The Amazon Hybrid Model: A Strategic Approach to Vendor & Seller Growth

BLOG: Retail

5 Min Read | February, 2026 | BY Benjamin Weyrich

Understanding the Amazon Vendor and Seller Models

For many brands, Amazon is one of their most important sales channels. At the same time, it is a complex environment with its own rules, processes, and dependencies.

Larger manufacturers often start out as Vendors (1P), selling directly to Amazon. This setup can drive scale and visibility through higher order volumes, but it also comes with limited influence over pricing, commercial terms, and margins.

Other brands choose the Seller model (3P) instead. Running a Seller account usually means more operational effort, but it also allows brands to keep control over pricing, assortment decisions, and how products are positioned on the marketplace.

The hybrid model combines both approaches. By using Vendor and Seller accounts in parallel, brands can play to the strengths of each model, reduce dependency on a single setup, and react more flexibly to changes on Amazon. This is why more brands are moving toward hybrid structures to support long-term growth.

Running Vendor and Seller in Parallel: The Logic Behind Hybrid Setups

In a hybrid setup, brands operate both a Vendor and a Seller account in parallel. The goal is usually not to run both models in the same way, but to assign clear roles within the product portfolio. Products with higher margins, niche demand, or new launches are often managed through the Seller channel, while high-volume items or products with more complex logistics remain in the Vendor setup.

This structure gives brands more room to manoeuvre. It reduces the risk of supply gaps, allows for more flexibility in pricing decisions, and makes it easier to use promotions in a targeted way rather than across the entire assortment.

In practice, hybrid strategies tend to follow one of two directions:

Some brands take a Vendor-first approach, where most revenue is generated via the Vendor account and the Seller account acts as a safeguard or tactical addition.

Others prioritize the Seller channel and only activate the Vendor model for selected categories, products, or markets.

Regardless of the setup, clear rules are critical. Responsibilities, pricing logic, and product ownership need to be clearly defined between Vendor and Seller channels to avoid internal friction and channel conflicts.

5 Reasons Why Brands Choose a Hybrid Amazon Setup

Greater control over pricing and assortment: The Seller channel gives brands full control over pricing, promotions, and margin management. In the Vendor model, Amazon sets the retail price, making it necessary to closely monitor Net PPM to avoid delistings. With a Seller account, brands can decide independently which products remain active in the assortment, even if margins are temporarily under pressure.
Reduced dependency and better risk management: A hybrid setup helps diversify risk. If Amazon pauses Vendor orders, applies strong price pressure, or issues operational restrictions, the Seller channel can often compensate and protect at least part of the revenue stream.
Faster go-to-market for new products: Products can be listed and sold via the Seller channel without waiting for Amazon purchase orders. This allows brands to launch new items more quickly and test performance early in the product lifecycle.
More flexible logistics and inventory management: Combining Vendor and Seller logistics options enables brands to optimize stock levels and reduce operational friction. Especially in times of rising transportation and storage costs, this flexibility can have a direct impact on profitability.
Broader data access and better decision-making: Vendor Central and Seller Central each provide valuable insights. When both data sources are used together, brands gain a more complete view of their Amazon business. Solutions like CATAPULT consolidate this data and turn it into actionable insights, enabling faster decisions and a clear competitive advantage.

What Brands Need to Watch Out for in a Hybrid Model

Increased operational complexity

Running both a Vendor and a Seller account requires additional effort. Reporting, account maintenance, and day-to-day coordination effectively double, increasing the operational workload.

Risk of channel conflicts

If the same products or keywords are managed across both models, internal competition can arise. Without clear rules, this can lead to pricing conflicts, inefficient media spend, and unclear ownership.

Higher demands on internal alignment

Marketing, pricing, and logistics teams need to work closely together. A hybrid setup only creates value if responsibilities and decision-making processes are clearly defined across channels.

Legal and tax considerations

Operating a Seller account comes with separate invoicing and tax obligations. These requirements add complexity, especially for brands that previously operated exclusively as Vendors.

Potential friction with Amazon

Hybrid approaches are not always welcomed by Amazon Vendor managers, as shifting volume to the Seller channel can impact Vendor revenue and margins. Careful communication and coordination with Amazon are therefore critical when implementing or scaling a hybrid model.

How to Set Up a Hybrid Model Successfully

For brands moving from a pure Vendor setup toward a Seller or hybrid model, starting with a pilot can be a smart first step. This is especially helpful for teams with limited experience managing multiple Amazon account types. Testing the approach on a defined product set allows brands to learn and adjust before scaling the hybrid model further.

From the beginning, clear structures are essential. Product categories, price segments, or marketplaces should be clearly assigned to each channel to avoid overlap and conflicts.

Data management and content processes should be standardized wherever possible and ideally coordinated through a single source of truth. Pricing strategies need to be aligned across channels and communicated transparently within the organization. Clear ownership between marketing, sales, and logistics is equally important. When both models are active, profitability should be tracked and actively managed by channel to ensure the hybrid setup delivers the intended benefits.

4 Practical Recommendations for Getting Started

01.

Start small and scale deliberately

Introducing a hybrid model should be done step by step. Moving all products or markets at once increases risk and complexity. A phased approach makes it easier to understand what works best for your brand. There is no universal hybrid setup that fits every business.

02.

Assess whether your organization is ready

Hybrid models work best for brands with a clearly structured assortment and sufficient internal resources. In these cases, a long-term product allocation by channel should be defined and reviewed regularly.

03.

Establish processes early on

Clear processes are essential from the start. This includes a defined cross-channel pricing strategy and regular reconciliation of Vendor and Seller data to ensure consistency and transparency.

04.

Plan for higher data and operational effort

Managing data across both models requires time and expertise, especially in the early stages. Tools like CATAPULT, as well as experienced Amazon agencies, can help reduce complexity and support effective decision-making as the hybrid setup grows.

The Hybrid Model is Here to Stay

The hybrid model is increasingly becoming the norm for brands selling on Amazon. It offers greater independence, more flexibility, and a better balance between scale and control. For Vendors focused on long-term growth, regularly reviewing and refining their hybrid strategy is essential to stay competitive and protect profitability. Brands that have not yet explored a hybrid setup can use this as a starting point for their strategic planning in 2026.

About the author

Benjamin Weyrich

He is the Founder and Managing Director of CATAPULT. With around ten years of experience in ecommerce and business intelligence, he focuses on strategic consulting for global brands aiming to strengthen their market position both on and beyond Amazon. Through his deep expertise, he helps companies make data-driven decisions and scale their growth across digital channels.