What are the differences between dropship and private marketplaces? Learn why retailers are turning to a hybrid approach with these third-party (3P) commerce business models to reach more consumers.

In this guide, we define:

  • What is dropship?
  • What is a private marketplace?
  • What is a hybrid dropship and private marketplace business model?
  • How can retailers use technology to manage any 3P business model through a unified commerce platform?

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What is Third-Party (3P) Commerce?

For brands, 3P commerce helps extend owned inventory to unowned channels (e.g. Amazon, Walmart.com) to reach more consumers through a multichannel selling strategy.

For retailers, 3P helps access unowned inventory by letting brands sell products directly to consumers through a retailer storefront, typically through a dropship or marketplace approach.

Why sell 3P? It offers both brands and retailers benefits in inventory management, scalability, and flexibility to eventually reach wider audiences and boost revenue growth.