If you‘re considering becoming an Amazon seller, the most important question you probably want answered is – how much competition will I face?
With Amazon‘s rise to dominance as the #1 online retailer, millions of sellers have flocked to their marketplace hoping to capitalize. But just how crowded is the space in 2023?
In this detailed guide, we‘ll dive into the latest data and trends surrounding Amazon‘s booming seller base. You‘ll discover how many sellers are on Amazon, which countries and product categories they operate in, and their common demographics.
Equipped with these insights, you can better gauge the competition and opportunities that exist in Amazon‘s massive, $300+ billion marketplace.
Total Number of Active Sellers
Let‘s start with the topline numbers. According to Amazon‘s own records, there are currently over 5 million active seller accounts across their worldwide marketplaces.
To put that figure into perspective, just five years ago in 2018 Amazon had about half that number with only 2 million active sellers globally. So the seller base has more than doubled in under 5 years as the platform continues its explosive growth.
Several factors account for this influx of new sellers:
- Amazon‘s expanding international presence across Europe, Asia, South America
- The rise of social influencers and bloggers becoming Amazon affiliates
- Mainstream retailers like Nike, Apple establishing official seller stores
- Lower barriers to entry enabling more small businesses and entrepreneurs to sell
- The COVID pandemic shifting commerce online and prompting more physical businesses to open Amazon seller accounts
During 2020 and 2021 alone, over 1 million net new sellers joined Amazon – a 20% jump in just two years!
Clearly, faith in Amazon‘s selling platform remains strong. But with an ever-expanding pie, is there still room for new sellers to stake their claim?
Where Amazon Sellers Are Located
Amazon operates marketplaces customized for 16 countries, from the United States and Canada to the United Arab Emirates and Singapore. Sellers can choose which countries to sell in depending on where they are located.
The United States continues to be home to the most Amazon sellers by far. A full 40% of active sellers – over 2 million businesses – are based in the US. This underscores the brand‘s American roots.
China occupies 2nd place with around 10% share of sellers or 500,000+ active accounts. No other country comes close in seller volume to the US and China.
The rest of the top 10 countries for Amazon sellers are:
|United States||2 million|
Ironically, despite being the 3rd largest marketplace, the UK only accounts for 4.5% of Amazon‘s global sellers. Equally surprising, just 2.5% of sellers are based in India – a booming ecommerce market.
This suggests there remains huge potential for attracting international sellers in markets outside the US and China. That‘s good news for new entrants who face less immediate competition in countries like Spain, Italy, and Japan.
Sellers Per Product Category
Amazon buckets its over 12 million products into 40 major retail categories. Some attract more sellers than others.
The most popular categories ranked by number of competing sellers are:
- Electronics: phones, computers, accessories
- Home & Kitchen: furnishings, appliances, home decor
- Toys & Games: toys, board games, baby products
- Clothing, Shoes & Accessories
- Beauty & Personal Care
Electronics consistently ranks as the most competitive category, with over 20% of sellers vying for business. However, niche segments within broader categories often have fewer sellers.
For instance, selling security cameras may offer less competition than selling all electronics. Specializing is key, even in crowded categories.
Prime Vs Non-Prime Sellers
One notable way sellers differentiate themselves is through Amazon Prime.
Prime members pay $139 annually for perks like free shipping and media streaming. Over 150 million people globally subscribe to Amazon Prime.
Sellers enrolled in Amazon‘s Fulfillment by Amazon (FBA) program can qualify to display the Prime badge. Prime increases buyer trust and conversions.
FBA outsourcers shipping and customer service to Amazon, so sellers can focus on growing their business.
A full 53% of sellers now leverage FBA fulfillment to achieve Prime status. It‘s near impossible to scale revenue past ~$1 million without the Prime badge.
Non-Prime sellers face stiffer competition selling to a smaller pool of non-Prime buyers. Earning Prime perms opens more high-value opportunities.
Common Amazon Seller Demographics
Beyond location and product category, who are the people behind these millions of Amazon businesses? Some key demographic insights:
- Gender: Approximately 70% of Amazon sellers are men according to a survey by Jungle Scout. But female sellers tend to have higher lifetime sales.
- Age range: The majority fall between ages 25-54. Millennials make up the biggest chunk at over 40%.
- Education: 67% of sellers have some college education or higher. But high school grads still comprise 15%.
- Occupation: 47% identify as self-employed, selling independently or as a side business.
Interestingly, 42% of sellers cited "gaining more freedom and flexibility" as a top reason for starting an Amazon business. Many treat it as supplemental income or a work-from-home job.
Pros and Cons of Selling on Amazon
Given the insane competition, is Amazon still a smart marketplace for new sellers?
The upside is Amazon‘s unmatched reach of over 197 million monthly visitors. That built-in demand is virtually impossible to find elsewhere. Prime subscribers and FBA perks also level the playing field.
The downside is competing against entrenched mega-sellers, navigating Amazon‘s complex policies, and thin margins on hypercompetitive products. Standing out remains a challenge.
For many entrepreneurs, the rewards outweigh the risks. Ambitious businesses can still carve out a profitable niche in Amazon‘s crowded bazaar.
Hopefully these insights into how many Amazon sellers exist and who they are provides a realistic snapshot of the competitive landscape. Now it‘s up to you to decide if and how you can compete!