When I launched my first Amazon store over a decade ago, I had high hopes, and it wasn’t that hard to see why. Back then, competition wasn’t nearly as intense, my niche was still fresh, social media was just starting to boom, and the marketplace wasn’t as crowded. It felt like the perfect time to jump in.
Fast forward to today, and things look a whole lot different. The landscape has evolved, and with it, the challenges of selling on Amazon. More sellers, stricter policies, rising fees, and ever-changing algorithms make it harder than ever to stay ahead.
On the flip side, the platform has also introduced powerful tools, new ad strategies, and expanded fulfillment options that give sellers more ways to succeed.
But with so many moving parts, it’s not as simple as just listing a product and waiting for sales to roll in. Success now requires a sharp strategy, a solid brand, and a willingness to adapt to constant changes.
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Amazon’s marketplace is more saturated than ever, with increased competition from major brands, Chinese manufacturers, and Amazon’s own private-label products.
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Finding success in 2025 requires selling in underserved niches like eco-friendly products, pet accessories, health innovations, and personalized items.
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Building a strong brand identity, investing in advertising, and leveraging external traffic sources like TikTok and YouTube are now essential for growth.
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AI-powered tools like Helium 10 and Jungle Scout help sellers optimize pricing, track trends, and refine advertising strategies to stay competitive.
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Selling on Amazon is still profitable, but it now requires a strategic, multi-channel approach rather than relying solely on FBA for success.
So, whenever I speak at conventions or chat with eager new entrepreneurs, one question always comes up: Is selling on Amazon still worth it in 2025? Since it’s clearly on so many minds, I figured it was time to share my honest take in today’s blog.
How saturated is Amazon today?
If you’ve spent any time researching Amazon FBA in 2025, you’ve probably heard the same warning over and over: The market is too saturated. And there’s some truth to that.
Recent statistics show that Amazon has over 9.7 million registered sellers, with 2 million actively selling products. So, before you create an Amazon seller account, know that the competition is fierce, especially in popular categories like electronics, beauty, and home goods.
The problem isn’t just the sheer number of sellers—it’s also the rise of Chinese manufacturers selling directly to consumers. In 2024, more than 60% of Amazon’s top sellers were based in China, cutting out middlemen and driving prices lower than ever.
This means private-label sellers who rely on third-party manufacturers face tighter margins and a tougher fight for visibility.
Amazon’s own expanding private-label business also adds another layer of competition. The company has been quietly growing its in-house brands, with over 100 private-label lines, ranging from Amazon Basics to household names in fashion and home decor.
While some of these brands struggle (like Amazon’s decision to cut some of its clothing lines), they still pose a challenge for small sellers.
If I sell in popular categories, what am I up against?
If you’re thinking about selling in categories like electronics, clothing, or beauty, you need to be ready for an uphill battle. These are some of the most cutthroat niches on Amazon, dominated by major brands, Chinese manufacturers, and resellers who can afford razor-thin margins.
Take electronics, for example. According to Jungle Scout, electronics consistently rank among the most competitive and least profitable categories for new sellers. The problem? High return rates, constant technological updates, and price wars make it difficult to maintain steady profits.
Clothing isn’t much easier. The fashion industry on Amazon has exploded, with millions of listings competing for attention. The platform also introduced “Amazon Fashion” and premium brand partnerships, pushing smaller sellers to the sidelines.
If you’re planning to sell generic or private-label apparel, your biggest challenge will be branding—because without a strong identity, you’ll get buried under thousands of similar listings.
That said, if you can carve out a niche within these categories—such as sustainable tech accessories, limited-edition streetwear, or hyper-targeted beauty products—you might still find success. The key is differentiation.
What niche or product category should I look at if I’m just starting now?
Choosing the right niche is crucial for cutting through the noise in Amazon’s crowded marketplace. The best opportunities aren’t necessarily in the most crowded categories but in emerging trends and underserved markets—places where demand is rising, but competition isn’t suffocating.
One area seeing explosive growth is eco-friendly and sustainable products. More consumers are prioritizing sustainability, and Amazon has expanded its “Climate Pledge Friendly” program to highlight environmentally conscious products.
Biodegradable alternatives, reusable goods, and plastic-free packaging are no longer just nice-to-have—they’re expected by a growing segment of buyers looking to shop responsibly. If you can tap into this shift with well-branded, high-quality eco-friendly products, there’s an eager audience waiting.
Another booming market is pet accessories and specialized pet food. With pet industry sales projected to hit $210 billion by 2030, demand for unique, high-quality pet products has never been stronger.
Shoppers are looking beyond basic collars and chew toys—they want personalized pet gear, smart pet tech, and high-nutrition pet foods tailored to specific breeds or dietary needs. If you can offer something fresh in this space, you’re entering a market where people are willing to spend big.
Health and wellness innovations are also on the rise. From niche supplements and ergonomic accessories to smart home fitness equipment, consumers are investing in their well-being more than ever.
The market for stress relief, posture correction, and at-home fitness solutions has continued to grow, especially as more people work remotely and focus on holistic health. This is a space with room for creativity and differentiation.
Then there’s the rise of personalized and custom-made items. While Amazon isn’t known for handmade goods like Etsy, customized products—whether it’s engraved gifts, print-on-demand apparel, or unique branded merchandise—are carving out a solid niche.
Consumers are looking for items that feel exclusive, which makes this an opportunity for sellers who can offer personalization without excessive production costs.
Lastly, DIY and home improvement tools are seeing steady demand. As more people take on home renovations and creative hobbies, niche hardware, crafting tools, and home automation accessories are becoming increasingly popular.
Whether it’s high-quality woodworking tools or beginner-friendly crafting kits, this space offers a chance to serve a hands-on audience looking for reliable, innovative products.
The key to success in 2025 and beyond is identifying gaps in the market, differentiating your brand, and understanding what modern consumers truly want.
Compared to before, what should I invest in now to get ahead of the competition?
A decade ago, success on Amazon was fairly straightforward—create an Amazon Seller Central USA account, launch your product, optimize and promote your listing, and voilà, you’re set up for success. But in 2025, that’s just the foundation—you need much more to stand out.
One of the biggest game changers is branding. Selling generic, unbranded products is no longer a sustainable strategy. Consumers are increasingly drawn to businesses that offer a unique identity, a compelling story, and a strong value proposition.
Custom packaging, a polished social media presence, and a well-defined brand voice are no longer optional—they’re essential. Take Dr. Squatch, for example. What started as a small soap brand exploded into a multi-million-dollar business, thanks to clever branding and direct-to-consumer marketing.
Their product isn’t radically different from other natural soaps, but their branding—quirky, masculine, and humorous—set them apart from the competition.
Advertising has also become a non-negotiable investment. Amazon’s cost-per-click (CPC) rates have increased by nearly 50% year over year, making it harder to rely on organic rankings alone.
As a neophyte online seller, you must allocate a significant portion of their budget to Amazon PPC campaigns, as well as external traffic sources like TikTok, Instagram, and YouTube. Short-form video content, influencer partnerships, and viral marketing are proving to be powerful tools in driving external traffic to Amazon listings.
For instance, brands like Govee and Wyze have leveraged YouTube and TikTok creators to generate buzz for their smart home products, leading to explosive sales growth.
Beyond attracting customers, retaining them is just as important. Customer experience and loyalty programs are becoming critical differentiators. High ratings and repeat customers can make or break a seller’s ranking on Amazon.
This means going the extra mile—improving packaging, providing top-tier customer service, and even offering small loyalty incentives, like discounts for repeat purchases or exclusive content.
Amazon’s “Subscribe & Save” program has been an incredibly profitable tool for sellers in categories like supplements, pet food, and household essentials, encouraging recurring revenue instead of one-time purchases.
Another major shift is the rise of AI-powered tools that help sellers make data-driven decisions. Platforms like Helium 10, Jungle Scout, and Perpetua now offer sophisticated analytics that track trends, optimize pricing, and refine advertising strategies in real-time.
Some sellers are even integrating ChatGPT-powered listing optimizers to enhance their product descriptions, ensuring their listings are fully optimized for conversions.
Amazon itself has been leaning into AI with automated ad placements and predictive inventory management, making it clear that those who leverage these tools will have a competitive edge.
In short, selling on Amazon in 2025 and beyond requires more than just a good product and an optimized listing. You need a well-defined brand, a smart advertising strategy, a focus on customer retention, and AI-driven insights to stay ahead.
Those who fail to invest in these areas will struggle to keep up in an increasingly sophisticated Amazon marketplace.
So, is it still worth it or should I sell my products elsewhere?
The truth? Selling on Amazon is still profitable—but it’s no longer the effortless money-maker it once was. If you’re willing to adapt, innovate, and put in the work, it can still be a great marketplace. However, if you’re looking for a passive, hands-off income stream, you might be better off exploring alternatives.
The biggest shift is that Amazon has evolved from an open marketplace where anyone with a good product could succeed to a pay-to-play environment where branding, advertising, and external traffic dictate who wins.
The days of launching a generic product, slapping a label on it, and raking in sales are over. Between rising fulfillment fees, stricter compliance rules, and increased competition from manufacturers selling directly, you must be more strategic than ever.
The success stories in 2025 aren’t the ones blindly following old FBA playbooks—they’re the ones treating their Amazon store like a real business, complete with marketing budgets, omnichannel strategies, and strong customer retention plans. If that sounds like something you’re willing to take on, Amazon is still an incredibly powerful sales channel.
But if you’re feeling boxed in by Amazon’s rules and prefer a longer-term, brand-focused approach, it might be worth looking elsewhere. Platforms like Shopify, Walmart Marketplace, TikTok Shop, and even direct-to-consumer models offer more control, lower fees, and the ability to build a brand without Amazon’s ever-changing policies.
Many sellers are now diversifying, using Amazon as just one of many sales channels rather than putting all their eggs in the FBA basket. The reality is, Amazon’s dominance won’t disappear anytime soon—but whether it’s still the best place to sell depends on your business goals and how much control you want over your success.
