Overview

Amazon recorded only 165,000 new seller registrations in 2025, a 44 % drop from the previous year and the lowest annual total since at least 2015. The plunge reflects a marketplace that now favors well‑funded, experienced operators, leaving casual entrants with slim chances of success. Sellers should pay close attention because the shift reshapes competition, advertising costs, and the overall profitability landscape.

Key Points

• Historic low in new sellers — 165 K fresh accounts joined Amazon in 2025, down 44 % YoY and the smallest figure in a decade.
• U.S. share shrinks dramatically — American newcomers fell to 16.3 % of all registrations, a drop from 26.8 % in 2024 and far below the 70.8 % share seen in 2016.
• Chinese sellers dominate — Registrations from China still represent roughly 60 % of the total, keeping their outsized influence on the platform.
• Active seller pool contracts — The count of sellers with at least one listing fell from 2.4 M in 2021 to about 1.65 M by the end of 2025.
• Top‑performer concentration rises — Sellers generating over $1 M annually grew to 100 K (up from 60 K in 2021), while 235 sellers now exceed $100 M in yearly revenue.
• Traffic per seller climbs — Average visitor traffic per active seller rose 31 % between 2021 and 2025 as fewer competitors vie for the same buyer base.

What's Changing

1. Rising cost of entry — Advertising budgets that once served as growth levers now act as near‑mandatory expenses; a seller launching a new product in 2025 must allocate at least $2,000‑$3,000 monthly to maintain visibility, compared with $800‑$1,200 in 2021.
2. Escalating platform fees — Amazon’s services now account for roughly 60 % of marketplace revenue, pushing fee structures for fulfillment and referral up by 15‑20 % over the past four years. A seller of $50,000 monthly sales sees fees increase from $7,500 to about $9,000.
3. Tariff volatility — Fluctuating import duties on U.S.‑made goods squeezed margins for domestic manufacturers, making low‑cost overseas sourcing more attractive. For example, a U.S.‑based private label faced a 12 % increase in landed cost on electronics between 2023 and 2025.