Once considered the gold rush of cross-border e-commerce, Amazon attracted countless sellers dreaming of overnight success. However, reality has proven far more challenging than expectations. Today, a significant number of sellers are quietly exiting the platform, signaling profound changes in Amazon's ecosystem. Data reveals that 2025 saw the lowest number of new Amazon sellers in a decade, with the total active seller count shrinking dramatically. Is this merely the bursting of a temporary bubble, or an inevitable industry consolidation?
The Amazon Seller Exodus: What the Data Reveals
Recent figures show Amazon attracted only 165,000 new global sellers in 2025—a 44% decline compared to previous years and the lowest number since records began in 2015. More strikingly, the total active seller count plummeted from 2.4 million in 2021 to 1.65 million, representing a nearly 30% reduction in just four years. This isn't an isolated phenomenon but rather reflects fundamental shifts in the platform's ecosystem.
Four Key Factors Driving Sellers Away
1. Mounting Cost Pressures
Rising platform commissions, increasing storage fees, volatile international trade conditions, fluctuating tariffs, and persistently high logistics costs have collectively squeezed profit margins. For new sellers with limited risk tolerance, many face immediate losses upon entry.
2. AI-Driven Competitive Landscape
Top sellers have adopted artificial intelligence across product selection, pricing, and advertising optimization. This technological advantage creates overwhelming superiority in traffic acquisition and operational efficiency, leaving small and medium sellers facing unprecedented competition and exponentially growing customer acquisition challenges.
3. Stricter Policies and Regulations
Global tax compliance requirements, Amazon's tighter fund reservation policies, and increasingly mandatory advertising requirements have significantly increased operational burdens. Sellers lacking professional capabilities and compliance awareness find survival on Amazon increasingly difficult.
4. Escalating Return Issues
Amazon's return rate stands at 19.3%, far exceeding industry averages. Persistent fraudulent returns coupled with delayed platform resolution mechanisms create substantial hidden costs for sellers, impacting both profits and business confidence.
Industry Transformation: From Quantity to Quality
Despite the seller exodus, Amazon's overall growth remains strong. The platform's global GMV reached $575 billion in 2025, with average traffic per active seller growing 31% and the number of sellers exceeding $1 million in sales surpassing 100,000. These indicators suggest Amazon is evolving from a mass entrepreneurship platform into a high-barrier commercial ecosystem demanding greater professional capabilities and risk resilience.
Chinese sellers still account for 59.9% of new entrants—down from 62.3% in 2024—signaling the end of an era reliant on information asymmetry and bulk product listings. Future success will belong to sellers demonstrating refined operational capabilities and innovation.
Path Forward: The Imperative of Refined Operations
To navigate Amazon's transformed ecosystem, sellers should consider these strategic approaches:
- Supply Chain Optimization: Implement precise management to reduce logistics and procurement costs through strategies like overseas warehouse partnerships and smaller, more frequent inventory replenishment.
- Product Differentiation: Target niche markets with premium differentiated products—like one pet supplier achieving 30% premium pricing through innovative foldable pet crates.
- Operational Upgrade: Establish data-driven decision systems for product selection, pricing, and advertising, complemented by standardized operational procedures to enhance team efficiency.
- Organizational Development: Build replicable operational teams with robust training systems to mitigate risks from staff turnover and enhance overall professional capabilities.
In Amazon's next chapter, refined operations will separate thriving sellers from those struggling to survive. Only through continuous improvement in professional capabilities and innovation can sellers secure their position in this increasingly competitive marketplace.