Amazon’s $190 Billion Engine: The Rise of Third-Party Sellers and What It Means for the Future of Fulfillment

Amazon’s latest earnings call revealed yet another record-breaking milestone, one that didn’t make major headlines but is critical for understanding the future of eCommerce.

62% of all units sold on Amazon in Q4 came from third-party sellers. That’s the highest proportion ever recorded, and it signals a massive shift in how Amazon operates, where revenue comes from, and where the real opportunities lie for logistics and fulfillment providers like MyFBAPrep.

The Genius of Amazon’s Marketplace Model

This statistic isn’t just another footnote in a quarterly earnings report. It’s a fundamental transformation of Amazon’s business model. Here’s what it really means:

1. Zero Cost of Goods Sold (COGS) for Amazon – Because these products aren’t owned by Amazon, the company carries no inventory risk. Whether a third-party seller’s product succeeds or flops, it’s no skin off Amazon’s back.
2. Zero Cost of Inbound Logistics – Unlike traditional retailers that manage supply chain costs, Amazon doesn’t pay to move these products into its fulfillment centers. The burden is entirely on the seller.
3. Revenue on Every Touchpoint – Amazon charges sellers for everything:
   • Fulfillment Fees – If sellers want access to Prime customers (which make up the vast majority of purchases), they must use Fulfilled by Amazon (FBA).
   • Storage Fees – Amazon charges sellers for storing inventory in FBA warehouses.
   • Advertising Fees – Amazon’s pay-to-play model means sellers have to bid for visibility on the platform.
   • Referral Fees – Amazon takes a cut of every sale, typically around 15%.

Amazon has effectively created a system where third-party sellers do all the heavy lifting like sourcing, importing, and warehousing goods, while Amazon monetizes each step of the process.

Why This Matters for the Future of Fulfillment

For logistics providers, this shift to a third-party seller-dominated marketplace is a massive opportunity. With Amazon outsourcing more of its marketplace, sellers need better solutions for prepping, storing, and shipping their inventory efficiently. That’s where MyFBAPrep comes in.

Amazon’s fulfillment network is built for volume, not for tailored service. Sellers need an experienced partner that can provide:

• Flexible warehousing solutions to manage inventory efficiently outside of Amazon’s expensive storage fees.
• FBA prep services to ensure products meet Amazon’s stringent requirements without delays.
• Omnichannel fulfillment to support sellers as they expand beyond Amazon and into DTC, Walmart, and other sales channels.

With billions of dollars in revenue now tied to third-party sellers, the demand for specialized fulfillment services has never been higher. Amazon’s marketplace model is thriving, and MyFBAPrep is positioned to be the critical infrastructure that helps sellers scale within it.

The bottom line? Amazon has turned its marketplace into a high-margin cash machine with third-party sellers footing the bill. But those same sellers are the backbone of Amazon’s eCommerce dominance, and they need best-in-class logistics partners to stay competitive. As Amazon’s marketplace evolves, so do the opportunities for fulfillment providers that understand the ecosystem.

The future of eCommerce isn’t just Amazon, it’s the sellers who power its marketplace. And the logistics providers who power those sellers will win big in the years ahead.