“Third-party sellers are kicking our first party butt. Badly.” — Jeff Bezos
Source: 2018 Amazon Shareholder Letter, submitted by Jeff@amazon.com Published: April 2019
![](https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff2aa4803-3a2a-4555-9066-8ad30ac5a7d1_800x896.jpeg)
Source: 2018 Amazon Shareholder Letter, submitted by Jeff@amazon.com
Published: April 2019
Physical Gross Merchandise Sales Sold on Amazon by Independent Third-Party Sellers
Circulated: April 11, 2019
The percentages represent the share of physical gross merchandise sales sold on Amazon by independent third-party sellers — mostly small- and medium-sized businesses — as opposed to Amazon retail’s own first party sales.
![](https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fd572a53c-f131-4019-9531-c159b89f2fd8_148x297.png)
Third-party sales have grown from 3% of the total to 58%. To put it bluntly:
Third-party sellers are kicking our first party butt. Badly.