Our infographic this week is a straight line, but it’s an important one.
Amazon flooded with merchants
It shows how the number of Amazon sellers has doubled since 2017, from 3M to 6M.
The number of Shopify merchants hovers around 1.7 million — not even close. In fact, Shopify today has fewer merchants than Amazon did in 2017.
Is Amazon getting too competitive?
All that competition drives profits down, as does Amazon policy: In 2019, the company took a 27% cut of all its platform revenues, up 42% from 2014, The New York Times reported.
But so far, the scale of potential sales on the platform has outweighed its cost.
If it didn’t, the number of the sellers on the platform would start to plateau — and the chart wouldn’t show a line straight up and to the right.