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Amazon’s 1P vs 3P Dilemma

Amazon’s 1P vs 3P Dilemma

FromThe Digital Deep Dive With Aaron Conant


Amazon’s 1P vs 3P Dilemma

FromThe Digital Deep Dive With Aaron Conant

ratings:
Length:
50 minutes
Released:
Dec 15, 2022
Format:
Podcast episode

Description

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. 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.
Released:
Dec 15, 2022
Format:
Podcast episode

Titles in the series (96)

This is the Digital Deep Dive Podcast, where we tackle the newest trends, strategies and pain points shaping growth across the digital landscape.