New Survey Uncovers Key Trends and Challenges for Amazon Sellers in a Shifting Marketplace
SmartScout, the leading eCommerce analytics software suite, released “The State of the Amazon Seller Report,” which reveals a changing landscape for Amazon sellers, as rising fulfillment fees, increased competition, and growing concerns over account suspensions reshape the marketplace.
The report, based on a survey of 325 sellers across all business sizes, highlights how profitability pressures and policy changes are impacting Amazon entrepreneurs.
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Below is a snippet of the survey’s findings
- Profitability Pressures Mount – Over 50% of sellers reported being less profitable in 2024, squeezed both by fees and international competition.
- Higher Fees, Higher Prices, Less Profit – 67% of sellers raised prices in 2024 due to Amazon FBA fee hikes, but nearly 60% of sellers who raised prices still reported lower profits in 2024.
- Suspensions on the Rise – 35% of sellers have experienced an account suspension, with mid-sized sellers ($100K-$1M) being the most affected.
- Declining Seller Sentiment – Almost 2/3rds of sellers believe that Amazon is not a fair marketplace, though wholesalers are the most optimistic (40%).
- Support Falling Short – Nearly 46% of sellers report that Amazon’s seller support has worsened in the last two years, with 60% stating it actively holds back their business.
- AI’s Limited Impact – Despite Amazon’s increasing AI-driven tools, only 15.6% of sellers say they’ve seen any positive impact on their business. Even more said it actively hurts their business (16.6%)
- Prime Deal Fatigue Sets In – 38% of sellers participate in Prime shopping events, but many report growing concerns about discount pressure and declining profitability.
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