STUDY: Nearly 60 Percent of Amazon Sellers Plan to Expand to Other Marketplaces This Year

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Feedvisor’s “The State of the Amazon Marketplace 2017” report reveals Amazon merchants’ selling habits, concerns and plans for the future.

While Amazon has established itself as a clear leader in the eCommerce space, a new Feedvisor report finds that 60 percent of its third-party sellers plan to expand into other marketplaces in 2017.

To illustrate the evolving state of Amazon’s marketplace and shed light on how third-party sellers manage their businesses, Feedvisor, the leader in algorithmic repricing for eCommerce marketplace sellers, surveyed 1,600 Amazon merchants about their selling habits, revenue, concerns, and plans for the future. The State of the Amazon Marketplace 2017 found that:

  • eBay remains the top sales channel besides Amazon: Sixty-five percent of Amazon sellers indicated that they sell on eBay as well. While this makes eBay the second marketplace of choice by a huge margin, that number is down from 73 percent in 2016.
  • is no longer a top priority: Last year, was the most popular platform for expansion, with 27 percent of merchants looking to have a presence there. In 2017 that number has dropped to 22 percent, the fifth most popular site for expansion.
  • Bigger sellers are increasingly focused on review software: Bigger sellers are more likely to use software tools, and this year’s study found that the number of merchants with sales above $2 million using review software has risen to 49 percent, as compared to 36 percent in 2016.

“Amazon will continue to be a dominant force in the retail industry. However, these expansion plans reveal that Amazon sellers recognize the value of diversifying their eCommerce presence,” said Victor Rosenman, CEO of Feedvisor. “While many Amazon merchants sell exclusively on the platform, this year’s shift in expansion plans illustrates the evolving state of online marketplaces, and indicates that sellers are looking to new avenues for business growth.”

Amazon is still growing quickly, with over 50 percent of the sellers surveyed having only been selling on the marketplace for two years or less. The survey took a look at current business models, growth and future pain points of current Amazon sellers. Key findings include:

  • No singular product category is dominant: Home and kitchen goods are the most popular product category among Amazon sellers at 18 percent. However, books and movies (11 percent) and toys and games (10 percent) follow closely among the top three categories.
  • Private label sales continue to play a strong role on Amazon. Nearly one-third of sellers sell at least some private label items, and 18 percent sell private label items exclusively.
  • Primary concerns tie back to Amazon: The top three concerns for sellers are losing seller privileges (52 percent), high fees (50 percent), and that Amazon will compete with them (45 percent), reflecting a degree of uncertainty about the platform.

“As Amazon continues to evolve, sellers on the platform need to evolve as well, otherwise they risk losing revenue and their competitive edge,” said Rosenman. “While many sellers have valid concerns about competition and loss of privilege on the marketplace, they can utilize advanced algorithmic and AI tools to manage their inventory, grow even faster, and prepare their businesses for the future.”

To download The State of the Amazon Marketplace 2017 study, which includes additional insights and resources for growing your Amazon business, click here.

About Feedvisor
Feedvisor is the pioneer of Algo-Commerce — the discipline of using big data and machine learning algorithms to make business-critical decisions for online retailers. Feedvisor’s cloud-based algorithmic repricing and revenue intelligence solutions power millions of pricing decisions daily, providing retailers with actionable insights to maximize profitability and drive their business growth. For more information about Feedvisor, visit

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Kiara Goodwin
Walker Sands Communications
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