Overview

A successful Amazon distribution strategy often resembles a well-oiled machine of interlocking gears, with multiple channels working in concert. Amazon’s marketplace landscape is evolving rapidly, and brands—especially Amazon vendors—must adapt their distribution models to keep up. In late 2024, Amazon began terminating many small Vendor Central accounts, pushing affected brands to shift to the third-party seller model(marketplace-universe.com). This shake-up has left vendors and their agency partners scrambling for solutions. How can brands optimise their channel mix to not only survive such changes but thrive in 2024 and beyond? One emerging answer is a “tri-hybrid” distribution strategy, which leverages a combination of Vendor, Seller, and Amazon broker channels to maximise resilience and growth. In this article, based on the previous Marketplace Masters episode, Frieder Kuhn and Florian Schneider from Valuezon unpack how agency professionals can build multi-channel distribution strategies to win big.

The Evolving Amazon Ecosystem and Why 2024 Changes Everything

Amazon remains the dominant force in e-commerce (in Q4 2024, third-party sellers accounted for a record 62% of all units sold on Amazon(revenuegeeks.com)), and the company is actively reshaping how brands participate on its platform. Historically, many brands started as first-party Amazon Vendors—selling wholesale to Amazon via Vendor Central—because it offered simplicity and scale. Amazon handled logistics, fulfillment, and customer service, allowing brands to focus on production.

However, this convenience came at the cost of control: Amazon set retail prices and managed the listings, and vendors were subject to strict terms and unpredictable purchase orders. By contrast, the Seller Central route (third-party, or 3P, selling) gave brands control over pricing, branding, and inventory, but required them to handle the complexities of retail operations themselves (or with an agency). For years, it was an either-or decision: Amazon Vendor vs. Seller. More recently, savvy brands adopted a hybrid model—operating both 1P and 3P channels—to get the best of both worlds.

2024 has accelerated the need for a new approach. Amazon’s push to streamline operations has led to a Vendor Central shake-up, with the company phasing out smaller vendors in favour of larger, enterprise-level suppliers(marketplace-universe.com). Many brands generating under $5–10 million annually in Amazon sales received notices in 2024 that Amazon would stop sourcing their products for 1P retail, effective immediately(channelbakers.com).

Amazon encouraged these vendors to transition to 3P, highlighting that they could maintain access to the same customer base and Prime services as independent sellers. The message to brands was clear: if you’re not a top-tier vendor, you need to take control of your Amazon sales channel or find someone who will. For Amazon agency professionals, this trend has major implications. Clients who long relied on vendor status now face operational challenges in building third-party seller capabilities from scratch – from warehousing and fulfillment to Amazon SEO and advertising optimisation.

Key success factors in the current Amazon ecosystem include agility, control, and diversification. Brands that want to succeed in 2024 must be able to pivot quickly between channel models as circumstances require. They need to retain control over pricing and supply chain to protect margins, yet also ensure they don’t lose the benefits of Amazon’s logistical prowess and reach. This is where the tri-hybrid distribution model comes in as a strategic game-changer.

From Vendor or Seller to Tri-Hybrid: An Advanced Distribution Model

Rather than viewing Vendor vs. Seller as a binary choice, leading brands are now combining multiple approaches simultaneously. In a recent MerchantSpring Marketplace Masters webinar, Frieder Kuhn and Florian Schneider of Valuezon (a Germany-based Amazon consultancy and distributor) highlighted the power of what they call the “tri-hybrid” model. This approach orchestrates three channel strategies in parallel: selling as a 1P Vendor, selling as a 3P Seller, and partnering with a third-party Amazon distributor (or “broker”).

Why the need for three channels? The tri-hybrid strategy is about building resilience and flexibility into your Amazon sales. “It’s not about choosing one channel over the other, but seamlessly orchestrating between all three,” Frieder noted during the webinar, emphasising that brands can fluidly utilise vendor, seller, and broker models together depending on the situation. In practice, a brand might primarily operate as a Vendor for core products (enjoying large purchase orders and Amazon’s logistics), while also running a Seller account for newer or niche items and maintaining a backup seller channel through a broker partner as insurance against disruptions. This ensures that if any one channel encounters an issue (for example, Amazon stops ordering a certain item, or a Seller account issue arises), the other channels can compensate with minimal downtime.

Vendor, Seller, or Broker? Each model has distinct strengths and limitations that contribute to a comprehensive strategy:

• Vendor Central (1P) – Pros: Hands-off fulfillment and Prime logistics handled by Amazon; potentially large volume orders; higher buy box win rate due to Amazon being the seller. Cons: No control over retail pricing (Amazon can discount at will); limited access to customer data; slower content changes and less agility; reliance on Amazon’s purchasing decisions (risk of products being deemed unprofitable (CRaP) and cut from orders). Vendors also face annual negotiations and can be heavily squeezed on terms(marketplacemaniacs.com). In short, the vendor model offers scale but at the cost of dependence and flexibility.
  
  
• Seller Central (3P) – Pros: Full control over pricing, listings, and branding; direct access to customers and their feedback; flexibility to launch products or adjust strategy quickly. Using Fulfillment by Amazon (FBA) lets sellers outsource logistics while maintaining control over stock levels and strategy. Cons: Must manage or outsource all operations – fulfillment (if not using FBA), customer service, tax registrations in each market, etc. There are higher resource requirements and a learning curve to master Amazon’s tools and algorithms. Still, being a 3P seller is often more profitable and data-rich, which is why Amazon now favours this model for most brands(amplifyy.com).
  
  
• Broker/Distributor (2P via a Partner) – Pros: The broker model combines the best of both worlds for brands that lack in-house Amazon expertise or infrastructure. In this arrangement, you work with an experienced third-party seller (the broker) who buys your products at wholesale and then sells them on Amazon on your behalf. “You could look at it as a strategic distribution channel partner for your Amazon business,” explained Florian, Valuezon’s Head of Distribution. “It combines the convenience of a vendor approach with the expertise and scale potential of a seller. It’s basically a turnkey solution — you take on 0% of the risk, and you get 100% of the upside.” 
  
  As a brand, you offload the heavy lifting of Amazon operations to the broker: they handle listing optimisation, SEO keyword research, inventory logistics, Amazon PPC advertising, customer service—essentially A to Z account management—while you focus on product and brand development. Cons: You share a portion of margins with the partner, and you relinquish some direct control over the Amazon presence (quality of execution depends on the broker’s competence). It’s crucial to choose a broker with a strong track record, because your product’s success will rely on their expertise. Nonetheless, brokers often offer flexible terms and faster market entry, making this an attractive route for brands that need to scale on Amazon quickly or avoid internal overhead(marketplacemaniacs.com).
  
  

In the past, a hybrid strategy typically meant using both Vendor and Seller channels (1P + 3P). The tri-hybrid model extends this by adding the broker as a third element—essentially a “2P” partner that sells your product for you. This tri-pronged approach is emerging as an advanced strategy for 2024 because it addresses many of the new challenges brands face. “Nowadays, it’s more about diversifying your business,” said Florian. Brands need the agility to shift sales between channels or use multiple at once, not only for growth but for risk mitigation.

Why Consider an Amazon Broker? Common Use Cases for the Broker Model

Working with an Amazon broker (also known as a distributor or 2P seller) might sound unfamiliar or even risky to those used to full control. But there are compelling scenarios where bringing in a broker partner can add tremendous value. Based on Valuezon’s experience with hundreds of clients, here are some common use cases where the broker model shines:

• Backup for Vendor Out-of-Stocks and Buy Box Issues: One of the biggest headaches for vendors is when Amazon decides to stop ordering a product – often because it’s unprofitable at the current cost, known as CRaP (“Can’t Realise a Profit”). When Amazon flags an item as CRaP, it may halt purchase orders and even remove the buy box, effectively stalling that ASIN’s sales(marketplacemaniacs.com). Having a broker as a backup seller allows the product to continue selling to consumers without interruption. If Amazon Retail (1P) drops your item, your broker can immediately step in via their 3P seller account to keep the listing active and in stock. Similarly, if Amazon suppresses the buy box due to pricing discrepancies (say, a lower price found on another site), a trusted 3P seller can win the buy box and restore sales velocity. This backup mechanism protects the ranking and reviews that the product has accumulated over time, preventing a loss of momentum.
  
  
• Protection Against Account Suspensions: Every Amazon seller knows that account suspensions or listing bans can occur unexpectedly, whether due to algorithmic flags or policy issues. Vendors are not immune to sudden contract changes either (as we saw with the 2024 vendor purge). Brands that rely on a single account risk a total shutdown of Amazon revenue if that account runs into trouble. By maintaining multiple sales accounts/channels—including through a distributor partner—a brand creates redundancy. Frieder shared that one client explicitly set up an “emergency system”: in case their primary Amazon account was ever suspended, the partner distributor was ready to start selling their products the very next day. This kind of contingency plan can save weeks or months of lost sales. Essentially, a broker can act as a fail-safe seller account to ensure business continuity.
  
  
• International Expansion Made Easy: Expanding to new Amazon marketplaces (e.g. going from the U.S. or Australia to Europe or vice versa) is a prime example of when a broker model can accelerate growth. Launching in Europe means navigating complex VAT registrations, compliance regulations for each country, and significant logistical setup. It can take months and significant cost for a brand to establish local entities, tax IDs, and warehouse networks across Amazon’s EU marketplaces. A broker who already operates in those regions can serve as a shortcut. 
  
  If you have a partner that already has the entire infrastructure set up for that continent, they can take your product and launch it in all the European marketplaces very quickly,” Florian explained. The broker handles all country-specific hurdles—VAT filings, translations, compliance, local fulfillment—under their existing seller account that has history and ratings. This allows the brand to test the market and gain traction abroad without the upfront investment and risk. (valuezon.de) If the products take off, the brand can later decide to bring the operations in-house or continue the partnership. In either case, using a distributor partner is a savvy way to expand globally via Amazon while conserving time and resources.
  
  
• Augmenting Limited Team Resources: For some brands (especially manufacturers or B2B companies), building an in-house Amazon team doesn’t make strategic sense. They may lack the e-commerce know-how or simply prefer to focus on product development and their core B2B business. An Amazon broker offers a turnkey direct-to-consumer solution. As Valuezon describes it, “we buy your products and give them massive visibility on Amazon… allowing you to focus on your core business.”(valuezon.de) The broker’s expertise essentially becomes an outsourced e-commerce department. This is also useful as a temporary measure – for example, if a brand’s Amazon manager leaves suddenly, a broker could fill in to manage the channel until a new hire is up to speed. Or if a company is unsure about the viability of Amazon for their product, they can pilot with a broker managing sales, then decide on long-term strategy once results are in.
  
  
• Navigating Hybrid Models Without Channel Conflict: Some brands already sell on Amazon as 3P but also have an invite to Vendor Central for certain products or markets. Managing a hybrid strategy can get complicated, particularly when it comes to price control and distribution agreements. By introducing a broker as a third element, brands can offload some channels entirely to the partner. For instance, a brand might keep selling 1P in its home country where it has a good vendor relationship, but use a broker to run 3P in other regions or for a particular product line. The broker can also act as a neutral party to hold inventory and distribute to Amazon, which may help maintain MAP pricing and channel harmony if the brand also sells through other retailers. In short, a broker can be a flexible plug-in to complement a brand’s existing channel mix, filling gaps where the brand lacks capacity or avoiding scenarios that could cause channel conflict (like a brand’s own seller account competing with Amazon Retail for the same ASIN).
  
  

In all these cases, the overarching theme is risk management and strategic growth. The broker model is not about giving up control to an outsider; it’s about partnering with a specialist to handle specific aspects of the Amazon channel more effectively than you could alone. Florian emphasised viewing it as a true partnership:

“I’d love for people to look at this as a partnership rather than a service. The better job I do as a broker, the better your products sell — the more money you make, and the more I can reorder. It’s a cycle where both sides win.”

In a well-structured broker arrangement, incentives are aligned for mutual success, since the broker’s sales and your wholesale revenues grow together.

Making the Tri-Hybrid Model Work: Tips for Orchestrating Multiple Channels

Implementing a tri-hybrid Amazon strategy requires careful planning and coordination. Here are a few best practices and strategic considerations for agencies and brands looking to succeed with this model:

• Clearly Define Roles and Rules for Each Channel: Delineate which products or markets will be handled by Vendor, Seller, and Broker, respectively. For example, you might decide that your top 10 high-volume SKUs stay 1P (for stability and bulk orders), new product launches go 3P (for faster iteration on content and pricing), and overflow or international sales go through the broker. Set rules to prevent internal competition—if both you and your broker could list the same item, coordinate so only one channel sells it at a time to avoid price undercutting or brand confusion.
  
  
• Maintain Control of Pricing Strategy: One big advantage of adding a 3P channel (either your own or via broker) is the ability to control pricing and margins. Even if you remain a Vendor for some products, use your 3P presence as leverage in annual vendor negotiations. If Amazon demands untenable discounts, you have the option to shift more volume to 3P, where you set the price. Make sure your agreements with any broker partner include pricing policies that align with your overall strategy (e.g. MAP enforcement, not selling below a certain price without permission). This ensures the channel mix optimisation truly drives profitability.
  
  
• Leverage Data and Analytics Across Channels: Running multiple channels generates a lot of data—retail analytics from Vendor Central, business reports and ad data from Seller Central, and whatever insights your broker provides from their sales. Invest in a strong analytics solution (such as MerchantSpring’s own marketplace analytics platform) to consolidate and compare performance across channels. Identify where you’re winning or losing: Is a product performing better via 3P due to more aggressive advertising? Did your broker achieve a higher conversion rate with different content? Use these insights to continuously refine the distribution strategy. A data-driven approach will help validate the tri-hybrid model by showing the incremental gains from each piece.
  
  
• Establish Tight Communication with Partners: Treat your Amazon broker or distributor as an extension of your team. Regular communication is key to ensuring brand alignment. Florian and Frieder mentioned that transparency is part of their broker model – sharing BI dashboards and having frequent performance reviews with clients. You should expect that level of openness. Schedule monthly or bi-weekly calls to go over sales numbers, stock levels, upcoming promotions, and any issues (like policy changes or listing updates). Also, maintain direct communication with your Amazon vendor manager (if you have one) and internally between your e-commerce and sales teams. Orchestrating a tri-hybrid approach is like conducting an orchestra – all players must be in sync, following the same score.
  
  
• Plan Inventory and Fulfillment Wisely: With multiple selling channels, inventory allocation can get tricky. You don’t want Amazon 1P ordering too much and leaving your 3P channel out of stock, or vice versa. Carefully forecast demand and perhaps designate separate inventory pools for each channel (or ensure your broker holds their own stock). For international sales via a broker, clarify who manages logistics into Amazon fulfillment centres. Many brokers, like Valuezon, have multi-country warehousing solutions (valuezon.de). Utilise those to minimise cross-border shipping costs and delivery times. Essentially, make sure your supply chain team is on board to support a multi-channel distribution plan without stockouts or overstock in one channel.
  
  
• Monitor Performance and Adapt: Finally, continuously evaluate the results. The tri-hybrid strategy is not static; you might shift emphasis among channels over time. For example, if your broker-led Europe expansion is booming, you may allocate more SKUs to them, or conversely, if your own Seller Central store outperforms expectations, you might bring more ASINs in-house. Keep an eye on key metrics like sales growth, ROI on advertising, buy box percentage, and account health for each channel. If the Vendor channel starts posing more problems (e.g. mounting chargebacks or tougher terms), it could be a signal to transition further to 3P. The beauty of having all three options in play is agility – you can pivot as needed. But that requires diligent monitoring and a willingness to adjust the plan.
  
  

Conclusion: Diversify and Conquer (Your Next Steps)

The core insight for 2024 is that diversification equals strength in the Amazon channel. By embracing a tri-hybrid distribution model – intelligently combining Vendor, Seller, and Broker strategies – brands can insulate themselves from Amazon’s curveballs while unlocking new growth opportunities. Instead of being hostage to a single approach, you gain multiple levers to pull. As we’ve discussed, this can mean the difference between weathering a vendor purge unscathed or seeing your Amazon revenue grind to a halt. It can mean rapidly expanding into Europe or other markets ahead of competitors. And it ultimately means building a more robust, scalable Amazon business for your clients or your own brand.

For Amazon agency professionals, advising clients on such advanced strategies is becoming a key differentiator. It’s no longer just about optimising listings or ads – it’s about guiding overall channel strategy on Amazon. The tri-hybrid approach is one way to demonstrate thought leadership and deliver tangible results.

🎯 Ready to learn more and see these strategies in action? Be sure to watch the full webinar with Frieder Kuhn and Florian Schneider for a deeper dive into optimising Amazon distribution (available on-demand). If you found these insights useful, subscribe to our newsletter for more expert discussions and Amazon strategy tips. And if you’re looking to implement a tri-hybrid model or need help with Amazon analytics across multiple channels, don’t hesitate to contact us at MerchantSpring. Our platform is designed to give agencies and brands the visibility and reporting they need to master complex multi-channel operations.

Ultimately, success on Amazon in 2024 will favour those who stay agile and open to new models. As the Marketplace Masters webinar highlighted, you don’t have to go it alone—whether through strategic partnerships or innovative use of Amazon’s programs, there’s always a path to keep growing. Now is the time to evaluate your distribution mix, consider bold moves like the broker model, and take your Amazon strategy to the next level.