If you’ve ever thought about starting an online business, chances are Amazon was the first platform that came to mind. With over 300 million active shoppers and that little yellow Prime badge everybody trusts, it feels like the place to be.
But here’s the real question sellers are asking as they wrap up 2025 and head into 2026: Is selling on Amazon worth it in a crowded, expensive battleground where only big brands seem to survive?
The answer isn’t black and white. Amazon still has tons of opportunities, but the rules of the game have definitely evolved. Think of it like going from a pick-up basketball game to the NBA: same court, way tougher competition. So how do you actually win in this new Amazon era? Let’s dig in.
Why Amazon Is Still Worth It
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The Customer Pool Is Massive
We’re talking about 300M+ shoppers worldwide. Picture it like playing in the biggest stadium you’ve ever seen, except instead of fans, it’s buyers with credit cards ready. And Prime members? They’re the VIP season ticket holders who spend way more than casual fans. That kind of built-in audience is hard to find anywhere else. And here’s the kicker: when someone opens Amazon, they’re not just browsing, they’re ready to buy. You basically skip part of the funnel because shoppers already know what they want; now it’s about convincing them your product is the MVP, the #1 player on the field. That’s exactly where we at Marknology shine, helping brands position their products as the winning choice every time.
2. FBA = Logistics Made Simple
Fulfillment by Amazon (FBA) is like having the best coach and equipment staff backing you up. You handle the playbook (products), and Amazon takes care of the training facility, referees, crowd control, shipping, and customer service on autopilot. Even small brands can look like pros. And for many, the big question is: Can an Amazon FBA business profitable? The answer is yes, when managed strategically.
3. Global Expansion on Tap
Want to go international? Amazon lets you test markets in Europe, Japan, Canada, and beyond. It’s like moving from your local league to playing overseas without having to rebuild the entire team from scratch.
4. Built-In Trust Factor
Prime shoppers believe in Amazon’s reliability, the same way fans trust a champion team to deliver. That trust spills over to you as a seller. That’s not easy when you’re just starting out and still trying to show customers that your brand can be trusted.
So yes, the platform still delivers big perks. But let’s be real, Amazon has evolved a lot since its early gold rush days. The arena is packed, the competition is tougher, and that simply means you need to complement your Amazon game with strong social media, UGC content, and off-platform strategies that drive traffic back to your storefront. When done right, Amazon becomes the stage where your brand plays like a champion team.
The Challenges You Can’t Ignore
Rising Fees
Amazon takes a slice of everything, such as referral fees, FBA fees, and storage fees. Many new sellers ask how much are Amazon seller fees are or how much does Amazon takes from sellers. Those costs are real, but with the right planning, they can be managed. Sellers who track their numbers and build strong pricing strategies can still find healthy margins.
Fierce Competition
You’re not just competing with other sellers, you’re also competing with Amazon itself. Instead of seeing this as impossible, think of it as playing in the big leagues. With a strong brand, differentiated products, and smart positioning, you can stand out from the crowd.
Pay-to-Play Advertising
Organic visibility has become harder to capture. That simply means advertising is part of the playbook. The good news? Smart campaigns do work when structured correctly, and they can put you in front of ready-to-buy customers.
Bad Actors
Hijackers, fake reviews, and return fraud exist, but they are not unbeatable. With vigilance, brand protections, and expert guidance, you can minimize risk and keep your focus on growth.
Strict Policies
Amazon’s rules are strict, but they also create a safer marketplace for customers. With the right partner to guide you, it’s possible to navigate compliance smoothly and keep your business running strong.
The Real Costs of Starting on Amazon
This is where many new sellers get blindsided and ask how much it costs to sell on Amazon or whether is starting an Amazon business worth it. Startup budgets vary by model: under $500 if you’re testing retail or online arbitrage with small test buys, $1K–$3K for wholesale or simple bundles, and $5K–$15K+ if you’re launching a private‑label product with samples, branding, and PPC.
Here’s the reality check:
Core fees you’ll pay on most sales
- Pro seller plan: about $40 per month.
- Referral fee: typically 8%–15% of the total sales price, depending on category.
- FBA fulfillment: pick, pack, and ship fees based on size/weight; expect holiday peak adjustments and special low‑price programs to have their own rules.
- Monthly storage: charged on cubic feet; higher during Oct–Dec, so plan inventory like a coach managing minutes late in the season.
Variable or situational fees to factor in
- Advertising: plan around ~$0.90–$1.10 average CPC as a baseline. Competitive niches can run higher; smart structure keeps ACoS in check.
- Inbound placement service: fees tied to where Amazon positions your units in its network (some waivers or discounts can apply for new selections or certain item types).
- Low‑inventory‑level fee: may apply if you consistently run lean stock; inventory health matters.
- Aged inventory surcharge: This kicks in for inventory that sits too long. Staying under ~181 days on hand is a good habit.
- Returns processing and disposal/removal: if your category has high return rates, build a buffer.
- Prep, labeling, and 3PL: if you don’t do prep yourself, include per‑unit costs for polybags, labels, or bundling.
Upfront one‑time or setup costs are what most new brands forget
- Samples and quality checks: product samples, inspections, and test orders before you scale.
- Brand assets: photography, video, and A+ content; even a lean shoot and design pass is worth budgeting.
- Barcodes and trademarks: GS1 GTINs and trademark filing if you plan to enroll in Brand Registry.
- Freight to FBA: factory to port to fulfillment centers (air vs ocean) plus duties if importing.
The takeaway: treat Amazon like the pro league, not a pick‑up game. Build a simple P&L, model fees at realistic CPCs, and set inventory targets that avoid surcharges. With a clear playbook, the math works, and this is exactly the kind of budgeting and launch planning we help with at Marknology.
Is Amazon Still Profitable? (The Data Speaks)
Many entrepreneurs ask is it profitable to sell on Amazon. According to Jungle Scout’s 2025 Seller Report, most sellers land between 15 and 25% profit margins. That’s solid compared to many retail models.
But here’s the kicker, it usually takes 6–12 months to become profitable. And who succeeds fastest?
Sellers who:
- Pick high-margin, niche products.
- Invest in branding (not just generic reselling).
- Use data to drive ad spend decisions.
- Diversify outside Amazon instead of putting all their eggs in one basket.
Trends Shaping Amazon in 2025
This is where things get interesting:
- TikTok Shop is rising fast. Many brands are testing TikTok alongside Amazon because of the viral discovery potential.
- AI tools are everywhere. From writing listings to optimizing PPC campaigns, AI is changing how sellers operate. But without a human strategy behind it, results fall flat.
- Walmart, Shopify, and other marketplaces are growing. Amazon is still king, but it’s no longer the only place to win.
- Sustainability matters. More shoppers are choosing eco-friendly brands, and Amazon is rewarding sustainable certifications in search rankings.
Amazon isn’t shrinking; it’s evolving into a bigger playing field with new rules. The sellers who succeed are the ones who adapt quickly and treat change as an opportunity.
Strategies to Make Amazon Worth It in 2025
For many, the key question is: Is Amazon FBA worth it? The answer is yes, but you need a clear strategy:
1. Focus on High-Margin Niches
Generic phone cases? Forget it. Look for niches where you can differentiate with branding, design, or bundling.
2. Manage Fees Like a Hawk
Every penny counts. Optimize packaging to avoid oversized fees, track storage costs, and plan inventory smarter. This is how you manage Amazon selling fees and stay profitable.
3. Run Smarter Ads
Don’t just throw money at Sponsored Products. Learn PPC structures, experiment with DSP, and use data-driven campaigns that cut wasted spend. This is how to succeed in selling on Amazon in 2026.
4. Build a Brand Beyond Amazon
This is the big one. Utilize Amazon to acquire customers, but nurture them off-platform through your website, email list, and social media channels. Think of Amazon as the front door, not the whole house.
Ally with experts like Marknology, and you’ll have a playbook designed to shorten the learning curve, avoid costly mistakes, and reach profitability faster. We combine years of Amazon know‑how with real hands‑on execution so your brand doesn’t waste time figuring it out alone. Partnering with us means you get a team that understands the rules of the game and knows how to position your product as the star player from day one.
The Bottom Line
So, is selling on Amazon worth it? Is starting an Amazon business worth it? The short answer is yes, but only if you play it smart.
Amazon is still the world’s biggest digital marketplace, but it isn’t a simple plug-and-play money machine. Think of it as a launchpad, not the entire rocket ship.
And here’s the good news: you don’t have to figure it all out alone.
At Marknology, we live and breathe Amazon. From building killer listings and managing PPC campaigns to scaling brands beyond Amazon into TikTok Shops, Shopify, and more, we guide sellers through every step of the journey.
Selling on Amazon in 2025 is still worth it. The difference between struggling and thriving comes down to having the right strategy and the right team in your corner.
Ready to make Amazon worth it for your business? Work with Marknology, and let us help you turn your e-commerce goals into results.