Independent merchants who rely on Amazon are increasingly turning to alternative sales channels as growing marketplace fees put pressure on profitability, according to Forbes.
Many small business owners say the platform, once seen as one of the easiest ways to launch and scale an online business, has become significantly more expensive in recent years.
Rising Costs Push Sellers to Diversify
According to Forbes, a growing number of third-party sellers are expanding their presence to platforms such as TikTok Shop, Walmart Marketplace, Target Plus and independent online stores to reduce their dependence on Amazon.
Many entrepreneurs are also investing in direct-to-consumer strategies through platforms such as Shopify, allowing them to retain greater control over customer relationships and profit margins.
The shift reflects mounting concerns about the cost of doing business on Amazon, particularly as sellers seek new ways to sustain growth and protect earnings.
More Than Half of Revenue Can Go to Fees
Forbes reports that Amazon has gradually introduced additional charges for third-party merchants since the end of the COVID-19 pandemic, increasing the overall cost of selling on the platform.
Some sellers claim they now return more than 50 cents of every dollar in revenue to Amazon through a combination of marketplace fees, fulfillment costs, advertising expenses and other charges.
The growing financial burden has led many businesses to rethink their sales strategies and explore new channels where operating costs may be lower.
While Amazon remains one of the world’s largest online marketplaces and an essential source of traffic for many brands, sellers increasingly view diversification as necessary to maintain profitability and reduce business risk.
The trend highlights the evolving dynamics of e-commerce, where merchants are seeking a balance between access to large customer bases and sustainable operating margins.
Photo: SwipeInsight
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