Amazon Has Fewer Active Sellers Than in 2021 — And That’s a Huge Opportunity

Fewer Sellers, More Traffic per Seller

It might sound counterintuitive, but selling on Amazon in 2025 is less competitive than it was in 2021. Not because fewer people are trying — Amazon still adds nearly a million new sellers every year — but because fewer are sticking around.

According to Marketplace Pulse, the number of active sellers (defined as those who received at least one piece of feedback in the past 12 months) has dropped from over 2.4 million to under 1.9 million in four years. Meanwhile, Amazon’s traffic has remained relatively stable. That means each active seller today has access to 31% more traffic than they did in 2021, from 2,162 visits per seller to 2,837.

The Share of Opportunity Keeps Rising

Amazon doesn’t disclose third-party revenue, but it does share how much of its total unit volume comes from 3P sellers, and that number is at an all-time high: 62% of all units sold in Q4 2024. Combine that with a 36% increase in topline Amazon revenue since 2021, and it’s clear: the pie is getting bigger, and third-party sellers are getting a larger slice.

But This Isn’t the Amazon of 2015

It’s important to be realistic. Amazon’s fee structure has become heavier, with many sellers now losing over 50% of revenue to ads, FBA, and referral fees. Chinese sellers continue to grow their market share, often outpricing domestic brands with factory-direct tactics. Regulatory complexity is increasing, and shortcuts that worked five years ago (like incentivized reviews) are no longer tolerated.

Complexity Is a Moat

So why is this still an opportunity?

Because complexity filters out the casual seller. The drop in active sellers isn’t random — it reflects who’s equipped to survive Amazon’s maturing ecosystem. The brands that win are the ones that treat Amazon like a real business, with systems, strategy, and adaptability.

We’ve seen this across the board: brands with better operations, stronger branding, compliance structures, and long-term thinking are growing faster, and with less direct competition than they faced just a few years ago.

Newer Sellers Can Win — With the Right Playbook

Even if you’re just starting, this isn’t a closed game. The rules have changed, but so has the field. Fewer active sellers mean more breathing room for new brands, especially if they launch with strong fundamentals. No gimmicks. No grey-area hacks. Just solid execution.

Now is one of the best times to be strategic and intentional. Because today, you’re no longer one in 2.4 million.