It’s simple to suppose that Amazon is “saturated.”
Too many vendors, too much competition, and too little elbow room—right?
But the new numbers tell a very different story.
As of 2025, more than 100,000 Amazon sellers are now grossing more than $1 million per year. That’s almost doubled since 2021. Interestingly, that growth is occurring at a time when the number of active vendors has actually decreased.
This is not an anomaly. It’s a basic change in the Amazon landscape.
Let’s demystify what is changing, what it all means to existing and prospective sellers, and how to position yourself to succeed—regardless of the increasing bar.
From Side Hustle to Serious Business
One of the most telling trends is the 10% drop in active Amazon sellers. While at first glance this might suggest declining interest, the opposite is true for those who’ve remained. Sellers who stayed active are now capturing more revenue per seller, reflecting a natural progression from casual selling to serious brand-building.
Amazon is no longer a part-time gig with part-time effort. It’s become a competitive commerce platform where only those treating it like a real business survive and scale.
The signal is loud and clear: the low-hanging fruit is gone, but the tree still bears plenty for those willing to climb.
The 2% Who Rule the Marketplace
It’s not about luck or an early mover advantage—it’s about mastery of operations, bold reinvestment, intelligent advertising, and brand adherence.
It’s the classic power law distribution, in which leaders pull well ahead and everyone else stumbles to find their footing.
It shows the classic power law pattern, where the top companies grow much faster than the rest, leaving others behind. And it’s becoming more evident every year.
For sellers, this shift forces a mindset change. You can’t afford to “dabble” anymore. The bar for success is higher—but so is the potential upside.
Amazon USA: Still the Global Powerhouse
Even with mounting worldwide competition, Amazon U.S. is still the crown jewel. Of 235 sellers worldwide that make more than $100 million in a year, 146 are selling on Amazon.com—the marketplace based in the U.S.
More importantly, 43% of sellers based in the U.S. are now making $100K or more per year. That’s an enormous jump in profitability and evidence that growth is still in full swing for brands that have clear positioning.
If you’re selling on Amazon.com, you’re in the most developed, competitive, and opportunity-abundant marketplace. That brings challenges—but also unmatchable potential if you get it right.
The Rise of Chinese Sellers in the U.S. Market
Here’s where it gets even more intriguing—and for some, alarming.
Based on the most recent reports, 57% of Amazon USA million-dollar sellers are Chinese, and 39% American or selling through U.S.-based LLCs.
Chinese sellers bring important strengths:
Sophisticated access to supply chains
Reduced manufacturing expenses
Aggressive pricing strategies
Discipline in launching and scaling quickly
This deluge has resulted in tougher competition, especially in price-sensitive segments such as home products, electronics, and clothes. It has also compelled sellers who are not Chinese to innovate on brand, customer experience, and product differentiation merely to remain competitive.
It’s not fear—it’s focus. To compete on price alone is a losing proposition. To compete on value? That’s where you can succeed.
What This Means for Sellers in 2025 and Beyond
The Amazon game has changed—but it’s far from over.
In fact, it’s more rewarding than ever for those willing to treat it like a serious business. You don’t need to be part of the 2% today. But you do need to act like someone who’s building to get there.
This means:
- Building real brands with strong positioning
- Investing in premium creatives and storytelling
- Leveraging data to drive ad spend and keyword targeting
- Managing operations like a CFO, not a hobbyist
- Thinking beyond Amazon and planning for omnichannel growth
The sellers making $1M+ today didn’t stumble into it. They earned it through consistency, experimentation, and a long-term mindset.
Final Thoughts: The Opportunity Is Real—If You’re Ready for It
Amazon isn’t dying—it’s growing up. And just like in any grown-up market, those who mature along with it have the potential to win big.
Yes, competition is tougher. Yes, expectations are greater.
But so are the benefits.
If the numbers are intimidating you, consider it a sign—not to retreat, but to advance.
Because while other competitors are failing out, the ones who double down on strategy, systems, and endurance are authoring the next Amazon success story.
