The competitive landscape on Amazon has shifted significantly over the past four years. While the marketplace continues to attract nearly a million new sellers annually, the number of active sellers has dropped from 2.4 million in 2021 to under 1.9 million in 2025. This reduction creates a prime opportunity for sellers who can navigate Amazon’s evolving ecosystem strategically.
Less Competition, More Traffic Per Seller
Despite Amazon’s total traffic remaining relatively stable since 2021, fewer active sellers have dramatically increased traffic per seller. Research from Marketplace Pulse shows that the monthly traffic per seller has jumped 31%, rising from 2,162 visits per seller in 2021 to 2,837 visits per seller in 2025.
At the same time, Amazon’s overall revenue grew by 36%, climbing from $470 billion in 2021 to $638 billion in 2024. While Amazon does not disclose individual third-party seller revenue, third-party sellers now account for 62% of total unit sales, up from 56% in 2021. This suggests that despite a declining seller population, those who remain active are benefiting from higher visibility and greater sales opportunities.
Seller Longevity Is Key to Success
While Amazon continues to see new entrants in its marketplace, the rate of seller retention is low. Today, more than 60% of the top 10,000 Amazon sellers registered before 2019, proving that seller longevity is one of the strongest indicators of long-term success.
Although the U.S. remains the most profitable Amazon marketplace, some smaller international markets offer better traffic-to-seller ratios:
- Saudi Arabia: 8,228 visits per seller
- South Africa: 8,065 visits per seller
- Singapore: 4,531 visits per seller
While these markets offer higher traffic per seller, their total marketplace volume remains significantly lower, limiting overall revenue potential compared to major global markets like the U.S., UK, and Germany.
Challenges Sellers Face in a Changing Marketplace
Despite the increase in traffic per seller, Amazon’s evolving marketplace presents new challenges:
✔️ Rising costs: Amazon’s fees now exceed 50% of revenue for many sellers.
✔️ Competition from Chinese sellers: More than 50% of Amazon’s top sellers now come from China, increasing pricing pressure as manufacturers bypass traditional distribution channels.
✔️ Regulatory hurdles: Sellers face increasing compliance challenges, including tariffs, taxation complexities, and stricter product regulations.
Why Now Is the Best Time to Sell on Amazon
Even with these challenges, the decrease in seller competition presents a rare opportunity. Higher traffic per seller, combined with an increasing share of third-party sales, means profit potential is stronger now than it was four years ago.
While newer sellers may lack some of the advantages enjoyed by early adopters—such as previously allowed growth strategies like offering free products for reviews—the declining competition offsets many of Amazon’s marketplace difficulties. Sellers who can adapt to policy shifts, optimize listings, and scale strategically stand to gain major traction in 2025 and beyond.
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