how brands should consider declining POs and inventory shortages, strategies for evaluating 1P versus 3P fulfillment, and how to maintain brand protection on Amazon.

Resources mentioned in this episode:

Sponsor for this episode...

BWG Connect provides executive strategy and networking sessions that help brands from any industry with their overall business planning and execution. We network and knowledge share together to better understand and adapt to the newest trends, strategies, and pain points shaping growth in the digital space. BWG Connect, in conjunction with BWG Strategy, has built an exclusive network of 125,000+ senior professionals and hosts over 2,000 virtual and in-person networking events on an annual basis.

In addition, we have had 1x1 conversations with over 5,000 brands and have a real-time pulse on what digital strategies are successful and why. This in-depth knowledge allows our team to operate on the cutting-edge and provide our clients with best-in-class guidance on how to win in the digital world. We have provided free consultations and strategy sessions for companies of all sizes, from start-ups to Fortune-100, to enable growth, resolve issues and make curated service provider introductions that can impact your digital footprint.

We have held to the philosophy of providing high-level insights and actionable knowledge with no sales pitches in order to provide to our network the ability to listen, learn and act to improve themselves as well as their organizations. Our ultimate goal is to be the resource out there to help digital executives find the research they need to excel in the modern marketplace.

If you are interested in getting involved with any of our current or past events, you can find them here. If you are looking for help & would like to set up some time to chat with our team, you can schedule a time or reach out directly to aaron@bwgconnect.com or Tiffany@bwgconnect.com.

BRINGING TOGETHER INFLUENTIAL EXECUTIVES AND SENIOR PROFESSIONALS

What is BWG Connect?

BWG Connect provides executive strategy & networking sessions that help brands from any industry with their overall business planning and execution. BWG has built an exclusive network of 125,000+ senior professionals and hosts over 2,000 virtual and in-person networking events on an annual basis.
envelopephone-handsetcrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram