Amazon Seller Performance in 2025: Financial Insights and Platform Comparison
Amazon Seller Statistics (2025 U.S. Market)
Amazon’s third-party marketplace dominates U.S. e-commerce and offers robust financial opportunities for sellers. Here are key statistics on Amazon sellers’ performance in 2025:
- Sales Volume & Revenue: Amazon sellers range from small side hustles (~$500/month) to large businesses ($250,000+/month) in sales. New sellers earn about $42,000 per year on average. Roughly 30% of Amazon sellers generate over $5,000 in sales per month, and about 19% exceed $10,000/month in sales. This shows a significant portion are able to reach six-figure annual revenues.
- Profitability & Margins: Nearly 90% of Amazon sellers are profitable as of early 2023 and a majority become profitable within the first year of starting their Amazon business (58% hit profitability in <12 months). Typical net profit margins range ~15–20% for Amazon sellers – meaning for every $100 in sales, sellers keep $15–$20 in profit. In fact, about 73% of sellers have profit margins above 10% and over 35% enjoy margins above 20%, which is considered excellent and higher than many small retail businesses’ average 7–10% margin. This healthy profitability is a strong indicator of Amazon’s financial potential for entrepreneurs.
- Growth Trajectory: Sellers often see steady sales growth on Amazon’s platform. Most sellers (89%) reported year-over-year net income growth going into 2023, reflecting the overall expansion of e-commerce and Amazon’s customer base. Amazon’s marketplace itself continues to grow rapidly – in Q4 2024, 61% of all Amazon units sold were from third-party sellers (up from ~50% just a few years ago). Many sellers plan to keep expanding: for example, 69% of Amazon sellers intend to add new products to their lineup, fueling further sales growth. Amazon’s momentum translates into more opportunity for individual sellers each year.
- Fulfillment Method (FBA vs. FBM): 82% of Amazon sellers use FBA (Fulfillment by Amazon), relying on Amazon’s warehouses and Prime shipping to handle orders. This strategy pays off – on average, FBA sellers see 20–25% higher sales than those fulfilling orders themselves (FBM), thanks to faster shipping and Prime eligibility attracting more buyers. FBA can also reduce the workload on sellers (Amazon handles storage, shipping, and customer service), allowing focus on growth. The remaining sellers who use FBM often do so for specialized or larger items, but they may miss out on some sales momentum without the Prime badge.
- Business Models (Private Label, Wholesale, etc.): Amazon accommodates various seller models:
- Private Label – the most popular model, used by 54% of Amazon sellers. Sellers create their own brand/products to sell on Amazon. This often yields strong brand value and control over margins.
- Wholesale – about 26% of sellers resell products from other brands in bulk. This can be lucrative but typically has slightly lower margins than private label.
- Retail/Online Arbitrage – around 25% of sellers do retail arbitrage (buying clearance or discount products in-store to resell) and 24% do online arbitrage. These methods have lower startup costs, though scaling can be labor-intensive.
- Dropshipping – roughly 17% of sellers use dropshipping, where the supplier ships directly to customers. With effective marketing, dropshippers can earn an estimated $2,500–$5,000 in monthly profits on Amazon, though sellers must ensure reliable suppliers.
- Others – niche models like handmade goods (~8% of sellers) also thrive in Amazon’s vast marketplace.
Despite different approaches, all these seller types benefit from Amazon’s huge customer traffic and trust, which lowers the barrier to making sales compared to starting on a standalone website. The data shows that whether one does private label or reselling, leveraging Amazon’s platform can quickly lead to real revenue and profit.
Quick stats recap: Average new seller ~$40K/year, majority profitable within 12 months, ~15–20% typical profit margins, 82% use FBA for ~20% higher sales, Amazon third-party sales growing ~10%+ YoY.
Amazon vs. Other E-Commerce Platforms (Shopify, eBay, Walmart)
How do Amazon sellers financially compare to those using other major e-commerce platforms? Below is a comparison of key metrics – market share, seller profitability, and growth – between Amazon and other platforms in the U.S.:
| Platform | US E-Commerce Market Share | Seller Profitability & Margins | Growth Trends (Recent) |
| Amazon | ~38% of online sales
(largest) |
~15–20% avg. net margin
; ~90% of sellers profitable |
~10% YoY overall e-com growth; third-party order volume +65% YoY
(2023) |
| Shopify
(all independent stores) |
~5–6% of online sales
(aggregate of millions of stores) |
Varies widely – profitability depends on each store’s marketing success (no built-in customer base) | ~19% YoY order volume growth in 2023 for Shopify merchants (strong, but far below Amazon’s 65%) |
| Walmart
(Marketplace) |
~6% of online sales
(2nd largest single retailer online) |
Competitive 15% referral fees similar to Amazon; many Walmart.com sellers are profitable, but the smaller customer pool means lower absolute sales for most vs. Amazon | ~20% YoY e-commerce growth (est.) – Walmart added +$55B in online sales 2019–2023, expanding fast but still much smaller than Amazon’s ~$142B growth in same period |
| eBay | ~3–4% of online sales
(declining share) |
Many casual sellers; margins ~10–15% typical. Lower traffic and an auction-driven model can limit pricing power and profit for new sellers. | ~0% growth – eBay’s $73B GMV was flat in 2023
(market share has stagnated as buyers and sellers shift to Amazon and others) |
Market Share: Amazon is the clear leader with roughly 37–40% of U.S. e-commerce sales giving Amazon sellers access to the nation’s largest online customer base. Shopify-powered stores collectively make up about 5–6% of U.S. e-commerce, while Walmart’s online sales are around 6%, eBay, once a major player, now accounts for only ~3–4%. This means products on Amazon are exposed to far more potential buyers at any given time, directly translating into higher sales potential. For example, Amazon has 180+ million Prime members in the U.S. alone (who tend to shop frequently for that “free shipping”), whereas eBay’s entire global active buyer base is ~133 million. The sheer scale of Amazon’s audience is a huge advantage that no standalone Shopify store or smaller marketplace can easily match.
Seller Profitability: Amazon’s ecosystem supports robust profitability for sellers, backed by its high traffic and efficient services. ~89% of Amazon sellers are profitable and over half earn margins above 15%. This outperforms anecdotal reports from Shopify store owners – launching a Shopify store often requires heavy marketing spend (Facebook/Google ads, social media) to attract traffic, which can eat into margins. There isn’t a centralized data source for average Shopify seller profits (since each store is independent), but the lack of an instant customer base means many new Shopify entrepreneurs struggle to break even in the first year.
By contrast, Amazon sellers benefit from built-in demand on day one. Similarly, eBay sellers face a smaller buyer pool and often lower selling prices (many used or auctioned items), which can result in lower profits per item. Walmart’s marketplace is growing and can be profitable (it has lower seller fees on some categories), but it lacks the volume of Amazon – Walmart’s third-party marketplace sales are estimated at only ~$10 billion (about one-tenth of Amazon’s)
In short, Amazon provides the greatest chance for a new seller to quickly achieve significant sales and healthy profit margins, thanks to its scale and infrastructure.
Growth Trends: The growth trajectories also favor Amazon:
- Amazon’s third-party sales are surging. Recent data showed 65% year-over-year growth in order volume for Amazon’s 3P sellers, an enormous jump, far outpacing overall e-commerce growth. Even if that figure includes a particular season or data set, it underscores Amazon’s accelerating marketplace.
By comparison, Shopify merchants saw ~19% YoY growth in orders – not bad, but only a fraction of Amazon’s leap. Walmart’s online sales have been growing ~20-30% annually in recent years (helping it climb to #2 in share), but again from a much smaller base. eBay’s growth has flatlined, with 0–3% annual change and even declines in active users.
For a new seller, this means Amazon is a fast-expanding pie – there are more customers each year on Amazon Marketplace, whereas eBay’s pie is not really growing. Shopify’s growth, while solid, still relies on each merchant’s ability to capture a piece of the market through marketing. Amazon’s growth is platform-driven – it’s pulling in more shoppers by itself, which lifts all sellers on Amazon organically.
Market Share & Growth Chart (Textual):
- Amazon: ██████████████████████████████████████████████████████████████████ ~40% share, +10% YoY (3P +65% YoY)
- Walmart: █████████ ~6% share, ~+20% YoY
- Shopify (all stores): █████████ ~6% share, +19% YoY
- eBay: ██████ ~4% share, ~0% YoY
(The bars above illustrate relative market share; Amazon’s bar is vastly longer, reflecting its outsized presence.)
Overall, Amazon outshines its competitors in both current market dominance and growth momentum. This results in better average outcomes for Amazon sellers: higher sales volumes and a greater likelihood of building a profitable business.
Why Starting an Amazon Business Makes Financial Sense
Data-driven insights strongly suggest Amazon is the premier platform to start an ecommerce business in 2025. Here’s why the financial benefits and potential on Amazon stand out:
- Unmatched Customer Access: Amazon brings hundreds of millions of shoppers to your listings. With ~180 million U.S. Prime members in 2024 and millions more non-Prime customers, an Amazon seller instantly taps into a huge ready-to-buy audience. You don’t need to pay for traffic the way you would for a new Shopify store – Amazon’s traffic is a built-in asset. More eyeballs on your products means faster sales growth.
- High Market Share = High Sales Potential: Amazon accounts for about 38% of all online retail sales in the U.S.. In practical terms, this large market share means Amazon can deliver far more sales volume than other platforms. Many sellers reach five or six figures in monthly revenue on Amazon, levels that would be challenging to achieve as quickly on eBay or a standalone website. Amazon’s share is still growing, which signals future-proof opportunity – you’re aligning with the market leader whose pie is getting bigger.
- Proven Profitability: The majority of Amazon sellers turn a profit, and they do so quickly. With 58% of sellers profitable within a year, Amazon has a shorter runway to success compared to many traditional businesses. Net profit margins around 15–20% are common on Amazon, which is higher than many brick-and-mortar retailers.
This means you keep a healthy portion of each sale. Amazon’s efficient fulfillment (especially via FBA) and trusted shopping experience drive conversion rates that help sustain these strong margins. In short, Amazon sellers are making real money – nearly three-quarters earn over 10% profit, and over a third exceed 20%. These profits can be reinvested to scale the business further.
- Robust Growth and Scalability: Amazon’s ecosystem enables you to scale up rapidly. You can launch new products to the same massive audience and leverage tools like Amazon PPC advertising to boost sales. The platform’s overall growth (double-digit increases in marketplace sales year-over-year) means new sellers aren’t just taking a slice of a fixed pie – the pie is expanding.
For instance, when third-party seller orders jumped 65% in a year, it wasn’t only a win for Amazon; it meant more revenue flowing to sellers. No other e-commerce channel is growing at this pace. By starting an Amazon business, you ride on Amazon’s growth trajectory, which can catapult a small startup into a multi-million dollar brand within a few years. Many private-label Amazon brands have scaled and even been acquired for substantial sums (a testament to the value an Amazon business can build).
Competitive Advantage over Other Platforms: Choosing Amazon gives you advantages that a new Shopify store or an eBay listing simply can’t match:
-
- Trust & Conversion: Amazon’s site has enormous trust and a Prime-ready customer base. Shoppers come ready to buy, yielding conversion rates up to 3–5x higher than on independent e-commerce sites. This means your marketing dollars (if any) go further on Amazon.
- Fulfillment & Logistics: With FBA, Amazon handles warehousing and shipping with high efficiency. This lowers your operational burden and cost. Competing platforms don’t offer an equivalent to FBA at scale – for example, Shopify sellers must arrange their own shipping or use 3PLs, which can be costly and complex.
- Multi-Channel Expansion: Success on Amazon can be a springboard to expand to other channels (many Amazon sellers later launch their own Shopify store or list on Walmart once they have traction). 61% of Amazon sellers were also selling on other platforms, often after establishing themselves on Amazon. In contrast, starting on a smaller platform first might not generate enough cash flow to expand. Amazon can be the cornerstone of a multi-platform strategy, providing the revenue and customer base to grow further.
In summary, Amazon offers an unparalleled combination of high traffic, market dominance, strong profit margins, and growth momentum. The data shows Amazon sellers are achieving significant revenue and profits, often outperforming those on Shopify, eBay, or Walmart in both scale and speed. For anyone considering starting an ecommerce business, the financial upside of Amazon – from a quicker path to profitability to access to the lion’s share of online shoppers – makes it a compelling choice.
By using Amazon’s platform in 2025, you position yourself to reap the rewards of the largest e-commerce marketplace in the U.S., tap into its ongoing growth, and build a business with substantial income potential backed by real statistics and success stories. The numbers speak clearly: if you want the best shot at ecommerce success, Amazon is the place to be. It’s a data-backed opportunity to launch a profitable venture with a relatively low barrier to entry and a high ceiling for growth.
Bookmark the Elite Automation blog for critical ecommerce and Amazon seller news, updates, and state of the industry reports.
Sources:
- Jungle Scout, “2024 State of the Amazon Seller” – Survey of ~2,000 Amazon sellers (Dec 2023). Key findings on seller revenue, profit margins, and multi-channel selling.
gofbahub.com
junglescout.com - AdNabu Blog, “65 Amazon Seller Statistics You Must Know for 2025.” Compilation of Amazon marketplace data (2024).
blog.adnabu.com
Sellerassistant.app - OABeans, “Amazon Sellers Facts and Statistics You Need to Know in 2025.” Insights on average seller earnings and sales ranges.
oabeans.com - Jungle Scout, “How Much Do Amazon Sellers Make? (2024 Update)” – Amazon seller income distribution (monthly sales brackets, time to profitability).
junglescout.com
gofbahub.com - Multichannel Merchant, “Nearly 90% of Amazon Sellers Report Profitability.” (Jan 2023)
myemail.constantcontact.com - Business of Apps, “eBay Revenue and Usage Statistics (2025)” – eBay GMV and growth figures.
businessofapps.com - Statista / eMarketer – U.S. E-commerce Market Share by Company (2022–2024)
sellerscommerce.com
bloggingwizard.com - Extensiv Market Insights (via GlobeNewswire), “Amazon Order Volumes Spike 65% YoY…” (Jan 18, 2024)
retaildive.com - Digital Commerce 360, “Amazon vs. Walmart: Ecommerce Comparison” (2023) – U.S. sales growth 2019–2023 for Amazon vs Walmart.
digitalcommerce360.com - Yaguara, “Amazon Prime Statistics 2025.” Number of Prime subscribers (US).
yaguara.co
