The standard split
Core, high-volume SKUs stay on 1P — Amazon's fulfillment network, the ships from and sold by Amazon badge, and the simplicity of one PO process per quarter. New launches, bundles, variety packs, seasonal SKUs, and higher-margin products run on 3P — where you keep pricing authority, margin clarity, and the data Amazon doesn't share with you on the 1P side.
What it actually costs to run
The hybrid model is not free. Running both means separate teams, separate inventory planning, separate ASIN allocation rules, and a cross-functional decision layer to prevent listing conflicts. Brands that run hybrid out of the same three-person ops team usually create more stockouts and pricing inconsistencies than they solve. The brands that run it well treat it as a portfolio decision — which SKUs serve which commercial objective — not a logistics shortcut.
Why it's the default now
In late 2024, Amazon began terminating Vendor Central accounts for brands generating less than $5–10M in annual sales. The practical floor for staying on 1P is rising. For brands that qualify to remain, hybrid is the only model that preserves the scale benefits of 1P while building optionality through 3P. For brands pushed off 1P, the hybrid question is moot — Seller Central is the only path back.