The Smartest Amazon Seller
The Smartest Amazon Seller
SmartScout
Episode 337 - Should You Switch From Amazon 3P to 1P?
23 minutes Posted Sep 30, 2026 at 12:59 am.
Intro & The 3P to 1P Shift
Chinese Vendor Account Crackdowns
1P Benefits: Algorithm & Cash Flow
Earl’s Story & Amazon Fee Creep
Flat River Group’s $250M+ 1P Model
Why Amazon Axed Chinese Distributors
Amazon’s Push Toward 1P Distributors
Maintaining Brand & Price Control
Hands-Off Ads & Operations
3P vs. 1P Profit Math
Testing 1P With a SKU Subset
Bypassing Annual Vendor Negotiations
Preventing Out-of-Stocks
Shopify & 3PL Cost Savings
What’s Next for Vendor Models
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Show notes
Earl Pardo, Business Development Independent Rep @ Flat River Group, joins the podcast to explore the emerging reverse trend of Amazon sellers moving from 3P (Third-Party) back to 1P (Vendor Central / First-Party) distribution models.As independent sellers face increasing Amazon fee structures, fulfillment fee creep, storage penalties, and complex cash flow cycles, many brands are leveraging 1P distributor relationships to pull cash flow forward and offload operational headaches.While entry-level sellers struggle with unpredictable net margins and managing dozens of hidden FBA costs, established 3P brands are using 1P distributor networks like Flat River Group to gain algorithm advantages, lock in predictable payouts, and eliminate ad management and storage expenses.To build a simplified and scalable business model, Earl breaks down how 1P distributors provide access to Amazon AVS support, manage drop-shipping across 30+ e-commerce retailers, and mitigate Annual Vendor Negotiation (AVN) pressure for mid-market brands.
Episode Notes:
 
Related Post: Top 10 Largest Amazon Vendor Brands (2026 Data)
How to Reach Earl:
Website: flatrivergroup.com
LinkedIn: linkedin.com/in/earl-pardo-0a45b931a
Scott’s Links:
LinkedIn: linkedin.com/in/scott-needham-a8b39813
X: @itsScottNeedham
Instagram: @smartestseller
YouTube: www.youtube.com/@smartestamazonseller2371
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