3P or 2P? Choosing the right marketplace model for each channel

Most brands start a marketplace conversation with one question: which channels? The better first question is which model? The same retailer can be a very different business depending on whether you sell on it as a third-party seller (3P) or supply it as a drop-ship vendor (2P).

What 3P means in practice

As a 3P seller you list your own products on the marketplace, set your own prices and own the offer. Orders arrive in your seller account, and you, or your warehouse partner, ship them to the end customer.

• You control pricing, promotions and assortment.
• You carry the stock risk and the fulfilment promise.
• Marketplace fees and performance metrics apply to your account.

What 2P means in practice

In a 2P or drop-ship relationship the retailer sells your products under its own offer. It receives the customer order, and you ship it on the retailer's behalf, usually with the retailer's packing and labelling rules.

• The retailer sets the retail price; you agree a cost price.
• Order, shipment and cancellation data must flow back to the retailer on time.
• Onboarding is closer to a vendor setup than a seller registration.

How to decide, channel by channel

The model is not a brand-wide decision. Many brands run 3P on one marketplace and 2P on another. Look at three things for each channel:

1. Control: do you need to own the price and the offer on this channel?
2. Operations: can your warehouse meet the retailer's shipping and labelling requirements?
3. Availability: is the model open to your brand and category on this channel today?

The right model is the one your operation can deliver every day, not only on launch day.

Where Colibri fits

Colibri shows which models each channel supports on its channel pages. Whichever you choose, product listings, orders, inventory, shipments, returns, cancellations and settlements are kept in sync from one product record, so adding a second model later does not mean starting again.