The world of retail has never been more dynamic - or more complex. For consumer brands, the question is no longer whether to sell through retailers or online marketplaces. The real challenge lies in deciding which routes to prioritize, how to balance them, and how to adapt as the landscape evolves.

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From traditional wholesale partnerships to fast-moving online marketplaces, each model offers its own set of opportunities and challenges. And while it’s tempting to view one channel as the “right” answer, the reality is that building a resilient retail strategy often requires blending multiple approaches.

At eBrands, we’ve seen firsthand how brands can thrive when they strike the right balance. Let’s take a closer look at the five dominant retail models today - and explore the trade-offs that come with each.

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Wholesale (1P): The Traditional Powerhouse

For decades, wholesale has been the bedrock of consumer goods retail. In this model, brands sell directly to retailers such as Walmart or Dick’s Sporting Goods, who then own the inventory and sell it on to consumers.

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The advantages are clear: wholesale delivers scale and visibility, often through established retail giants. Having products on shelves builds trust with consumers and ensures retailers take on the logistical and customer-facing burdens. But wholesale also comes with limitations. Margins are slimmer, brands give up end-customer data, and negotiating strong contracts can be make-or-break.

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Wholesale remains powerful - but it’s rarely the only path forward anymore.

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Dropship (1P): Agility Meets Exposure

Dropshipping has emerged as a popular middle ground. Retailers like Target, Wayfair, or Overstock list a brand’s products online, but fulfillment is handled by the brand itself. This allows retailers to broaden their digital assortment without tying up warehouse space, while brands gain exposure to massive audiences without fully committing to wholesale deals.

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The flexibility of dropshipping is attractive, especially for testing new products or categories. It reduces inventory risk for both sides. Yet, with flexibility comes responsibility: brands must execute flawlessly on shipping speed, accuracy, and customer experience. In this model, performance metrics can make or break a partnership.

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Vendor Self Service (3P): The Marketplace Engine

If wholesale and dropship are about working with retailers, vendor self-service marketplaces flip the script. Platforms like Amazon Seller Central empower brands to take control - managing listings, pricing, and inventory directly.

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The upside is obvious: direct access to vast pools of consumer demand, with the ability to scale globally at speed. Brands retain more control over pricing and product presentation, while benefiting from the infrastructure marketplaces provide.

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But this freedom comes at a cost. Competition is fierce, and the operational demands are significant. Success requires constant optimization of content, advertising, and logistics. For many brands, this model is both an opportunity and a test of operational maturity.

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Private Marketplaces (3P): Selective Partnerships

Sitting between wholesale and public marketplaces are private, curated platforms like Decathlon, Galaxus, or The Home Depot. These marketplaces are selective in who they onboard, creating a more controlled environment for both retailers and brands.

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The benefits are clear: association with trusted retailers, better category alignment, and a chance to stand out more than in a crowded public marketplace. For many brands, private marketplaces serve as a credibility boost and a bridge into larger retail ecosystems.

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The trade-off, however, is scalability. Onboarding can be time-intensive, and the retailer retains a say in assortment and logistics. Brands often find private marketplaces work best as a complement to broader strategies, not as a standalone solution.

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Public Marketplaces (3P): Scale Without Borders

Finally, there are the open marketplaces - Amazon, Walmart Marketplace, Bol.com, Etsy - where virtually any qualified seller can list products. These platforms are the ultimate gateway to scale, offering global reach and enormous volumes of potential customers.

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Public marketplaces provide flexibility to test products, launch bundles, or enter new regions. For brands with the right infrastructure, they can be engines of growth. But they are also the most competitive environments, where price wars are common and visibility requires constant investment in advertising and brand-building.

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Margins can be thin, and customer relationships are often owned by the platform rather than the brand. Still, few brands can afford to ignore these marketplaces if they want to compete at scale.

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Pricing: The Invisible Thread Across Channels

No matter which retail routes a brand chooses, one challenge runs through them all: pricing. What looks like a simple number on a product page or shelf tag is, in reality, a highly strategic lever that determines both competitiveness and profitability.

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Wholesale agreements often lock brands into set margins, while marketplaces demand constant agility in the face of price-driven competition. D2C channels bring the promise of higher margins but also the pressure to keep pricing consistent with other outlets. Striking the right balance is essential not only for protecting margins but also for avoiding channel conflict - where one partner undercuts another, eroding trust and long-term growth potential.

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The complexity of pricing at scale means brands can’t rely on manual adjustments or gut instinct. Centralized pricing engines, ERP and CRM integrations, and real-time analytics have become critical tools. These technologies provide visibility into how pricing decisions ripple across geographies and channels, enabling brands to adjust dynamically without losing control. In today’s retail landscape, robust infrastructure is what separates brands that scale profitably from those that simply chase volume.

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The Balancing Act

So, where should a brand focus? The answer lies in building a diversified channel mix - one that maximizes reach while protecting profitability. Wholesale provides stability, dropship offers flexibility, private marketplaces deliver credibility, vendor self-service brings control, and public marketplaces unlock scale. Pricing strategy ties it all together, ensuring that growth doesn’t come at the cost of margins or relationships.

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As Masa Karjanlahti, Commercial Director at eBrands, explains:‍

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"There’s no one-size-fits-all model in retail today. The winning formula is about diversification - building a channel mix that maximizes reach while staying profitable. At eBrands, we help brands navigate this complexity, providing expertise, infrastructure, and technology needed to manage it effectively, and scale across the right partners and platforms."

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In practice, the best strategies blend these models based on the brand’s stage, category, and long-term goals.

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How eBrands Can Help

Navigating the retail landscape is no small feat. Each model requires different capabilities - be it wholesale negotiation, logistics execution, pricing infrastructure, or marketplace management. That’s where eBrands steps in.

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Our expertise lies in taking brands across channels, tailoring strategies to meet both immediate and long-term growth objectives. Whether it’s securing shelf space in big-box retailers, scaling dropship partnerships, optimizing pricing engines, or driving marketplace performance, we help brands expand globally without losing sight of profitability.

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You can learn more about our approach on our Sales Channels page.

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Retail is evolving. The brands that win aren’t the ones that choose a single path - they’re the ones that know how to walk them all.

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