Is Amazon still profitable for sellers in 2025?

Yes, for established sellers. While new registrations dropped, the 100,000+ sellers earning over $1 million annually (up from 60,000 in 2021) shows profitability is concentrating among experienced operators.

Why are fewer sellers joining Amazon?

Multiple factors: increased fees across FBA, storage, and AWD; tariff uncertainty; mandatory advertising spend for visibility; and AI-powered competition from established sellers raising the baseline for success.

Is Amazon less competitive now?

In some ways, yes. Active sellers dropped from 2.4 million in 2021 to 1.65 million in 2025, while GMV continues growing. Traffic per active seller is up 31%, meaning survivors capture more opportunity.

Operations

Amazon Seller Registrations Hit Decade Low

Only 165,000 new sellers registered in 2025, the lowest since 2015. But fewer competitors means more opportunity per surviving seller. Traffic per seller up 31%, over 100K sellers now earn $1M+.

AntoineCEO at Nova Analytics

Jan 27, 2026 · 4 min read · 863 words

Updated January 27, 2026

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What's Happening

Amazon.com registered just 165,000 new sellers in 2025. That's the lowest number since Marketplace Pulse began tracking in 2015, and a 44% drop from 2024. Welcome to the Great Compression.

But here's the twist: this is actually good news for established sellers. Active seller counts have dropped from 2.4 million in 2021 to 1.65 million today. Yet Amazon's GMV keeps growing. That means more revenue per surviving seller. Traffic per active seller is up 31%.

The era of easy entry is over. What remains is an increasingly professional marketplace where capital, analytics, and operational excellence determine who wins.

The Numbers Tell the Story

New Registrations

165K

44% decline from 2024

Active Sellers

1.65M

Down from 2.4M in 2021

Traffic Per Seller

+31%

More eyeballs per survivor

Million-Dollar Sellers

100K+

Up from 60K in 2021

Why New Registrations Collapsed

Multiple forces converged to make 2025 the hardest year ever to start selling on Amazon:

Fee Increases Across the Board

FBA fees, storage fees, referral fees, and now AWD fees have all increased. The cumulative effect squeezes margins for new entrants without established supplier relationships or volume discounts.

Tariff Uncertainty

Ongoing trade policy volatility makes it risky to commit to inventory from China or other manufacturing hubs. New sellers can't absorb sudden tariff changes the way established operators with cash reserves can.

Advertising Is Now Mandatory

Organic visibility has collapsed. Without PPC spend, products don't get discovered. New sellers face a chicken-and-egg problem: no sales history means inefficient ads, inefficient ads mean no profit to reinvest.

AI Raised the Baseline

Established sellers using AI for listing optimization, repricing, and inventory management have widened the gap. New entrants face competition from operators with sophisticated tooling they can't afford.

The Competition Paradox

Here's the counterintuitive reality: Amazon is actually less competitive than it was four years ago. Fewer sellers are chasing growing GMV. The math works in your favor if you're already established.

More Revenue Per Seller

Amazon's total GMV continues to grow while seller count shrinks. Each surviving seller captures a larger slice.

Experience Matters More

60% of the top 10,000 sellers registered before 2019. Tenure and operational knowledge are now competitive advantages.

The question isn't whether Amazon is worth it. It's whether you're positioned to take advantage of the consolidation happening right now.

Who's Winning Now

Established, Well-Capitalized Operators

Sellers with cash reserves can weather fee increases, invest in advertising during competitive lulls, and negotiate better supplier terms. Capital is the new moat.

Analytics-Focused Sellers

Those who invested in analytics and profit tracking can identify winning products, cut losers fast, and optimize ad spend. Data-driven decisions separate survivors from casualties.

Multi-Marketplace Sellers

Diversified revenue streams across Amazon, Walmart, TikTok Shop, and DTC reduce dependence on any single platform's fee changes. Resilience comes from distribution.

What This Means for You

1.
Stop Competing on Entry-Level Products
Low-barrier categories are bloodbaths. Move upmarket where capital requirements and operational complexity create natural moats against new competition.
2.
Invest in Operational Efficiency
Analytics, automation, and optimization tools aren't optional anymore. The sellers surviving the compression are the ones who know their numbers cold and act on them.
3.
Build Capital Reserves
Fee volatility is the new normal. Sellers who can absorb a 10-20% cost increase without panicking have staying power that distressed competitors lack.
4.
Focus on Defensible Niches
Barriers to entry matter more than ever. Brand Registry, patents, exclusive supplier relationships, and category expertise create advantages that new sellers can't easily replicate.

How Nova Helps

Track True Profitability

Nova's Profit & Loss dashboard shows you exactly which products are profitable after all fees, advertising, and COGS. No guessing. Make decisions based on real margin data.

Identify Winners and Losers

The Winners & Losers feature surfaces your best and worst performers automatically. Double down on what works, cut what doesn't, before losses compound.

Sources

See your Amazon performance in Nova.

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Frequently Asked Questions

Common questions about this topic

Only 165,000 new sellers registered on Amazon.com in 2025, the lowest number since Marketplace Pulse began tracking in 2015. This represents a 44% decline from 2024.
Yes, for established sellers. While new registrations dropped, the 100,000+ sellers earning over $1 million annually (up from 60,000 in 2021) shows profitability is concentrating among experienced operators.
Multiple factors: increased fees across FBA, storage, and AWD; tariff uncertainty; mandatory advertising spend for visibility; and AI-powered competition from established sellers raising the baseline for success.
In some ways, yes. Active sellers dropped from 2.4 million in 2021 to 1.65 million in 2025, while GMV continues growing. Traffic per active seller is up 31%, meaning survivors capture more opportunity.

Verified Sources

All information verified from official Amazon sources and trusted industry analysts as of publication date.

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

The Numbers Tell the Story

New Registrations

Active Sellers

Traffic Per Seller

Million-Dollar Sellers

Why New Registrations Collapsed

Fee Increases Across the Board

Tariff Uncertainty

Advertising Is Now Mandatory

AI Raised the Baseline

The Competition Paradox

Who's Winning Now

Established, Well-Capitalized Operators

Analytics-Focused Sellers

Multi-Marketplace Sellers

What This Means for You

How Nova Helps

Track True Profitability

Identify Winners and Losers

Sources

Frequently Asked Questions

How many new Amazon sellers registered in 2025?

Is Amazon still profitable for sellers in 2025?

Why are fewer sellers joining Amazon?

Is Amazon less competitive now?

Verified Sources

Antoine

Related guides

See your Amazon business clearly.

What's Happening

The Numbers Tell the Story

New Registrations

Active Sellers

Traffic Per Seller

Million-Dollar Sellers

Why New Registrations Collapsed

Fee Increases Across the Board

Tariff Uncertainty

Advertising Is Now Mandatory

AI Raised the Baseline

The Competition Paradox

Who's Winning Now

Established, Well-Capitalized Operators

Analytics-Focused Sellers

Multi-Marketplace Sellers

What This Means for You

How Nova Helps

Track True Profitability

Identify Winners and Losers

Sources