+What is an Amazon 3P distributor and how is it different from an agency?
A 3P distributor buys your inventory, becomes the seller of record on Amazon, funds advertising, and resells under exclusive distribution. The brand receives wholesale margin upfront with no inventory or ad-spend risk. An agency operates your account on a retainer or revenue-share basis without taking ownership of inventory.
+When does a 3P distribution model make sense for a CPG brand?
When the brand has proven Amazon demand but cash flow can't fund the inventory or ad spend the data is begging for. A 3P partnership transfers capital risk to the distributor in exchange for resale-margin economics. If the brand has the capital and just lacks operational bandwidth, an agency engagement is usually cheaper and more flexible.
+What gross margin does a brand need for 3P distribution to work?
Typically ≥20% gross margin at the brand level. Below 20%, the unit economics don't support both the brand's wholesale margin and the distributor's resale margin after buy and ad costs. Eleviam requires ≥30% target ROI on capital deployed, which translates to ≥20% margin requirement.
+Will the brand lose control of pricing and brand voice in a 3P partnership?
In a well-structured 3P partnership, brand strategy stays with the brand. The distributor executes on agreed pricing architecture, brand voice, and category positioning. Tactical changes happen inside the operating cadence with brand approval. The contract should explicitly preserve brand-approval gates on any pricing or positioning change.
+What's the difference between a 3P distributor and an Amazon aggregator?
An aggregator (Thrasio, Razor Group, Perch) acquires the brand outright. A 3P distributor leaves brand ownership intact and partners on the Amazon channel only. Aggregators are an exit. 3P distributors are a growth tool.
