Demographics of Amazon's 3P Sellers (PART 3/3 : fulfilment and business model)

By Elliot Brindel

Date August 11, 2021

In this guide, we'll look at Amazon's 3P seller businesses and the business model and method of fulfilment by which they are run.

What is the most common business model third-party sellers use?

The most popular sales model that third-party sellers use is creating a private label. First, a business identifies a product with high demand but few sellers, then finding a way to get it made cheaply but with some marketable changes, finally branding the product under a private label and selling it on Amazon. Though this is the most used model finding a product like that can be difficult, and others try other strategies. Being a wholesalers/resellers is the second most popular method when selling on Amazon.

FBA (Fulfilled by Amazon) vs FBM (Fulfilled by Merchant)

If you ask almost anyone for Amazon's defining feature, it's their amazing fulfilment model. The FBA (Fulfilled by Amazon) is the envy of the industry and is available to any seller who uses the Amazon platform for a fee. This allows third-party sellers to have a functional eCommerce business on their feet relatively quickly, with storage and shipping included. However, some businesses choose the handle the storage and shipment themselves. This is known as FBM (Fulfilled by Merchant) and is being used by more businesses to avoid paying Amazon fees. In 2020, due to COVID-19 limiting Amazon's shipping strategy, more sellers, for the first time, used FBM (43% vs. 34% in 2019) than ever before.

Terms & Conditions

SellerDirectories.com Terms and Conditions

By purchasing a directory on SellerDirectories.com, you agree to get into the following data licensing agreement.

Please read these terms carefully before ordering with us.

These terms tell you what you need to know about buying with us.

The Data Licensing Agreement (“Agreement”) is made and entered the day of your purchase between your company (“Licensee”); and ECOMA Limited (“Licensor”), each referred to as a “Party”, and together referred to as the “Parties”.

WHEREAS, Licensor has certain rights in the Data (as defined herein); and WHEREAS, Licensee wishes purchase access to the Data and Licensor wished to grant such rights to Licensee; and WHEREAS, the Parties wish to set forth the terms and conditions tha shall apply with respect to such Data.

NOW, THEREFORE, in consideration of the mutual covenants and undertakings herein contained, the Parties hereby agree as follows:

1. Definitions

1.1. The following terms shall have the meaning ascribed to them hereinafter:

1.1.1. “Data” shall mean a list of Amazon or DTC brand reseller’s, with the list of parameters listed on the product page and/or sample as they relate to each reseller. For the avoidance of doubt, Licensee acknowledges that the Data for each reseller may not include all of the mentioned parameters in the product page or sample.

1.1.2. “Intellectual Property” means all patents, copyrights, whether or not registered; trade names, registered and unregistered trademarks, service marks, trade dress, domain name registrations and other source indicators; computer software, including databases; trade secrets, commercial secrets, inventions (whether or not patentable and whether or not reduced to practice), know-how, methodologies, and other proprietary rights.

2. Grant Of License. Subject to the terms and conditions set forth herein, Licensor hereby grants Licensee a sublicensable, worldwide, royalty-free, perpetual license to access and use the Data, including analyzing and applying artificial intelligence and machine learning algorithms on to such Data, in all its forms, and to further utilize the Data, solely in connection with Licensee internal business purposes (“License”). Any results of the use of the Data by Licensee shall be referred to as the “Results”.

3. Restrictions.

3.1. No Resale. The Licensee is purchasing the License for its internal business purposes, , and not with a view to or for the resale, distribution, subdivision or fractionalization thereof, and the Licensor has no present intent to enter into any contract, undertaking, agreement or arrangement for any such purpose.

3.2. No Public Display. The Licensee shall use the right granted herein with a view to publicly showcase the Data on their website, dashboard or SaaS, with the exception made of the public storefront and seller page public info (i) Storefront Name; (ii) Store URL; (iv) reseller ID; (iii); Store number of feedbacks, and the Licensor has no present intent to enter into any contract, undertaking, agreement or arrangement for any such purpose.

4. SellerDirectories.com team do their best to insure that the data is as accurate and complete as described in their product page. To ensure the above point, SellerDirectories.com will overdeliver the total number of leads to cover up for potential bounce and mistarget. You acknowledge that SellerDirectories.com has no obligation to monitor any information on the Services and that we are not responsible for the accuracy, completeness, appropriateness, safety or legality of Your Data or any other information or content you may be able to access using the Services.

5. Refunds are not available on any purchase made on sellerdirectories.com.

6. You are solely responsible for your conduct, the content of Your Data and your communications with others while using the Services. For example, it's your responsibility to ensure that you have all rights and permissions needed to comply with these Terms and to avoid infringement or violation of any rights of others. Should you have any questions about the terms and conditions listed above, please reach out to us info@sellerdirectories.com

ECOMA Limited

ROOM 409, BEVERLEY COMMERCIAL CENTER

87-105 CHATHAM ROAD SOUTH TSIM SHA TSUI,

KOWLOON HONG KONG