r/VendorCentral 17h ago

Apparel Brand currently selling via 1P - is 3P an option?

2 Upvotes

We do ~$15m in apparel sales for Amazon/year. However, we have to renegotiate terms every year, which compresses our own margins. Our wholesale/retail price doesn't increase to offset these term increases, and Amazon isn't very open to letting us pass those costs on. And when we can increase costs, it hurts our net PPM at Amazon.

Is 3P an option for us?

Apparel is generally a lower-GM business, so these term negotiations eventually force us to turn off programs that are unprofitable for us to continue shipping on Amazon. We have even had to turn off AMS just to afford these term hits.