April 10, according to the latest data from Marketplace Pulse, more than 60% of the current top 10,000 sellers on Amazon were registered before 2019. Despite thousands of new sellers joining every day, early registered sellers still dominate.
Five years ago, half of Amazon’s best-selling sellers already had at least four years of selling experience. And today, that sales threshold has risen to more than six years. Marketplace Pulse’s research shows that sellers who registered before 2016 now account for nearly 30 per cent of the total number of best-selling sellers. While those who registered between 2016 and 2018 each contribute about 10 per cent of the total.
While this structure has remained stable in recent years, data shows that nearly 10 per cent of best-selling sellers have registered in the last two years. The market, while barriers have risen, is still penetrative for strategically minded new entrants.
However, the vast majority of sellers never reach this height. Less than 8 per cent of all sellers who registered before 2019 are still active today. Activity rates for more recently registered accounts have improved over time, but remain below 20 per cent for sellers registering in 2022. Under 30 per cent of those registering in 2023 remain active to date.
Such a high churn rate reflects the reality of the Amazon platform. More than 30 per cent of accounts have never completed a sale, and even sellers who have successfully opened a sale are chronically challenged. Distribution fees and advertising costs continue to rise, directly driving up overall costs for sellers. This will result in commission rates that have exceeded 50 per cent for some sellers.
Uncertainties outside the platform have also exacerbated the situation. In recent years, Amazon sellers have had to deal with multiple external challenges such as epidemic shocks, soaring container costs, inflationary pressures and tariff fluctuations. All of which have significantly increased operational complexity.
Despite this, the platform continues to create opportunities. Data shows that the growth trend of Amazon’s gross merchandise volume (GMV) is closely linked to seller activity. More than half of GMV comes from sellers who started selling five years ago. This reflects the ability of established sellers to build long-term sustainable businesses even in a changing environment.
These numbers clearly show that achieving success on the Amazon platform is no easy task. High churn rates go hand in hand with thresholds. But for those who are able to rise to the challenge and master proven strategies. They both seasoned sellers and up-and-coming challengers can reap the rewards. However, longevity remains the strongest predictor of success on Amazon.
