Two recent Amazon data points are drawing attention, and at first glance they may seem contradictory.
On one side, Amazon’s marketplace growth appears to be slowing. The share of third-party (3P) sellers in sponsored units sold on Amazon declined from 62% to 61%, and then to 60% over the last three quarters. This marks the first time since Amazon began reporting this metric in 2004 that it has experienced declines in two consecutive quarters.
On the other side, the outlook for sellers remains remarkably strong.
According to Amazon’s newly released Small Business Empowerment Report:
- More than 75,000 sellers surpassed $1 million in annual sales in 2025
- This represents a 36% increase compared to the previous year
- The average annual sales of US-based sellers exceeded $375,000
- Independent sellers still account for more than 60% of all sales on Amazon
- US-based sellers sold more than 4.6 billion products in 2025
- More than 2 million people were employed to support Amazon-related seller businesses
So, are these two trends contradicting each other?
Not really.
What we are seeing is Amazon transitioning out of its “automatic growth” era. The days when sellers could easily find category gaps and rapidly scale new products are becoming less common. The platform is maturing.
As a result, overall marketplace growth may be slowing, but strong brands and well-managed sellers continue to grow. In fact, the record number of million-dollar sellers is perhaps the clearest evidence of this trend.
Another important takeaway from Amazon’s report is that more than 95% of sellers also sell through channels outside Amazon. Amazon is no longer the only sales channel; it has become the central channel within a broader multi-channel strategy. Sellers are increasingly diversifying their revenue streams through Walmart, TikTok Shop, Shopify, and other platforms.
In short:
Amazon is not dying.
Amazon is not shrinking.
But the era when Amazon grew everyone at the same pace is coming to an end.
The winners in this new environment will be:
- Brands that build long-term customer loyalty
- Sellers who make data-driven decisions
- Businesses that effectively leverage advertising and AI tools
- Companies that establish a presence across multiple sales channels
The marketplace may be entering a period of slower growth, but opportunities for professional sellers continue to expand.
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