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eCommerce glossary

All the terminology you’ll ever need, together in one place. We can even let you know when new terms are added.

Third-Party Seller

A third-party seller is an independent seller who offers a variety of new and used products to customers of other businesses. For instance, a third-party seller may purchase goods from a manufacturer and sell those products on the Amazon marketplace. When someone orders their product, they will ship it directly from their business location. Amazon won’t be involved in the process.

Third-party sellers typically handle customer service for the goods shipped from their own warehouse. On marketplaces, their products are displayed as “sold by [merchant] and fulfilled by [merchant].” Anyone can become a third party seller by fulfilling the criteria set by a marketplace. Sellers need to have a business email address, tax ID, phone number, and a bank account to receive proceeds from their sales.

Depending on the marketplace’s profile, anyone from a crafts enthusiast to a distributor of international products can work as a third party seller on the platform. Besides exposure to marketplace customers, you will also get the opportunity to use different tools for marketing your products. You’ll also be able to price in real-time versus brands offering the same products, though you’ll need to keep your prices competitive to ensure your listings appear in front of marketplace visitors.

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