Home Science Technology Amazon’s Third-Party Sellers Drive 61% of Sales, Up 10% in Five Years

Amazon’s Third-Party Sellers Drive 61% of Sales, Up 10% in Five Years

Amazon Cover
Amazon Cover

In recent years, Amazon has witnessed a remarkable surge in the contribution of third-party sellers to its overall sales, solidifying their position as a key revenue stream for the ecommerce giant.

Recent data from AltIndex.com reveals that in the first quarter, third-party (3P) sellers accounted for a substantial 61% of Amazon’s total sales, marking a significant 10% increase from five years ago.

Amazon’s reliance on third-party seller services has seen exponential growth over the past half-decade. Unlike first-party sellers who operate on wholesale models, third-party sellers leverage Amazon’s Fulfilment by Amazon (FBA) program, allowing them greater control over pricing and product ownership while Amazon handles logistics and shipping. This arrangement has propelled third-party sales to become Amazon’s second-largest revenue stream.

The trajectory of third-party seller dominance on Amazon’s platform has been remarkable. In 2018, third-party sellers contributed roughly 50% of Amazon’s total sales, a figure that surged to 61% in the first quarter of 2024. This upward trend is expected to continue, bolstered by Amazon’s recent adjustments to fulfillment rates and inventory fees, aimed at incentivizing successful sellers.

The financial implications of Amazon’s 3P selling model are staggering. From $42.7 billion in 2018, net sales generated through third-party seller services nearly doubled to over $80 billion by 2020. Despite a slight dip in 2023, totaling $96 billion, Amazon has accrued almost half a trillion dollars in revenue from its 3P services over the past five years, underscoring the significance of third-party sellers in the ecommerce landscape.

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