In recent years, Amazon He has experienced a significant change in his business model, going from being a direct retailer to becoming a platform where the External sellers. According to Amazon's latest performance report, in the fourth quarter of 2024, the 62% of the units sold Through the platform they were managed by third parties (almost double that a decade ago), thus reaching a Historical maximum. This is due to a Financial logic of the company, which seeks to optimize income and reduce operational risks.
Evolution of the Amazon business model
Since its foundation, Amazon has sought to expand its product catalog. Does 25 yearshe launched his Marketplace with the aim of becoming the “store of everything.” Initially, Third -party sales represented less than a third of the total units sold. However, over time, this proportion has grown constantly, especially between 2013 and 2016, when the participation of external sellers increased a percentage point per quarter for eleven consecutive quarters.
This growth is no accident. Amazon has been redefining their commercial relationsmoving from agreements direct sale (1p) Towards a Third Party Model (3p). This strategy allows Amazon reduce risks associated with inventory management and focus on more profitable activitiessuch as the collection of sellers, the generation of advertising income and all its cloud services (infrastructure, data storage, safety, data analysis).
In fact, according to the latest financial results of the company, Amazon Web Services (AWS) registered the highest growth in income, with 107.6 billion (+19%), consolidating as the most profitable business (even more than the North America division).
Implications for sellers and the market
For the Sellersthis transition presents both challenges and opportunities. When operating as third parties, sellers have greater control over prices, inventory and marketing strategies. However, they must also assume additional responsibilities, such as logistics and customer service. In addition, Amazon has increased rates and adjusted policies, which can affect the benefit margins of sellers.
For him market in generalthis trend reinforces Amazon's position as an essential platform for electronic commerce. As more external sellers join, the variety of products available for consumers increases, consolidating Amazon as the preferred destination for online purchases.
Differences between models 1p and 3p in Amazon
Amazon operates under two main sales models: 1p (First-Park) and 3p (Third-Park). In model 1P, Amazon acts as a retailer and buys products directly from suppliers, managing price setting, inventory and distribution. On the other hand, in the 3P model, the External sellers They market their products at the Amazon Marketplace, setting their own prices and managing their inventory, although they can choose to use the services of Fulfillment by Amazon (FBA) For logistics.
In recent years, Amazon has been eliminating supplier accounts 1PL (First-Park Logistics)which include medium vendors who previously worked under model 1p. This is because Amazon seeks to optimize costs and reduce the complexity of their retail operation, encouraging these sellers to operate as third parties (3p).
This change allows Amazon to focus on the Advertising and logistics serviceswhich generate higher benefit margins, while transfers the risk of the inventory to the sellers themselves.
Amazon continues to fill its coffers
Amazon closed 2024 with net sales of 638,000 million dollarsa growth of 11% compared to the previous year. The net income was 59.2 billion (+95%), and operating income grew a 85.9%to the 68.6 billion.
The tonline represented 40.2% of quarterly income, with 75,556 million In sales, while services contributed 106,657 millionovercoming the 81.135 million obtained for the sale of products.
Despite the positive results, the company anticipates a more moderate growth for the first quarter of 2025, projecting net income between 151,000 and 155,500 million dollarswhich represents an increase of 5% to 9% compared to the previous year. This forecast considers an unfavorable impact of approximately 2.1 billion dollars due to fluctuations in exchange rates.
Photo: Depositphotos.
