Blog

Issue 117: Key Q4 Dates for eCom Sellers

By Rachel Go

Hello, MyFBAPrep Sellers!

Today we’re sharing some key dates for merchants to stay on top of in Q4 and beyond, as well as some primers on 1P and 3P selling on Amazon.

What Is Amazon 1P?

“Amazon 1P” means “Amazon first-party”, which is when Amazon purchases your goods directly, usually at wholesale prices, like any traditional retailer might. 1P selling on Amazon is invite-only, and comes with the benefit of being able to sell in bulk, with less listing and pricing management needed.

When selling 1P, you have to adhere to Amazon’s strict prep requirements, carry out POs, and invest in the platform. Other critical recommendations include:

  • Organize product prep and inbound shipments and manage those costs. A prep service ensures labeling and packaging is perfect so you won’t have to worry about chargebacks.
  • Invest in quality merchandising up front, which gives you more control over how your brand is presented across Amazon.
  • Push brand marketing with Vine and Brand Registry.
  • Work out an advertising budget based on profit margin and spend on ads, as this will increase sales and, therefore, the volume of Amazon POs.
  • Stay on top of fees and track your profit margins since Amazon’s fees are deducted from your wholesale costs.

Selling 1P can greatly reduce your costs because you need less infrastructure and less administration. However, it’s still important to stay on top of what you’re actually paying so you have oversight of the full process.

Learn about 1P selling on Amazon.

Key Q4 Amazon Dates and Important Holidays

Take a look at Key 2024 Amazon Q4 Dates for Sellers to learn when you need to get items into FBA for BFCM, and Important eCommerce Holiday Planning Dates for in 2024-2025 for the big sales days to keep an eye on this and next year.

What Is Amazon 3P?

“Amazon 3P” means “Amazon third-party,” which is when you sell on Amazon as a marketplace seller. In 1P, you’re selling directly to Amazon, but in 3P, you sell to consumers through Amazon as a sales platform. In this scenario, you’re responsible for your listings, pricing, customer acquisition, and (unless you use FBA) fulfillment and returns.

Not every brand works well with 3P. It entails a lot of effort, so you’ll need as much help as you can get:

  • Leverage a 3PL or FBA (or both) to limit early investments in infrastructure.
  • Focus your budget on good inventory management systems, as this will save you money and yield insights into sales.
  • Remember, you’re operating as a brand, which requires branding products, uniform styling, and ensuring uniform quality across items in your store.
  • Don’t start slowly. Amazon sets logistical and FBA replenishment standards based on your early performance on the marketplace, so if you’re launching through FBA, push advertising and increase sales as early as possible.
  • Collect data and optimize product pricing, packaging, and other costs as you go. You won’t have all the information up front, but you can adjust as you move forward.
  • Make sure you have dedicated people to handle customer service, fulfillment, etc. Merchandising and product listing creation are one-time projects you can then touch up on occasion, but many aspects of your eCommerce store will regularly need special attention, so set up these systems to lay the foundation for a successful 3P undertaking.

Learn how and why to sell 3P on Amazon.

Top Industry News

Automated Inventory Management: Benefits, Features & Top Tools (The Ecomm Manager)
Manual inventory management is for spreadsheet weirdos who don’t like making money. To really scale your ops, you need automated inventory systems in place. Your numbers are always right and your systems work seamlessly without constant supervision.

Shopify to Become Roblox’s First Platform Commerce Partner (BetaKit)
With this integration, developers, creators, and brands who are on Shopify can sell physical items to customers using real currency within Roblox games without ever leaving the Roblox platform. For example, a Roblox player can interact with a shirt displayed on an in-game mannequin to summon a Shopify-powered checkout where they can purchase a real-life version of the clothing in addition to a digital replica for their character.

Walmart Bets on Collectible Sneakers to Grow Marketplace Service (Business of Fashion)
The retailer is teaming up with sneaker marketplace StockX to offer a curated selection of pre-verified sneakers in a bid to enhance its online presence and compete with Amazon. Hundreds of items will be available on Walmart’s website next week, and StockX will fulfill and verify the products. The partnership could expand to tens of thousands of products, Michael Mosser, vice president and category lead at Walmart Marketplace, said in an interview.

PayPal Partners with Shopify to Power a Portion of Shopify Payments in the U.S. (Paypal)
With a brand-new experience, PayPal wallet transactions will be integrated into Shopify Payments in the U.S., which will streamline the managing of orders, payouts, reporting, and chargeback flows. This enhancement creates a single, unified experience for PayPal and Shopify merchants offering both innovative payment options and operational efficiency.

Mango Extends eCommerce Operations to 12 New Markets (Retail Dive)
Mango is executing its e-commerce expansion following a jump in its online business. Last year the company’s e-commerce arm brought in more than 1 billion euros for the first time, comprising 33% of Mango’s overall revenue. Alongside its digital expansion, Mango’s brick-and-mortar store openings are continuing at a rapid pace.

Dollar General Goes ‘Back to Basics,’ While Dollar Tree Expands Offerings (Retail Brew)
With low- and middle-income shoppers both pulling back and big box chains such as Walmart and Target increasing their value offerings, discounters Dollar Tree and Dollar General are trying out new business models to stay relevant. For Dollar General, that means simplification: tighter inventories, fewer SKUs. For Dollar Tree, that means more variety: multiple price options for the same item.

Walmart Marketplace Grows 50% in One Year (Marketplace Pulse)
Walmart’s marketplace reached 150,000 active sellers as new sellers joining the platform continue to accelerate, attracted by growing GMV. According to Marketplace Pulse data, Walmart added more than 50,000 active sellers over the past twelve months. That’s significant for a marketplace launched in 2009, with 50,000 active sellers in total as recently as 2022.

Until next time,
Rachel Andrea Go
Marketing Director, MyFBAPrep