3P

In eCommerce, the term “third-party” (3P) refers to a model where an online marketplace such as Amazon Marketplace or Walmart Marketplace facilitates transactions for brands, manufacturers, or independent sellers without purchasing or owning the inventory. The sellers retain ownership of the products and sell them directly to consumers through the marketplace.

In this model, the seller is responsible for product pricing, inventory, and supply, while the platform typically provides services such as listing tools, advertising, fulfillment (if the seller opts into it), and customer access. The platform collects fees for these services rather than taking on inventory risk.

Unlike first-party (1P) transactions—where the platform buys and resells the goods—3P transactions are recorded in terms of gross merchandise value (GMV), which measures the total value of products sold through the platform. In contrast, 1P sales are reported as net sales by the retailer, reflecting revenue from goods it owns and sells.