What is a Third Party Seller on Amazon?

A third party seller on Amazon is a retailer or business that sells products directly on the Amazon platform but is not owned or operated by Amazon itself. These sellers can be individuals, small businesses, or large corporations, and they use Amazon’s marketplace to reach a broader audience. Unlike Amazon’s first-party sales, where Amazon buys products directly from manufacturers and sells them to consumers, third party sellers list their own inventory on Amazon’s site and manage the sales process. The third party selling model allows for a vast array of products and can lead to competitive pricing and a wider selection for consumers. One of the key features of Amazon’s marketplace is the ability for customers to buy from these third-party sellers, often at competitive prices. When you see “Sold by [Seller Name] and Fulfilled by Amazon” on a product page, it indicates that the product is being sold by a third party seller who has opted to use Amazon’s fulfillment services. This means that Amazon handles storage, packaging, and shipping, but the seller manages their own inventory and sets their own prices. Third party sellers can choose between two main fulfillment options: Fulfilled by Amazon (FBA) or Fulfilled by Merchant (FBM). With FBA, sellers send their products to Amazon’s warehouses, and Amazon takes care of the rest. This can give sellers access to Prime customers and enhance their product visibility. On the other hand, FBM allows sellers to maintain control over their inventory and shipping processes. Both models have their advantages and challenges, depending on the seller's business strategy and resources. To become a third party seller on Amazon, individuals or businesses need to create a seller account, provide necessary information, and list their products. Amazon charges fees for selling on its platform, which can include referral fees, closing fees, and FBA fees if applicable. Sellers must also adhere to Amazon’s policies and guidelines, ensuring that they provide quality products and customer service. As competition grows, third party sellers must find ways to differentiate themselves. This could involve optimizing product listings with effective keywords, investing in advertising, and providing excellent customer service to garner positive reviews and ratings. Understanding customer preferences and trends can also help sellers to adjust their offerings accordingly. Overall, third party sellers play a significant role in Amazon’s ecosystem, contributing to the diversity of products available on the platform. With the right strategies and dedication, many sellers have found success and built profitable businesses through Amazon’s marketplace.