Meet 2P. The Ecomm Model Ending the Vendor vs. Seller Tug-of-War
Author
TLDR;
1P is rigid. 3P is chaotic. 2P is the strategic middle path. This blog breaks down how second-party partnerships let brands scale on Amazon without losing control over pricing, content, or brand identity. If Amazon feels like a drain, 2P might be the model your team’s been missing.
20 Minute Read
Your Amazon product page isn’t just a digital shelf.
For many successful brands, Amazon represents a frustrating paradox. Your products are thriving in retail stores. Your direct-to-consumer channel shows impressive growth. Customers consistently rave about your offerings, and perhaps you've even attracted investor interest.
But when it comes to Amazon... That's where things often get complicated.
Sounds familiar? Many brands describe their Amazon experience as hitting a wall. Despite success across other channels, they find themselves trapped between imperfect options that force uncomfortable compromises. It's like running 90% of a marathon only to face an unexpected obstacle before the finish line.
Amazon Co-Pilot POV
This is your sign to break free from Amazon's restrictive 1P (First-Party) and 3P (Third-Party) models and embrace 2P (Second-Party) model– a strategic partnership approach that gives you both operational support and brand control while eliminating the compromises that have been holding your growth back on Amazon.
Let's dive into how the 2P model works, why leading brands are making the switch, and how to determine if this innovative approach could be the missing piece in your ecommerce strategy.
Amazon offers several paths to market, each with distinct advantages for different types of brands:
1P: Streamlined Operations
The 1P model works well for brands seeking operational simplicity and broad distribution. Amazon handles the selling process while you focus on manufacturing and brand development. This model particularly benefits:
Brands with established wholesale operations
Companies with high-volume, lower-complexity products
Teams prioritizing wide distribution over direct marketplace management
3P: Maximum Control
The 3P model gives brands direct access to Amazon's massive customer base while maintaining control over pricing, content, and customer experience. This approach works best for:
Digitally-native brands with in-house ecommerce expertise
Companies with robust operational infrastructure
Teams that prioritize data ownership and direct customer relationships
The 2P Opportunity: Bridging the Gap
The 2P (Second-Party) model offers a strategic alternative that combines key advantages from both traditional approaches. Rather than choosing between operational simplicity or marketplace control, 2P creates a partnership with specialized Amazon accelerators who purchase your inventory and manage the entire marketplace ecosystem.
This innovative approach delivers unique benefits that are difficult to achieve with traditional models:
Operational excellence without internal complexity - Your 2P partner brings specialized Amazon expertise without requiring you to build and maintain that capability in-house
Strategic control without day-to-day management - You maintain approval authority over brand presentation and pricing while your partner handles execution
Channel alignment without constant vigilance - Your 2P partner enforces your pricing and positioning across the marketplace, preventing channel conflict
Marketplace growth without resource diversion - Your team stays focused on product innovation and broader strategy while still capturing Amazon's growth potential
The 2P model offers an innovative, balanced solution for brands caught in this dilemma. Rather than choosing between control loss or operational burden, 2P creates a strategic partnership with specialized Amazon accelerators like Neato.
In a 2P relationship, your partner purchases inventory directly from you and expertly manages the entire Amazon ecosystem on your behalf.
Think of it as having an Amazon co-pilot: a specialist who navigates marketplace complexities while you maintain strategic oversight and focus on what you do best—building your brand and creating innovative products. Unlike traditional outsourcing or agency relationships, 2P partnerships truly align incentives.
Your partner only succeeds when your brand thrives.
Meet 2P: A New Model for Strategic Partnership
Brands adopting the 2P model consistently experience transformative outcomes:
Protected Margins and Price Stability
Under 2P, you eliminate the hidden, unpredictable costs associated with Vendor Central and shield your products from unauthorized resellers that erode your pricing strategy and brand perception.
Operational Freedom
All marketplace operations (from inventory forecasting and listing optimization to advertising campaigns, customer service, and compliance management) are seamlessly handled by your 2P partner, freeing your internal resources.
Brand Integrity Preservation
Your brand story, positioning, and premium identity remain consistently communicated across all Amazon listings, ensuring customers experience your brand exactly as intended.
Predictable Revenue Streams
Wholesale purchasing arrangements with your 2P partner deliver financial stability and predictable revenue flows, simplifying budgeting and long-term planning.
A fast-growing natural supplements company recently transitioned to a 2P model and achieved remarkable results: substantial Amazon sales growth, dramatically improved operational efficiency, and the ability to refocus internal resources on new product development rather than marketplace troubleshooting
Is 2P Right for Your Brand?
Evaluating whether 2P aligns with your strategic objectives involves honestly assessing your current Amazon challenges:
Is managing Amazon internally spreading your resources too thin, affecting your core business functions?
Has your Amazon growth plateaued despite strong consumer demand and successful retail or DTC channels?
Do you consistently face issues with price erosion, unauthorized resellers, or diluted brand presentation?
Would your team benefit from redirecting time spent on Amazon operations toward innovation, strategic planning, and enhanced customer engagement?
If you answered "yes" to any of these questions, a 2P partnership could be the strategic move your brand needs to break through on Amazon.
How to Get Started with 2P
Transitioning to a 2P model is straightforward:
Evaluate your current Amazon approach: Identify the critical pain points impacting your brand.
Define your strategic Amazon goals: Clarify exactly what you need from an Amazon partner to achieve your desired outcomes.
Vet potential 2P partners: Choose a partner with proven results, operational expertise, and aligned incentives.
At Neato, we work exclusively with brands seeking strategic alignment, operational excellence, and authentic brand storytelling. This partnership allows brands to thrive without sacrificing control or experiencing marketplace headaches.
The Strategic Advantage of 2P
Selecting the right Amazon partnership model isn't merely an operational decision; it's a fundamental strategic choice that can reshape your brand's future.
With a 2P partnership, your brand can reclaim its vision, reallocate internal resources to high-impact initiatives, and achieve sustainable, scalable growth across all channels, including Amazon.
If your Amazon experience feels like an endless cycle of compromise and frustration, it's time to explore the 2P model, the strategic partnership truly aligned with your brand's long-term success.
