Amazon dominates e-commerce in key markets but faces stiff regional

Amazon maintains its position as the world’s largest e-commerce platform, though its market share varies sharply by region. In Latin America, MercadoLibre holds the top spot, and in Asia, PDD Holdings, Alibaba, and Sea Ltd., operating Shopee, dominate. Even within Europe, Amazon’s influence diminishes where geography or established rivals limit its expansion.

Amazon’s financial strength is concentrated in its five largest markets, which together generate 80% of its $846.1 billion GMV in 2025. Outside these regions, Amazon’s footprint is weaker, and local businesses set the terms. In Poland and the Netherlands, late market entries forced Amazon to compete against well-established players like Allegro and Bol. In Greece, the mountainous terrain and island logistics make Amazon’s fast-delivery model difficult to replicate efficiently.

Customers place an average of 19 orders annually, a frequency far exceeding that of competitors. While individual purchases remain small, averaging $58, the high volume sustains revenue. This trend, often called Amazonification, forces rivals to match service levels or risk losing market share.

Third-party sellers now drive Amazon’s marketplace

In 2025, 67.1% of Amazon’s GMV came from external vendors, including small businesses, brands, and international merchants using its platform. In Asia, this share rises to 83.9%, reflecting the region’s preference for marketplace models over single-brand stores. Europe follows closely at 67.8%, demonstrating the global appeal of a low-overhead, high-selection approach.

Amazon’s customer base differs significantly from that of competitors like Walmart. Shoppers earning over $100,000 annually account for 38.9% of GMV, while the largest age group is 35- to 44-year-olds (19.7%). Younger consumers often see less value in subscriptions, while older shoppers tend to prefer in-store experiences.

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Outside these regions, Amazon’s influence wanes, and local competitors adapt more quickly.

Logistics and speed lock in core markets

Amazon’s operational efficiency in its top markets extends beyond GMV to logistics and delivery speed. In the U.S., UK, Germany, and Canada, its network enables same-day or next-day delivery in over 80% of urban areas, a standard few competitors match. This scale also allows Amazon to undercut rivals on shipping costs, a key factor in attracting both sellers and buyers. However, outside these markets, the infrastructure remains underdeveloped. For example, in Poland, Allegro relies on a denser local delivery network that Amazon has struggled to replicate despite years of expansion.

Data-driven personalization strengthens Amazon’s position in its core regions. Competitors like Zalando or Otto struggle to compete, as their recommendation engines lack comparable user data. Amazon also uses its first-party retail operations, such as private-label brands, to test products before offering them to third-party sellers, creating a feedback loop that refines its marketplace.

Regulatory and labor pressures test Amazon’s model

Despite its strengths, Amazon faces growing challenges. Regulatory scrutiny has intensified, particularly in Europe, where antitrust investigations into its marketplace practices continue. In Germany, authorities are examining whether Amazon’s use of seller data to favor its own retail operations violates fair competition laws. Meanwhile, labor disputes in U.S. fulfillment centers, where workers demand higher wages and better conditions, have disrupted operations during peak seasons. These issues, though not yet critical, expose vulnerabilities in a business model that depends on relentless growth and operational precision.

While 67.1% of GMV now comes from external vendors, Amazon’s revenue share from these sales remains low. In Asia, where third-party sales reach 83.9%, vendors have begun negotiating for lower fees or alternative selling channels. Amazon’s response will determine whether its marketplace remains a dominant growth engine or if it must adjust its revenue model to retain sellers.