Fewer Sellers, More Business: Amazon Presents Room for Entrepreneurs

Global marketplaces for Amazon sellers are currently witnessing a drop in competition compared to 2021, with an over 30% surge in traffic for every active dealer. Even with the annual addition of nearly a million new entrants, the total count of active sellers came down from its prior 2.4 million to less than 1.9 million within a four-year span, implying an expanded horizon for those who can deftly explore the constantly changing landscape of Amazon.

The recent study by Marketplace Pulse revealed an intriguing trend wherein, despite steady traffic since 2021, the decline in active sellers has led to an elevation in the monthly traffic-to-seller ratio. It has jumped from 2,162 vistas per seller in 2021 to 2,837 vistas per seller in 2025, marking a 31% progression.

In this interval, Amazon experienced a 36% increment in their overall revenue, which hit $638 billion in 2024 from a previous figure of $470 billion in 2021. Although Amazon does not disclose the returns of third-party sellers, it does disseminate data pertaining to their share in overall units sold. Notably, this percentage touched an all-time apex of 62% in Q4 2024, escalating from 56% in Q4 2021.

This concurrent trend of a flourishing share in a growing revenue stream and dwindling number of sellers suggests that the existing sellers are harnessing more business opportunities. However, they are also faced with a paradox. Despite more dealers setting their stalls, the number of those remaining active, determined by at least one feedback received in the prior year, is less.

The Amazon marketplace shows signs of maturity with more than 60% of the top 10,000 sellers having registered before 2019. This serves as a testimony to the fact that sustainability is the most influential success factor. The U.S. continues to be the most coveted marketplace given its total traffic and sales volume with more than 2.45 billion monthly visits, however, lesser-visited marketplaces now showcase more favorable traffic-to-seller ratios.

The highest ratio of visits per seller is found in Saudi Arabia’s marketplace standing at 8,228, followed by South Africa at 8,065 and then Singapore registering 4,531. Nonetheless, these platforms are marked by comparatively low overall traffic, which inevitably caps the peak revenue potential and curtails the diversity in niche possibilities.

In the backdrop of shifting competition, sellers are also grappling with their own set of challenges, chief among which are Amazon’s fees that have crossed the 50% mark of the revenue for several sellers. The landscape is also witnessing a surge in market share domination by Chinese sellers, now accounting for over 50% among top Amazon sellers.

Increasing direct-to-consumer sales by manufacturers has applied a tangible upward pressure on pricing, inevitably making the selling platform more contingent. Adding to these adversities for sellers are the increasing intricacies associated with regulation and unpredictability related to tariffs.

However, the evidence signifies that lucrative business opportunities are burgeoning for sellers who manage to comprehend and strategically navigate through the complexities of Amazon’s environment. The rise in traffic per seller has been accompanied by an increase in the portion of third-party sales, hinting at an elevated reward potential for successful sellers compared to four years ago.

That being said, recent entrants can’t take full advantage of many benefits once enjoyed and largely milked by their older counterparts, such as the erstwhile permissible strategies of granting freebies in return for reviews. However, the decreasing competition offers a significant off-set to this challenge of a maturing Amazon marketplace.

Rather than a hurdle, this situation could be perceived as an opportunity for forward-thinking sellers who can leverage the changes to their advantage. With a reduction in competition and an increase in traffic per seller, the landscape is ripe for those who can adapt and innovate.

Indubitably, the marketplace of Amazon is in a state of flux with a mix of opportunities and challenges. It’s a situation where the knowledge of how Amazon operates, combined with robust strategies, would be the winning formula. Striking a balance between understanding the marketplace and its shifts, identifying potential incentives, and overcoming challenges would determine a seller’s success.

In conclusion, the Amazon marketplace continues to evolve, offering a blend of opportunities and challenges. Despite growing fees and increasing competition, Amazon remains a potent platform for sellers looking to make their mark in the e-commerce landscape. Success in this arena is contingent on one’s ability to adapt, innovate, and navigate the constantly changing marketplace environment.