Amazon Sellers Struggle Amid Economic Downturn and Platform Challenges
Amazon sellers face a perfect storm of economic headwinds and platform challenges. Retail sales have dipped, and sellers report dramatic sales declines, with some even considering leaving the Amazon platform.
The economic downturn has hit Amazon sellers hard. Multiple sellers blame declining sales on broader economic concerns, with consumers tightening their belts and even giving up pets due to high living costs. Retail sales have fallen for the first time since February 2025, adding to the gloom. Sellers also cite increased competition from international players and tariff-related cost increases as significant factors.
Amazon's advertising revenue, however, has soared to $15.7 billion in Q2 2025, a 22% year-over-year increase. Despite Amazon's claims of record-breaking Prime Day sales, many third-party sellers reported underwhelming results, with some not seeing any sales increase or profit. Sellers frequently mention difficulties with product visibility and search functionality, with one merchant claiming Amazon made their products invisible.
Long-term Amazon sellers are feeling the pinch. They describe unprecedented challenges and express intentions to reduce or eliminate their Amazon operations. One seller with 12 years of experience announced their departure on October 15, 2025.
Amazon sellers face a tough road ahead. Despite Amazon's advertising revenue growth, sellers grapple with economic headwinds, increased competition, and platform challenges. The future of many Amazon businesses hangs in the balance.
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