Amazon Profit Soars to 40% After VENDO’s 3P-to-1P Shift

July 1, 2025

+25%

Profit Margin
(from 15% under 3P to 40%+ under 1P)

100%

Subscribe & Save Order Continuity
during the transition 

Zero

Out-of-Stocks
due to strategic use of Born to Run 

1P

Successful Fall Prime Promo Launched
within 30 days of go-live 

Context

A fast-scaling energy beverage brand partnered with VENDO to transition from Amazon’s 3P marketplace ("Seller Central") to the 1P vendor ("Vendor Central") model. The goal: preserve velocity, increase margin, and ensure a frictionless customer experience.

Challenges:

  • Maintaining sales momentum during migration
  • Retaining existing Subscribe & Save (SnS) subscribers
  • Navigating catalog listing blocks and operational setup
  • Establishing promotional visibility for a major tentpole event (Fall Prime)
  • Key Strategies & Execution

    1. Leveraged Born to Run (BTR) for Immediate Inventory Replenishment

    VENDO leveraged Amazon’s Born to Run (BTR) program to enable large initial inventory shipments without waiting for traditional PO cycles. This capability was crucial to sustaining momentum during the launch of 1P offers. With a significantly high Customer Acquisition Rate limit compared to other vendors, VENDO was able to replenish inventory aggressively and prevent early out-of-stocks.

    2. Successfully Migrated Subscribe & Save Subscriptions

    To protect recurring revenue, VENDO collaborated with Amazon to port over active 3P SnS subscriptions directly to the new 1P ASINs. This strategic move minimized disruption to loyal customers and preserved order continuity, resulting in strong initial sales on the 1P listings.

    3. Achieved Significant Margin Growth

    A key outcome of the transition was a substantial increase in margins—from 15% under the 3P model to over 40% on 1P. This financial upside created room for reinvestment in promotions and other marketing efforts.

    4. Operational Support and Strategic Promotions

    VENDO partnered with internal Amazon teams to streamline the transition. This included resolving catalog blocks, facilitating SnS migration, and launching a 20% Best Deal during Fall Prime—executed within 30 days of the 1P go-live date. This collaboration ensured a smooth operational setup and strong visibility out of the gate.

    Conclusion

    This successful 3P to 1P transition demonstrates the power of leveraging Amazon-native programs like Born to Run and Subscribe & Save migration—paired with hands-on support from VENDO. Through established relationships with internal Amazon teams and proven operational expertise, VENDO has guided multiple brands through smooth, strategic transitions. The result: significantly higher margins, a seamless customer experience, and a scalable foundation for long-term growth on the 1P platform.