Earl Pardo, Business Development Independent Rep @ Flat River Group, joins the podcast to explore the emerging reverse trend of Amazon sellers moving from 3P (Third-Party) back to 1P (Vendor Central / First-Party) distribution models.
As independent sellers face increasing Amazon fee structures, fulfillment fee creep, storage penalties, and complex cash flow cycles, many brands are leveraging 1P distributor relationships to pull cash flow forward and offload operational headaches.
While entry-level sellers struggle with unpredictable net margins and managing dozens of hidden FBA costs, established 3P brands are using 1P distributor networks like Flat River Group to gain algorithm advantages, lock in predictable payouts, and eliminate ad management and storage expenses.
To build a simplified and scalable business model, Earl breaks down how 1P distributors provide access to Amazon AVS support, manage drop-shipping across 30+ e-commerce retailers, and mitigate Annual Vendor Negotiation (AVN) pressure for mid-market brands.
Episode Notes:
00:00 - Intro & The 3P to 1P Shift
01:40 - Chinese Vendor Account Crackdowns
02:08 - 1P Benefits: Algorithm & Cash Flow
03:42 - Earl’s Story & Amazon Fee Creep
05:54 - Flat River Group’s $250M+ 1P Model
07:45 - Why Amazon Axed Chinese Distributors
09:20 - Amazon’s Push Toward 1P Distributors
10:24 - Maintaining Brand & Price Control
11:38 - Hands-Off Ads & Operations
12:25 - 3P vs. 1P Profit Math
16:43 - Testing 1P With a SKU Subset
17:45 - Bypassing Annual Vendor Negotiations
20:08 - Preventing Out-of-Stocks
22:36 - Shopify & 3PL Cost Savings
22:47 - What’s Next for Vendor Models
Related Post: Top 10 Largest Amazon Vendor Brands (2026 Data)
How to Reach Earl:
Website: flatrivergroup.com
LinkedIn: linkedin.com/in/earl-pardo-0a45b931a
Scott’s Links:
LinkedIn: linkedin.com/in/scott-needham-a8b39813
X: @itsScottNeedham
Instagram: @smartestseller
YouTube: www.youtube.com/@smartestamazonseller2371
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Blog: https://www.smartscout.com/blog
