Selling on Amazon is no longer optional for health and wellness brands, it’s essential. With 56% of consumers starting their product searches on Amazon, your visibility and execution on the platform can make or break your success.
But here’s the truth: how you sell on Amazon matters just as much as what you sell. One of the first major decisions your brand will face? Choosing between Amazon’s 1P (first-party) and 3P (third-party) models.
At McKesson Consumer Markets, we help brands navigate that choice every day. And we’ve seen firsthand how the right 3P strategy, with the right partner, leads to more control, stronger margins, and smarter long-term growth.
Understanding the Difference: 1P vs. 3P
1P (first-party): Amazon buys your products wholesale and sells them to customers. You operate through Vendor Central, but Amazon controls pricing, inventory, listings, and the customer experience.
3P (third-party): You sell directly to consumers on Amazon Marketplace via Seller Central. You run your storefront, set your own pricing, manage your listings, and have full control over your brand’s presence.
1P Might Look Simple, But It Comes at a Cost
Why some brands consider 1P:
- Automatic Prime eligibility
- Amazon manages logistics, returns, and customer service
- Access to vendor analytics and forecasting tools
- The Amazon name lends initial trust
But the tradeoffs are steep:
- Zero pricing control – Amazon can undercut your MAP at any time
- Lower margins with wholesale pricing
- Limited visibility into sales data and customer behavior
- Inconsistent inventory availability
- Little control over how your brand appears
And let’s not forget the fees.
Going 1P often means signing up for a long list of costs that chip away at your margins, including:
- Marketing Development Funds (MDF): Pay-to-play just to stay visible
- Freight & Return Allowances (FA/DA): You cover shipping and damage costs
- Guaranteed Minimum Margins (GM): Amazon dictates your profitability
- Chargebacks & Shortage Claims: Fees for packaging issues or shipping discrepancies
- Annual Vendor Negotiations (AVN): Recurring renegotiations that rarely favor the brand
And that’s just the beginning. Bulk discounts, event fees, packaging initiatives, and compliance costs all add up.
Why 3P with a Partner Is a Smarter Move
The 3P model puts brands in the driver’s seat:
- You control pricing, content, promotions, and brand experience
- You own your data, with full visibility into performance
- You can react fast, optimizing listings or strategy in real time
- You strengthen your brand equity and customer relationships
Yes, 3P comes with responsibility. You’re in charge of fulfillment, service, compliance, and strategy. But when you work with an experienced partner, 3P becomes a powerful lever—not a burden.
That’s Where McKesson Consumer Markets Comes In
We work with health and wellness brands every day to make the 3P model not only manageable, but profitable.
Our approach:
- We act as your authorized Amazon seller, so you retain brand control while offloading the operational burden
- We manage everything: advertising, content, listings, compliance, fulfillment coordination, and more
- We follow your MAP, protect your brand, and don’t take shortcuts that damage your reputation
- We provide access to high-growth marketplaces and a full-service digital marketing team to support cross-channel growth
With us, you’re not just getting a reseller; you’re gaining a strategic partner who knows how to win on Amazon.
Ready to Rethink Your Amazon Strategy?
You don’t need an invite to sell 3P. You just need the right partner to help you do it well. If you’re looking to take back control of your brand, improve your margins, and grow sustainably, let’s talk.