Amazon 1P Making a Comeback?, Small Sellers Drive Growth, AMZ Growth Segments, Etsy Growth Rebounds - This week in Amazon & eCommerce - May 16

Some go. Some stay. Amazon always seems to win…

1. Amazon is Growing… but the “Where” is Shifting: Amazon’s first quarter of 2026 shows a modest but notable shift in its marketplace dynamics, with third-party sellers accounting for 60% of paid units sold, marking a second consecutive quarterly decline after years of steady growth. [Learn more]

2. Are small businesses getting more… Or were they driven off Amazon? Amazon’s 2025 Small Business Report highlights strong growth among some independent sellers. More than 75,000 sellers surpassed $1 million in annual sales, but since 1P seems to be coming back, one wonders if there are just less people trying... [Learn more]

3. More 1P, True, but What Categories? Amazon reported strong financial performance in the first quarter of 2026, with total sales rising 17% year-over-year to $181.5 billion and net income increasing 77%, driven by growth across all segments, particularly AWS, which expanded 28%. [Learn more]

4. Etsy Shows Early Signs of Marketplace Recovery: Etsy reported moderate growth in the first quarter of 2026, with marketplace GMS increasing 5.5% year-over-year to $2.5 billion, supported by gains in both marketplace and services revenue, particularly from advertising and payments. [Learn more]

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Isaiah Fritz, Joe White and the OSP Team

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