Amazon offers you various sales approaches – Private Label, Vendor Program, and hybrid models. None of these is categorically the best. The key lies in the combination: What Valuezon defines as a tri-hybrid sales strategy strategically merges these approaches with a distributor or broker, unlocking your full growth potential on Amazon.
Broker or Distributor—what exactly is the difference?
A broker acts as an intermediary without owning products—a distributor buys, stores, and ships goods. Valuezon combines both models as a DistriBroker: You get predictable cash flow, complete logistics, and optimized content from a single source.
In traditional trading there is a fundamental difference between a broker and a distributor.
Broker
A broker does not own products but acts as an intermediary between brands and retailers. They help place products in retail and, through strategic and sales-promoting measures—such as shelf placement or display set-ups—increase sales. Together with brands, they develop sales goals and actively work on achieving them. Their compensation lies at around 5–8% and is performance-based.
Distributor
A distributor purchases goods and manages them in their own warehouses. They ship products through a logistics network to their respective points of sale, such as retail stores. Distributors typically add a 15–20% markup to the purchase price when reselling products. They maintain and build relationships with retail networks and sales channels to maximize product availability.
In the following section, we’ll look at how these roles function in e-commerce—especially on Amazon—and to what extent their tasks online resemble traditional offline activities.
What does an Amazon broker do?
A traditional broker and an Amazon broker share many similarities, although they operate in different environments. Both do not own the products themselves but use their networks and platforms to successfully place products. While the traditional broker places products in retail stores, the Amazon broker helps position products optimally on the marketplace—for example, through keyword optimization and PPC campaigns. Compensation is often performance-based, which motivates them to continuously work on improving sales performance, visibility, and sales.
How does an Amazon distributor work?
An Amazon distributor plays a central role in the sales and logistics of products on the marketplace. Unlike a broker, the distributor purchases products directly from manufacturers or brands and stores them in their own warehouses. They handle the entire logistics chain including warehousing, packaging, and shipping products to Amazon warehouses or directly to customers. Distributors are also responsible for managing inventory and ensuring products are always available so stockouts are avoided. Compensation usually takes the form of a 15–20% markup on the purchase price, covering the costs of storage and logistics.
How Valuezon as a DistriBroker combines both approaches
At Valuezon, we combine the advantages of a traditional distributor and broker in a unique way that provides brands with a comprehensive solution for selling on Amazon, without having to take action themselves. By purchasing products directly from the brand, we create predictable cash flow that ensures financial security. In addition, we handle the entire logistics process, including delivery and shipping to Amazon, greatly reducing the effort and costs for brands.
To maximize visibility and conversion, we optimize every product listing with high-quality images and SEO-optimized content. Our team also handles all PPC marketing campaigns, sales processing, and customer service—so you benefit from increased efficiency and higher sales without using your own resources.
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Why multiple sales options in parallel on Amazon can make sense
Amazon is becoming increasingly complex and multi-layered, whether you operate as a Vendor, sell products yourself, or use a combination of both. There is no universally best approach—each brand must define its own optimal strategy. In this environment, it makes sense to use multiple sales options in parallel to remain flexible to market changes. Working with a DistriBroker like Valuezon can offer a variety of benefits.
Each of the three sales approaches—Vendor, Seller, and Hybrid—offers different advantages and challenges on Amazon. Below, we’ll look at common examples of how such a partnership can be beneficial in each scenario and what growth levers it contains.
You are a Vendor
Problem: Amazon stops placing reorders
If Amazon decides to stop reordering certain products from you, they often lose visibility on the marketplace—even if they have gained many positive reviews and high customer satisfaction over the years. The product will not be available once the inventory is sold out.
Solution
Instead of removing the product from your portfolio entirely, you can sell it to a distribution partner. This partner will take over warehousing and sell the remaining stock. As a result, the product remains visible on Amazon and can continue to generate sales, even after Amazon has stopped reordering and it has disappeared from the Buy Box. Your existing customers still have access to the product, and you benefit from ongoing revenue.
Problem: Amazon limits itself to selected products for sales
Sometimes Amazon decides not to continue selling certain products due to low sales or bulky sizes, or not to list them at all. This can be frustrating, especially if you want to offer a broader product range or test new products.
Solution
With a distribution partner like a DistriBroker, you can still sell and test any product on Amazon. Distributors often have their own logistics solutions and are able to ship even bulky products using the Fulfilled by Merchant (FBM) service. This keeps you flexible and allows you to test products with low sales in small quantities, gain valuable insights into market demand, and tap into new sources of revenue – without being fully dependent on Amazon’s selection criteria.
Problem: You want to improve your margins
If Amazon sells your product at a lower price than you would like, this can make it difficult to maintain your brand image and can reduce your margins. Often, you could improve both your brand image and your margins by raising the price.
Solution
In this case, you can restrict sales to Amazon and instead have your product sold through a third-party provider such as a DistriBroker. The third party also enhances your offer quality with appealing imagery and optimized SEO texts. These measures increase the perceived quality of your product, justify higher prices – and at the same time lead to a better brand image and a significant increase in your sales margins.
You are a retailer
Problem: You want to sell internationally
You are already selling your products very successfully in Germany and would now like to expand your business beyond national borders to test whether sales in other countries are worthwhile. To do this, tax registrations are required in each relevant country, which can be both time-consuming and expensive.
Solution
With a distribution partner such as a DistriBroker, you can use their already established tax infrastructure. This saves you a lot of time and considerable expenses, as you do not have to handle your own tax registrations. It enables you to quickly test your products internationally with minimal risks – and to access new markets without high initial investments.
Problem: Account backup as protection
It’s not uncommon for retailers to have their Amazon account suspended or temporarily closed – whether due to repeated violations of Amazon’s guidelines or suspicious account activity. The result is immediate loss of sales, falling rankings, and frustrated customers who can no longer access the desired products.
Solution
A backup option through a distribution partner offers the perfect solution here until your account is restored. The partner can list your products in parallel via their own account to ensure that all your products remain available to your customers. This minimizes revenue loss and ensures that your customers continue to be served seamlessly, even if your main account is temporarily offline.
You’re selling hybrid (Vendor & Seller)
Problem: Testing different price points
If you are active as both a Vendor and Seller on Amazon at the same time, you may encounter the issue of price parity. Amazon often requires products to be offered at a consistent or lower price, which restricts your flexibility to test different price points. This limitation can make price optimization difficult and prevent you from adapting to market changes.
Solution
Working with a third party such as a DistriBroker can help here. Instead of offering your products through both your Vendor and Seller accounts, you can have certain products sold through the third party. This allows you to test different price points without being directly affected by Amazon’s price parity requirements. The third party can flexibly adjust pricing, providing you with valuable insights into the optimal pricing strategy without impacting your own accounts.
Problem: You want to discontinue your own sales on Amazon
Some retailers want to withdraw from actively selling on Amazon to focus again on their core business or other marketplaces. However, it would be a pity to lose the accumulated reviews and established presence on Amazon, as these have built valuable customer trust and contribute to your product’s visibility.
Solution
Working together with a broker or distributor can be ideal in this situation. You can hand over your Amazon sales to the distribution partner, who will continue and manage your existing product listings. This way, your reviews remain intact, and the product stays available on Amazon without you needing to manage the sales process yourself. The broker or distributor takes care of logistics, customer support, and marketing activities, allowing you to focus on your core business or other sales channels.
Reasons to work with a distributor/broker
Working with a distributor or broker offers much more than just operational support. One important reason is risk diversification. You can focus on your core business while your partner continuously builds your presence on Amazon. Sales partners also make it easy to enter complex markets like international Amazon platforms, without large investments in logistics or legal and tax registrations. Additionally, an experienced partner can help strategically to revitalize underperforming products or target new price points to make your business more flexible and profitable.
Advantages at a glance:
- Risk diversification by outsourcing sales and logistics
- Easy market entry into international markets without additional investments
- Flexibility when launching and testing new products and price points
- Backup option in case of account suspensions or delivery issues
- Focus on your core business while the partner takes over Amazon sales
- Experience in Amazon marketplace strategies, optimized logistics, and sales
- SEO optimization and improved content strategies for greater visibility
- PPC campaign management for effective advertising and increasing traffic
- No need for your own warehousing or logistics management
- Greater control over prices and margins through third-party sales
- Revitalization of poorly performing products through strategic measures
- Detailed analyses to improve sales performance and conversion rates
How to Find the Right Partner
Finding the right partner requires careful analysis and research. It’s important to choose a partner who not only has solid experience in e-commerce and on Amazon but also a deep understanding of your industry and product range. Make sure the potential partner offers comprehensive services—such as marketing, SEO analyses, and customer support. These aspects are crucial to optimally position your products and ensure customer satisfaction. Check references and client reviews to understand the partner’s track record. A clear communication channel and a dedicated team are also essential for a successful collaboration.
What Sets Valuezon Apart as a Sales Partner
At Valuezon, we support not only large, well-known brands but also numerous mid-sized companies in optimizing their business on Amazon. As a full-service consultancy, we cover every aspect of the Amazon sales value chain. From SEO analyses and listing optimization to creating image content and comprehensive marketing measures—we have specialists in every area on our team. As a distributor and broker, we use these internal resources to sell our clients’ products through our own account as well. In addition to this bundled expertise, we have developed our own performance tool over the years that helps us understand the Amazon algorithm and maximize product visibility, which directly leads to higher sales numbers. Our many years of experience and in-depth expertise make us a sales partner who ideally combines the benefits of a distributor and a broker.
Conclusion
It can be extremely advantageous to combine multiple approaches on Amazon to maximize market presence and respond flexibly to changes. At the same time, it makes sense to work with a distributor or broker like Valuezon, even if you already have your own strategies. This allows you to benefit from additional expertise, optimized processes, and an expanded infrastructure, ultimately leading to more sales and long-term success.
FAQ
What is a Tri-Hybrid Sales Strategy on Amazon?
A Tri-Hybrid sales strategy combines the Vendor, Seller, and Hybrid approaches on Amazon with the collaboration of a third-party. Brands use different sales models simultaneously to increase their reach, minimize market risks, and respond flexibly to market changes. This allows them to optimally leverage the strengths of each model and fully exploit sales potential.
Why should I work with a distributor or broker?
A distributor or broker gives you access to additional resources and expertise that are crucial for success on Amazon. You can focus on your core business while the partner takes over logistics, marketing, SEO, customer service, and more—which increases your sales and the visibility of your products.
What are the benefits of combining different sales approaches on Amazon?
By combining different sales approaches, you can expand your market presence and respond flexibly to market changes. This gives you the opportunity to test different price points, optimize margins, and take advantage of market opportunities more quickly—while at the same time reducing the risks associated with relying on a single sales strategy.
How does Valuezon help optimize my Amazon business?
Valuezon offers comprehensive services, from SEO analyses and listing optimizations to marketing strategies and customer service. With an experienced team and a proprietary performance tool, Valuezon helps you understand the Amazon algorithm and maximize the visibility of your products, leading to sustainable sales growth.
Can I benefit from a DistriBroker if I already sell on Amazon?
Yes, even if you are already active on Amazon, you can benefit from working with a DistriBroker like Valuezon. The partner provides additional expertise and resources, optimizes existing processes, and supports the expansion of your sales strategies—which increases efficiency and opens up new revenue opportunities.
