New Sellers Flood Amazon Marketplace

In a recent report from Business Insider, e-commerce experts state that Amazon sellers are facing tougher competition than ever. Selling on Amazon is becoming increasingly popular as more and more individuals and small businesses begin to realize the power that lies within the platform as a whole, and with more seller accounts opening up every day, the competition among sellers is rapidly increasing.

amazon seller statistics

According to ChannelAdvisor, an e-commerce consulting group that handles the Amazon accounts for many major corporations, their clients have seen a significant decrease in growth. Statistics show that the growth rates of ChannelAdvisor’s accounts on Amazon decreased from 11.6% in June to an alarming 6.4% in July, as noted on an annual basis. These numbers are a sharp contrast to the numbers published by recently, which stated that Amazon experienced a growth rate of over 33% in total.

There may be a few reasons for this: more Amazon sellers on the marketplace overall, along with many more international sellers competing to sell the same product. In particular, Chinese sellers have recently displayed a dominant position on Amazon, with sales from Chinese sellers doubling from 2014 to 2015.

“There has been a sharp increase in competition between Amazon sellers, making it incrementally harder for individual sellers to grow as rapidly as they did before, and we believe this increase is driven at least in part by a substantial increase in new sellers to the platform,” stated Scot Wingo, the Chairman of ChannelAdvisor.

Wingo also acknowledged that these numbers may be rooted in the major boost in international sales. “It is hard to quantify, but generally there has definitely been a large influx of sellers and many are cross-border trade and/or brands,” Wingo stated, admitting that international Amazon sellers play a major role in the rise in competition among all sellers.