Amazon’s marketplace is dominated by veteran sellers who have been on the platform for years. A recent analysis by Marketplace Pulse found that over 60% of the top 10,000 sellers have been active for more than six years. This shows that established sellers have adapted to the competitive environment and continue to thrive.
The same analysis revealed that nearly 30% of top sellers started before 2016. Sellers who joined in 2016, 2017, and 2018 still make up around 10% of the elite group each. Newer sellers are also succeeding, with about 10% of top sellers joining in the last two years. This indicates that the market remains accessible to those with a clear strategy.
High Failure Rate
Despite some sellers achieving success quickly, most don’t stay active long-term. Less than 8% of sellers registered before 2019 are still active. Even for those who signed up in 2022, only one in five remains active. For 2023 registrations, the rate is under 30%. This means over 30% of registered accounts never make a sale.
Several factors contribute to this high failure rate. Fulfillment fees and advertising costs are rising, increasing Amazon’s share of each sale. In many cases, this fee exceeds 50% of the product’s final cost.
External Challenges
Sellers face external challenges, too. The pandemic, rising international logistics costs, global inflation, and recent tariff instability have impacted operations. These factors have increased costs and tested e-commerce businesses’ resilience.
Despite these challenges, Amazon continues to offer opportunities. Marketplace Pulse reports that over 50% of the platform’s Gross Merchandise Volume (GMV) comes from sellers who have been on the platform for over five years. This shows that building long-term sustainable businesses is possible.
Globally, Amazon’s seller ecosystem is growing. According to Statista, the marketplace generated over €651 billion in GMV in 2023, accounting for more than 60% of Amazon’s total sales. This confirms that the third-party business model is not only established but drives the company’s growth.