Amazon.com Inc. has released its annual report on third-party seller performance, underscoring the significant role independent businesses play in driving sales growth on the e-commerce giant’s platform. The report, which covers activity across the company’s U.S. marketplace, highlights how millions of small and medium-sized businesses have become central to Amazon’s retail ecosystem.
The company said third-party sellers now account for more than 60 percent of units sold on Amazon, a figure that has steadily increased over the past decade. Independent merchants, many of whom rely on Amazon’s Fulfillment by Amazon (FBA) logistics services, have outpaced the company’s own first-party retail sales in categories ranging from consumer electronics to home goods and apparel.
The report detailed that over 2 million small and medium-sized businesses are actively selling through Amazon globally, with hundreds of thousands based in the United States. Collectively, these sellers generated tens of billions of dollars in export sales in 2024, underscoring Amazon’s role as a gateway for businesses seeking international reach.
Amazon emphasized the job creation impact tied to seller growth. According to the findings, U.S.-based third-party sellers supported more than 2.2 million jobs last year through their use of the marketplace. These jobs included positions in logistics, customer service, product sourcing, and technology. The report pointed to sellers who scaled small operations into full-time enterprises employing dozens of workers, often expanding beyond their local communities to reach global buyers.
The company’s marketplace has long been positioned as a platform for entrepreneurial opportunity, but the report’s release comes at a time when Amazon faces growing scrutiny from regulators and competitors alike. The Federal Trade Commission has investigated Amazon’s marketplace practices, while rivals such as Walmart Inc., Shopify Inc., and eBay Inc. have invested heavily in their own seller ecosystems to compete for independent merchants. By publishing the report, Amazon is seeking to emphasize its contribution to small-business growth and broader economic development.
The findings also highlighted geographic diversity among sellers. States such as California, Florida, New York, and Texas remain leading hubs for third-party businesses, but Amazon noted that sellers from rural areas and smaller cities are also gaining ground. Improved access to fulfillment services and training programs has enabled more entrepreneurs to participate, with Amazon citing growing numbers of sellers in states like Iowa, Alabama, and Idaho.
Fulfillment by Amazon remains one of the key drivers of seller growth. By providing warehousing, packaging, and shipping services, FBA allows small businesses to scale operations without investing in costly logistics infrastructure. The report noted that sellers using FBA experience higher customer satisfaction scores and faster delivery times, which often translate into stronger sales performance.
Amazon also pointed to the role of its advertising platform in supporting seller success. Sponsored product ads, display ads, and video promotions have become increasingly important for independent merchants seeking visibility in a crowded marketplace. The report said advertising adoption among third-party sellers increased in 2024, reflecting the growing need for marketing investments to remain competitive.
International expansion was another theme highlighted in the report. Amazon said that tens of thousands of U.S.-based sellers exported products to customers in Europe, Asia, and Latin America last year. Export sales grew by double digits, with demand particularly strong for categories such as fashion, beauty, and consumer electronics. Amazon has expanded its marketplace infrastructure in regions like India, Mexico, and Brazil, providing more opportunities for cross-border sales.
The company framed the report as evidence of its partnership with independent sellers, emphasizing investments in training, support, and compliance programs. Amazon has launched initiatives such as Seller University, which offers online courses and guidance, and programs like Amazon Small Business Academy, designed to help entrepreneurs improve digital retail skills. These efforts aim to ensure that sellers maintain high standards while continuing to scale their operations.
While the report highlighted success stories, it also acknowledged challenges. Sellers continue to face competitive pressure, with millions of businesses vying for visibility on the platform. Rising advertising costs, the need for inventory management, and regulatory compliance remain hurdles for many merchants. Amazon said it is committed to expanding tools that improve efficiency and help sellers adapt to changing consumer behavior.
The release of the report is consistent with Amazon’s broader effort to showcase the importance of its marketplace model. As consumer habits evolve and competition in e-commerce intensifies, independent businesses have become one of Amazon’s most valuable assets. By demonstrating the scale of third-party contributions, Amazon is reinforcing the narrative that its success is closely tied to the growth of millions of small and medium-sized sellers.
With U.S. e-commerce sales expected to surpass $1.5 trillion by 2027, according to data from eMarketer, the competition for sellers is set to intensify. Platforms that can offer scale, logistics, and customer reach will be best positioned to capture growth. Amazon’s latest report is a signal that the company intends to remain the dominant marketplace by doubling down on its partnerships with independent businesses.