1P – First-Party Sellers

Who are 1P (First-Party) sellers and how do they operate on e-commerce platforms?

Refers to manufacturers, brands, or primary vendors who sell their products directly to the retail platform or marketplace, which then sells these products to end consumers. In this model, the retail platform or marketplace acts as the main seller. For sneaker brands, being a first-party seller means that they sell their inventory directly to online retail giants like Amazon. Once sold, the platform takes ownership of the inventory and is responsible for setting the price, managing listings, and handling customer interactions. The products from first-party sellers typically appear as "Ships from and sold by [Platform Name]" on e-commerce sites. This designation often gives customers confidence in the product's authenticity and quality, especially crucial in the sneaker world where counterfeits are prevalent. First-party selling is an attractive model for many larger sneaker brands as it allows for bulk sales, consistent order volume, and reduced responsibilities regarding individual order fulfillment and customer service. However, this means the brand relinquishes control over pricing and direct customer relationships. In essence, 1P or First-Party Sellers prioritize a streamlined relationship with major retail platforms, ensuring broad market access and simplified sales processes, albeit with less direct engagement with the end consumer.