The Amazon "Hybrid" Sales Model
Strategic Amazon Selling Programs for Ambitious Brands.
The Amazon Hybrid model refers to selling goods directly to Amazon to be sold on the platform, known as: first-party Vendor (1P) whilst at the same time selling goods on Amazon via a partner or vendor, known as: third-party Seller (3P).
Why are Leading Brands going Hybrid?
Leading Brands use the Hybrid Model to take back control and protect their Brand presence, position against and beat competitors and to grow online sales, profitably.
Luzern successfully manages this 3P Hybrid model for leading brands across the globe, ensuring they stay in control of pricing, maintain the direct relationship with their customers, whilst extending their inventory and driving sales of additional product lines beyond 1P.
How Luzern helps Brands Reap the benefits of 3P even as a 1P seller
With Luzern, you can safely add your 3P (3rd Party/ Seller Central) Marketplace to Amazon, even if you already sell 1P to Amazon (1st Party/ Vendor Central). Luzern manages your 3P account, enabling you to sell products that are not being sold on 1P.
A Hybrid Model enables you to build up listings and history, growing sales and margin across 3P as well as protecting your 1P direct with Amazon, avoiding channel conflict or any “race to the bottom” pricing battles.
Take Control & Drive Sales, profitably!
With a hybrid model, Brands can sell part of their SKUs directly to Amazon (1P) and the rest via the marketplace (3P).
Amazon is typically selective about the SKUs that they carry, ensuring they sell the most profitable. That could leave your Brand in a position where you are not able to sell other SKUs. However, the good news us that selling 3P with Luzern, you can gain better control of pricing, realise better margins and proactively control SKU range and selection.
Manage price points and sell at the price that fits your pricing strategy.
Tackle Squeezed Margins
Many Brands are finding themselves under extraordinary margin pressure when selling to Amazon directly (1P), which is generally triggered by the price war to win the buy box.
Amazon will, of course, seek to maximize their margins and push what is selling best. They then make it clear to the Brands that they need better prices or they will stop ordering some or all of the products. This can equate to millions in lost revenue if the “demands” aren’t met. If you sell direct to Amazon via the 1P program, Amazon acts as a retailer and can implement price adjustments independently.
However, With Luzern as your vendor via the 3P Hybrid model, Brands have price autonomy over their products. Luzern facilitates independent price changes to suit your strategy when it comes to pricing. The Hybrid Model delivers flexibility and gives more control back to the Brand.