Once considered the golden gateway for aspiring entrepreneurs, Amazon is witnessing a dramatic decline in new marketplace sellers. Data reveals that new seller registrations will hit a decade-low in 2025, with only 165,000 newcomers—a staggering 44% drop from 2024 figures.
The Perfect Storm Driving Sellers Away
A confluence of factors is reshaping Amazon's marketplace landscape. Rising platform commissions, escalating advertising costs, and the operational complexities introduced by AI-powered tools are creating insurmountable barriers for small-scale sellers. The e-commerce giant is increasingly becoming the domain of well-capitalized, established brands capable of navigating these challenges.
Survival of the Fittest: Marketplace Darwinism
While new entrants dwindle, Amazon's third-party marketplace continues to thrive. U.S. gross merchandise volume reached $305 billion , with global GMV hitting $575 billion . The platform's active sellers saw average traffic surge by 31%, while the number of merchants surpassing $1 million in annual sales exploded from 60,000 in 2021 to over 100,000—demonstrating the intensifying winner-takes-all dynamic.
The Globalization of Amazon Sellers
Geographic distribution reveals striking trends: Chinese sellers now constitute 59.9% of new marketplace participants, dwarfing the 16.3% share held by U.S.-based sellers. This imbalance underscores Amazon's evolution into a global sales channel dominated by sophisticated commercial operations rather than individual entrepreneurs.
The shifting marketplace dynamics demand increasingly sophisticated strategies from brands. Success now hinges on meticulous operational execution and differentiated product offerings to stand out in Amazon's competitive ecosystem.