Is this the “Year of the Hybrid Strategy” on Amazon?
Early in January, we pulled together a panel of marketplace experts to mull over all things Amazon in 2024 – and hybrid was one of the hottest topics on the webinar table…
3P or not to 3P (that is the question)
The “Vendor vs Seller vs Hybrid” debate is nothing new, but there’s no doubt that the evolution of the Amazon landscape means it’s at the forefront of many brands’ minds in 2024 – even when those brands have had their strategies fixed on one model for years.
In the webinar, we looked at both sides, with Venture Forge’s own Becca Woollin batting for the Seller model and Vendor Rocket’s Ant Finch championing Vendor.
And we expected a bit of a battle!
But actually, they agreed on the most important point – which is that there’s no blanket “right answer” to apply to all brands.
Weighing the Pros and Cons
After a year where Net PPM (Pure Profit Margin) reigned supreme for our clients, Becca thinks hybrid is the future of the marketplace, “especially for brands with a history of B2B with Amazon”.
And, having experienced and managed both sides himself, Ant urges brands to fully understand all their routes to market from a profitability perspective.
It all comes down to strategy
Doesn’t it always!
The panel’s conclusion was that, whether you choose one model or a hybrid of both depends wholly on your brand’s overall strategy.
Sellers looking to improve profits might find a partial or full Vendor relationship unlocks the door to better margins.
Vendors could find that a partial or full transition to Seller Central relieves operational or financial constraints, offers better control and/or presents cost savings that boost profitability.
And those operating a hybrid model already might need to revisit whether certain of their brands, products or scenarios would be better switching models following changes to their fees or relationship.
Read all about it…
For those who missed the webinar, two bits of good news!
- We’ve pulled a blog summary together (15 min read), which includes an entire section on the Hybrid conversation – read here
- And/or you can watch the whole thing on catch-up (60 min view) – click here
And if you’d like some expert help from any of our panel, just drop us a line!