Maximizing Commercial Success: A Guide to Hybrid, 1P Retail and 3P Marketplace Product Launches on Amazon

In an ever-changing retail landscape, launching a product on Amazon requires a strategic and flexible approach. Brands are increasingly looking to combine the advantages of 1P (retail) and 3P (marketplace) sales models to maximize their presence and sales.

In this article, we'll explore in depth how to successfully plan and execute a hybrid product launch, offering a detailed roadmap and practical advice for each stage of the process.

What is a Hybrid strategy?

A hybrid strategy, in a marketplace context such as Amazon, refers to a sales strategy using both the 1P sales model (retail) and the 3P sales model (marketplace). Unlike a traditional approach where a brand would choose to sell exclusively as a 1P or 3P seller.

Advantages of selling hybrid :

Criteria	Product launch	Reviews	Awards	Promotion	Stock and Catalog
Accrued control	Speed to market + stock	Direct feedback for improvement	Independent pricing	Customized promotion management	Inventory control and listings
Diversification	Multi-channel (1P and 3P)	More customer reviews	Price flexibility between channels	Multiple promotional strategies	Wide range of products
Operational flexibility	Adaptability to market conditions	Rapid response to customer feedback	Real-time price adjustment	Adjusting campaigns	Flexible inventory management
Optimization Profitability	Wholesale and retail sales	Reviews that boost sales	Optimized margins (choice of 1P or 3P)	Targeted promotions to maximize ROI	Optimizing stock levels

Potential disadvantages :

1. Management complexity: Managing both 1P and 3P sales models can be complex and demanding in terms of inventory management, logistics and customer service. Brands must be prepared to devote time and resources to managing this complexity effectively.

2. Additional costs: Selling as a hybrid can entail additional costs, including storage fees, account management fees and commission fees for selling as a 3P seller. Brands need to take these costs into account when planning their sales strategy.

Hybrid product launch process using both models

List the product on Seller Central as soon as you have it in stock

Creating product listings :

1. Immediacy: As soon as stock is received, create product listings on Seller Central immediately, so you don't waste any time. This rapidity enables you to capture the first potential buyers and quickly initiate sales.
2. Content optimization: Like any good listing, use clear, concise and optimized headlines with relevant keywords. Make sure headlines are both informative and attractive to grab customers' attention. Write detailed product descriptions, including key features and benefits.

Use strategic keywords in descriptions to improve SEO and increase product visibility.

Switch to FBA and send stock to Amazon FR 

Stock preparation and dispatch :

1. Stock Preparation: Carefully pack stock according to Amazon's FBA shipping guidelines. Label each product correctly and ensure that all items meet Amazon's quality and safety standards.
2. Send to Distribution Center: Send stock to an Amazon distribution center located in France (Amazon FR). Using FBA allows you to benefit from Amazon's logistics services, including storage, packaging and fast shipping of orders, which improves the customer experience and increases satisfaction.

Launch Vine (30 products + 10 for sale)

Amazon Vine program:

1. Program Registration: Register your product with the Amazon Vine program from the central seller to obtain authentic, quality reviews from program members, known as "Vine Voices".
2. Product Reservation: Allocate 30 units of your product to the Vine program, allowing Vine Voices to test and give feedback. Make sure you also have 10 units available for direct sales to customers to maintain a steady flow of sales.

Lister on Vendor

Creating a listing on Vendor Central :

1. Listing on Vendor Central: In addition to Seller Central, create product listings on Vendor Central to reach a wider audience. This allows you to benefit from the advantages of wholesaling to Amazon, which then sells directly to customers.

INFO + PPM 40% :

Attempt to get Amazon to achieve the 40% margin so that they can cover costs and generate a profit.

Net PPM formula:
Net PPM = Shipped Revenue - Shipped COGS + Vendor Terms - Sales Discount.

-> For soft good, make sure net PPM is at least 35%.
-> For hard good, make surenet PPM is at least 40%.

1. Consistent listings: Maintain consistency between listings on Seller Central and Vendor Central by using the same titles, descriptions and keywords to ensure consistent branding and better inventory management.
2. Launch advertising campaigns: Use analysis tools to optimize campaigns in real time.

Results analysis :

1. Track sales, conversions and key performance indicators.
2. Analyze customer feedback to identify strengths and areas for improvement.

To Do :

1. Track sales and conversions.
2. Analyze customer feedback to identify areas for improvement.

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Conclusion

Launching a product as a hybrid on Amazon, combining the 1P (retail) and 3P (marketplace) sales models, offers a strategic opportunity to maximize your brand's presence and sales. This approach leverages the unique advantages of each model, offering greater control, sales channel diversification, operational flexibility and optimized profitability.

However, it also involves complex management and additional costs, requiring careful planning and rigorous execution.

By following a structured launch process, from creating product listings and sending stock to Amazon, to using the Amazon Vine program and launching advertising campaigns, you can effectively position your product in the marketplace. Logistics management and continuous performance evaluation are also essential to meet market demands and adjust your strategy in real time.

In short, taking a hybrid approach to launching products on Amazon not only maximizes sales opportunities, but also enables you to adapt to the rapidly changing online retail landscape. Well-planned execution and careful monitoring will guarantee your product's success and sustained growth on the Amazon platform.

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