Amazon Continues to Attract New Sellers
Amazon remains the go-to platform for sellers, with over 900,000 new sellers joining its 22 markets in 2024, as reported by Marketplace Pulse. This growth indicates sustained interest in the marketplace, despite increased competition and more complex operating rules.
Growth in Seller Numbers
Over the past five years, Amazon has onboarded more than four million new sellers, with around a third joining the US market on Amazon.com. While not all new sellers manage to establish themselves, the constant influx of new entrants highlights the perceived opportunity that Amazon continues to represent.
The number of new sellers joining Amazon is no longer directly related to sales growth. However, the fact that this number is not decreasing suggests that Amazon remains a viable option for sellers. According to Marketplace Pulse, “the number itself is almost insignificant; the fact that it is not trending downward is the real sign.”
Shift in Sales Composition
More than 50% of sales volume on Amazon comes from sellers who have been operating for more than five years. This suggests that established businesses are better equipped to adapt to market demands and rising rates.
New Sellers Enter the Market
Over 2,000 new sellers join Amazon every day, highlighting the market’s dynamics. This constant influx of new sellers maintains supply and reaffirms Amazon’s role as a crucial space for global e-commerce participation.
China-Based Sellers Dominate the Market
China-based sellers have reached a significant milestone, exceeding 50% of market share on Amazon, according to Marketplace Pulse. This growth marks a historic change in Amazon’s dynamics, relegating US sellers to around 45% and leaving the rest divided between other countries.
Dominance of Chinese Sellers
The dominance of Chinese sellers is not a recent phenomenon but the result of a decade-long trend. Amazon itself acknowledged the “significant” market share of Chinese sellers in their marketplace, in the annual filing of Form 10-K with the United States Securities and Exchange Commission (SEC) in February 2024.