Overview

Amazon's third-party marketplace has reached a historic milestone, with independent sellers now accounting for 62% of all units sold on the platform during the fourth quarter of 2024. This record-breaking figure underscores Amazon's accelerating transformation from a direct retailer into a marketplace-first platform — a shift that carries significant implications for every seller operating on the channel.

What the Numbers Show

The 62% share represents the highest proportion of third-party sales in Amazon's history, continuing a steady upward trajectory that has been building for over a decade. Third-party seller services now generate approximately 24.48% of Amazon's total revenue, making independent sellers one of the company's most important revenue engines. When combined with advertising revenue — which sellers also heavily contribute to — the third-party ecosystem is on track to surpass Amazon's own first-party retail revenue within the next three years, according to industry analysts.

This isn't a sudden spike but rather the continuation of a deliberate strategic direction. Amazon has been systematically investing in tools, infrastructure, and programs that encourage more sellers to join and more buyers to purchase from third-party listings. The Fulfillment by Amazon program, advertising platform, and Brand Registry tools have all played a role in making the third-party marketplace increasingly attractive to both new and established sellers.

Why Amazon Is Pushing This Direction

The economics behind this shift are straightforward from Amazon's perspective. When Amazon sells products directly, it takes on inventory risk, warehousing costs, and thinner margins on competitive products. When third-party sellers handle those responsibilities, Amazon collects referral fees, FBA fees, advertising spend, and subscription fees — all with significantly less operational risk.

This marketplace-first model allows Amazon to offer a vastly larger product catalog without the capital investment required to stock those items. It also creates a self-reinforcing cycle: more sellers mean more selection, which attracts more buyers, which in turn attracts more sellers. Amazon's role increasingly resembles that of a platform operator collecting tolls at multiple points in the transaction, rather than a traditional retailer buying and reselling goods.