How many sellers control half of Amazon's US marketplace?

As of February 2026, approximately 7,760 sellers (the top 1.6%) generate 50% of all US third-party GMV on Amazon, which totals roughly $300 billion annually.

What is the "Great Compression" on Amazon?

The "Great Compression" refers to the accelerating consolidation of Amazon's marketplace, where rising fees, tariffs, and advertising costs are squeezing smaller sellers out of competitive categories while larger sellers capture an increasing share of GMV.

What is the average revenue of a top Amazon seller?

The average revenue per seller in the top 1.6% cohort is approximately $20 million annually, which has doubled from about $10 million three years ago.

How can smaller sellers compete in a consolidating marketplace?

Smaller sellers should focus on profitability over volume, build operational moats through efficient supply chains, and use data analytics to find underserved niches where larger sellers aren't competing aggressively.

Operations

Top 1.6% of Sellers Now Drive 50% of Amazon's 3P GMV

Fewer than 8,000 sellers generate half of Amazon's ~$300B US third-party GMV. The "Great Compression" is accelerating as fees, tariffs, and ad costs squeeze smaller operators out of competitive categories.

AntoineCEO at Nova Analytics

Mar 3, 2026 · 5 min read · 953 words

Updated March 3, 2026

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What's Happening

Amazon's marketplace is consolidating faster than most sellers realize. According to Marketplace Pulse data published February 12, 2026, just 7,760 sellers now generate 50% of all US third-party GMV. That's roughly $150 billion in annual sales controlled by the top 1.6% of active sellers. Similar moves have hit the dashboards we maintain for agencies before the official Amazon comms even land.

Three years ago, that same 50% threshold required about 15,000 sellers. The number has nearly halved. Average revenue per top-tier seller has doubled to approximately $20 million annually. US-based sellers make up 55% of this elite cohort but control 67% of the GMV, highlighting a geographic concentration on top of the seller concentration.

Marketplace Pulse calls this the "Great Compression." It's driven by three compounding forces: rising Amazon fees that squeeze smaller operators, escalating ad costs that favor sellers with deeper pockets, and tariff pressures that disproportionately hit importers without scale. The result is a marketplace that's growing overall but shrinking in terms of who captures the value.

Top Sellers

7,760

Control 50% of US 3P marketplace GMV

GMV Concentration

50%

Of ~$300B US 3P GMV from top 1.6%

Avg Revenue per Top Seller

~$20M

Doubled from ~$10M three years ago

The Concentration Data

The numbers paint a clear picture of how top-heavy Amazon's marketplace has become. Here's the full breakdown of seller concentration tiers:

Seller Count	% of Active Sellers	Share of US 3P GMV	Est. GMV per Seller
111	0.02%	10%	~$270M
1,020	0.2%	25%	~$74M
7,760	1.6%	50%	~$20M
~480,000	98.4%	50%	~$310K

Geographic Breakdown

US-based sellers represent 55% of the top cohort but generate 67% of the GMV. Chinese sellers, while numerous in the broader marketplace, are underrepresented at the very top. This suggests that proximity to US consumers, faster shipping, and stronger brand-building capabilities give domestic sellers an edge at scale.

What the "Great Compression" Means for You

Smaller Sellers Are Getting Squeezed

The math is brutal. If you're doing under $1M annually on Amazon, you're competing against sellers who can absorb fee increases, outbid you on ads, and negotiate better supplier terms. The fixed costs of selling on Amazon (software, compliance, advertising minimums) consume a much larger percentage of revenue for smaller sellers. This doesn't mean small sellers can't succeed. It means they need to be more strategic about where they compete.

Profitability Beats Volume

The sellers in the top 1.6% didn't get there by chasing revenue at any cost. They got there by building efficient operations with strong unit economics. In a consolidating market, the sellers who prioritize profit margins over top-line growth are the ones who survive. Revenue without profit is just a more expensive way to go out of business.

Niches Still Work

Concentration at the top doesn't mean opportunity has vanished. It means broad, commodity categories are dominated by mega-sellers. The opportunity for mid-market sellers ($500K to $5M) lies in specialized niches with defensible differentiation: proprietary products, strong brand loyalty, or underserved subcategories. Use data to find where the big players aren't looking.

What You Should Do Now

1.
Focus on Profitability Over Volume
Stop measuring success by revenue alone. Track net profit per SKU after all fees, ad costs, returns, and COGS. Cut products that aren't contributing to the bottom line. The sellers getting squeezed out are typically the ones who couldn't tell which products were actually making money.
2.
Build Operational Moats
Efficient supply chains, fast inventory turns, and low return rates compound into meaningful advantages over time. Invest in better forecasting to avoid stockouts and overstock fees. Negotiate better terms with suppliers by committing to larger, predictable orders. These operational advantages are what separate the top 1.6% from everyone else.
3.
Use Data to Find Underserved Niches
The mega-sellers dominate high-volume categories. Your advantage is agility. Use custom analytics to identify subcategories where competition is lower, margins are better, and you can build a defensible position. Look for products where the top sellers are underinvesting in listing quality or ad coverage.

How Nova Helps

Compete Smarter in a Consolidating Market

Nova's Profit and Loss Analytics give you the product-level visibility that top sellers rely on. Know your true margins after every fee, ad dollar, and cost input. You can't compete with $20M sellers on budget. You can compete on efficiency.

Winners and Losers automatically identifies which products are driving profit and which are dragging you down. In a compressed market, cutting losers fast is the difference between growing and shrinking.

Use Day-to-Day Performance tracking to spot trends before they become problems. When the market is consolidating, you can't afford to wait for monthly reports to make decisions.

Sources

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Frequently Asked Questions

Common questions about this topic

As of February 2026, approximately 7,760 sellers (the top 1.6%) generate 50% of all US third-party GMV on Amazon, which totals roughly $300 billion annually.
The "Great Compression" refers to the accelerating consolidation of Amazon's marketplace, where rising fees, tariffs, and advertising costs are squeezing smaller sellers out of competitive categories while larger sellers capture an increasing share of GMV.
The average revenue per seller in the top 1.6% cohort is approximately $20 million annually, which has doubled from about $10 million three years ago.
Smaller sellers should focus on profitability over volume, build operational moats through efficient supply chains, and use data analytics to find underserved niches where larger sellers aren't competing aggressively.

About the Author

Antoine

CEO at Nova Analytics

Antoine founded Nova Analytics to empower Amazon sellers with enterprise-grade analytics. He specializes in data architecture and building scalable solutions for e-commerce businesses.

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What's Happening

Top Sellers

GMV Concentration

Avg Revenue per Top Seller

The Concentration Data

Geographic Breakdown

What the "Great Compression" Means for You

Smaller Sellers Are Getting Squeezed

Profitability Beats Volume

Niches Still Work

What You Should Do Now

How Nova Helps

Compete Smarter in a Consolidating Market

Sources

Frequently Asked Questions

How many sellers control half of Amazon's US marketplace?

What is the "Great Compression" on Amazon?

What is the average revenue of a top Amazon seller?

How can smaller sellers compete in a consolidating marketplace?

Antoine

Related guides

See your Amazon business clearly.

What's Happening

Top Sellers

GMV Concentration

Avg Revenue per Top Seller

The Concentration Data

Geographic Breakdown

What the "Great Compression" Means for You

Smaller Sellers Are Getting Squeezed

Profitability Beats Volume

Niches Still Work

What You Should Do Now

How Nova Helps

Compete Smarter in a Consolidating Market

Sources