MKTG 556 | Session 5 | The One-Party Versus Third-Party Platform Conundrum: How Can Brands Thrive?

MKTG 556 | Session 5 | The One-Party Versus Third-Party Platform Conundrum: How Can Brands Thrive? - 2023 Zhiling Bei and Katrijn Gielens Introduction The study explores how brands can navigate governance decisions when selling through online platforms such as Amazon, JD.com, and Tmall. Specifically, the authors compare one-party (1P) models, where brands wholesale to the platform, versus third-party (3P) models, where brands sell directly to consumers on the platform. Using data from nearly 2,000 brands, they find that 1P operations generally reduce market share, while 3P operations increase it, though outcomes are contingent on brand characteristics such as pricing, trust, and product assortment.