Amazon Drew in One Million New Sellers in 2024
Amazon attracted an impressive one million new sellers in 2024, demonstrating that many still see potential in the platform despite growing hurdles. Slower growth, increasing competition, and the challenge of managing profitability make success on Amazon more complex. This surge in new sellers could also be linked to changes in Amazon’s Vendor program, which has become less predictable over time.
Recently, there’s been a steady stream of reports about Amazon ending Vendor agreements with little warning. In October 2024, for instance, brands received notices of terminations effective in November—right before the critical holiday season. For businesses that rely heavily on Amazon as a key revenue channel, these unforeseen changes can be of great concern to brands. This highlights the importance of diversifying the sales approach instead of putting all their eggs in one basket.
Some of these new sellers may include recently terminated Vendors who’ve shifted to Seller Central to try to maintain their sales volumes. Maintaining both a Vendor account and a Seller account is increasingly seen as a smart strategy to mitigate risk. Typically, Vendors tend to do well with low cost, bulky items, while Sellers usually perform better with high cost, lightweight products. For example, some beverage brands struggle to make the Seller model profitable because their products are both low-priced and heavy to ship. In such cases, a Seller account should not be the primary focus but an opportunity to test and use as a fallback option when needed e.g. during Vendor negotiations. That said, there are always exceptions to this rule.
Despite the challenges, many Sellers have matched or even outperformed Vendors. For brands with a strong product or existing Vendor account, exploring the Seller model can be a practical way to reduce risk. Diversifying your presence on Amazon is no longer just an option—it’s becoming essential. By having a more flexible strategy, brands can stay prepared for unexpected changes and better position themselves for long-term success.
