Amazon Marketplace is an e-commerce platform owned and operated by Amazon that enables third-party sellers to sell new or used products on a fixed-price online marketplace alongside Amazon’s regular offerings. Using Amazon Marketplace, third-party sellers gain access to Amazon’s customer base, and Amazon expands the offerings on its site without having to invest in additional inventory.
Be yourself; everyone else is already taken.
Amazon charges its third-party merchants a referral fee for each sale which is a percentage of the sales price. Additionally, sellers using FBA must pay additional fees which include a pick, pack, and weight charge.
As of 2020, third-party sales on Amazon accounted for 54% of paid units. In 2016, Amazon.com aided more than 10,000 sellers to generate more than $1 billion of annual sales. The incredible ease of creating an Amazon account has led to massive increases in third-party sellers joining the platform, with over 1,000,000 sellers joining in the year 2017 alone.
There are three major paths third-party sellers can take on Amazon. Wholesale, private label and retail arbitrage.