What Is Amazon Marketplace? How It Works for Buyers and Sellers

1. What Is Amazon Marketplace?

Amazon Marketplace is Amazon’s third-party selling platform, where independent businesses and individual sellers offer products to customers alongside products sold directly by Amazon. It allows sellers to reach customers through Amazon’s shopping website without building their own online store.

Amazon Marketplace isn’t a separate website. When you shop on Amazon.com, you’re browsing products sold by both Amazon and independent sellers through the same search results, product pages, and checkout system.

For example, suppose you’re purchasing a coffee maker on Amazon. The product page might display Sold by ABC Kitchen Store and Ships from Amazon. This means ABC Kitchen Store is the independent seller, while Amazon handles the order’s fulfillment. If the page says Sold by Amazon.com, Amazon is the retailer selling that product.

For sellers, Amazon provides the marketplace infrastructure, including product listings, checkout, and payment processing. Sellers manage their products, pricing, and inventory and can either ship orders themselves or use Amazon’s fulfillment services.

According to Amazon’s 2025 Small Business Empowerment Report, more than 60% of sales in Amazon’s store come from independent sellers, most of which are small and medium-sized businesses.

Understanding how these sellers and Amazon work together explains how Amazon Marketplace operates.

2. How Does Amazon Marketplace Work?

Amazon Marketplace connects independent sellers with customers through Amazon’s shopping platform. Sellers provide the products and manage their offers, while Amazon handles the website, checkout, and payment processing.

Here’s how a typical Marketplace transaction works.

Step 1. Sellers List Their Products

A seller creates an Amazon selling account and lists products through Amazon Seller Central.

If the product already exists in Amazon’s catalog, the seller can add an offer to its existing product page. Otherwise, an eligible seller can create a new listing.

Sellers manage their prices, product availability, and fulfillment arrangements, subject to Amazon’s selling policies.

Step 2. Customers Find and Purchase Products

Customers browse Amazon or search for products as they normally would.

For example, suppose a customer purchases a desk lamp for $30 from an independent seller called ABC Home Store.

The customer adds the product to their cart and completes payment through Amazon’s checkout. They don’t need to visit ABC Home Store’s website or send payment directly to the seller.

Step 3. Amazon or the Seller Ships the Order

How the product reaches the customer depends on the fulfillment method.

• Fulfillment by Amazon (FBA): The seller sends inventory to Amazon’s fulfillment centers. Amazon stores, packs, and ships the products and handles order-related customer service and returns.
• Fulfilled by Merchant (FBM): The seller stores the inventory and arranges shipping, either directly or through a fulfillment provider.

Customers can identify the arrangement by checking the Sold by and Ships from information on the product page.

Step 4. Amazon Processes the Seller’s Payment

Amazon collects the customer’s payment and records the sale in the seller’s account.

It deducts applicable charges, such as referral fees, fulfillment fees, refunds, and other account expenses.

Amazon generally settles seller accounts every two weeks and transfers available funds to the registered bank account. Some funds may remain temporarily reserved, so sellers don’t necessarily receive payment immediately after each order.

What Does Amazon Handle vs. the Marketplace Seller?

The key distinction is that Amazon provides the marketplace, but independent sellers operate their own businesses within it. Amazon may handle payment processing and fulfillment without being the actual seller of the product.

3. Amazon Marketplace vs Amazon Retail: What’s the Difference?

Amazon operates as both an online retailer and a marketplace for independent sellers. Customers shop through the same Amazon website, but the business responsible for selling a product can be different.

The main difference is who sells the product to the customer and who is responsible for the inventory.

Amazon Retail (First-Party or 1P)

Amazon Retail refers to products Amazon purchases from manufacturers, brands, or distributors and resells directly to customers.

For example, Amazon might purchase 1,000 coffee makers from a manufacturer at wholesale prices, store them in its fulfillment network, and sell them through Amazon.com.

In this arrangement, Amazon is the retailer. It manages the retail selling price, customer checkout, inventory fulfillment, and order-related customer service.

Brands and distributors that supply products directly to Amazon generally manage these wholesale relationships through Amazon Vendor Central, an invitation-only platform.

Amazon Marketplace (Third-Party or 3P)

Amazon Marketplace allows independent businesses to sell products directly to customers through Amazon’s shopping website.

For example, a kitchenware brand might list its own coffee maker for $49.99 on Amazon. The brand manages its selling price and inventory, while Amazon provides the marketplace and checkout system.

The seller can ship orders independently or use Fulfillment by Amazon (FBA).

Unlike Amazon Retail, the independent seller remains responsible for its selling business, product compliance, pricing, and applicable marketplace fees.

How to Tell Who Is Selling an Amazon Product

You can identify the seller by checking the Sold by and Ships from information near the purchasing options on an Amazon product page.

A product marked Ships from Amazon isn’t necessarily sold by Amazon. The Sold by field identifies the seller, while Ships from indicates who handles fulfillment.

This distinction matters because the same product can be offered by Amazon Retail and several Marketplace sellers at different prices and with different delivery options.

4. How Do Product Listings and the Featured Offer Work?

One of the important features of Amazon Marketplace is that multiple sellers can offer the same product through a single product detail page.

Instead of creating separate pages for identical products, Amazon combines eligible seller offers under an existing product listing. This makes it easier for customers to compare prices, delivery options, and sellers before purchasing.

One Product Page, Multiple Sellers

Every product in Amazon’s catalog has a unique Amazon Standard Identification Number (ASIN). The product detail page contains information such as the title, images, specifications, reviews, and description.

For example, suppose three independent sellers offer the same branded coffee maker. They can share one product page while providing different purchasing options.

These are hypothetical offers used to explain how Amazon Marketplace works.

Each seller manages its own price, inventory, product condition, and fulfillment arrangements. However, the underlying product information is generally shared across the listing.

Customers can review competing offers through the Other sellers on Amazon section or the available offer display.

What Is the Amazon Featured Offer?

The Featured Offer, previously called the Buy Box, is the purchasing option Amazon prominently displays alongside the Add to Cart and Buy Now buttons.

Amazon evaluates competing offers using factors such as:

• Total price, including applicable shipping charges.
• Delivery speed and shipping options.
• Seller performance and customer service.
• Inventory availability.
• Applicable return options.

The lowest-priced seller doesn’t automatically receive the Featured Offer. For example, Amazon may feature a $49.99 offer with faster delivery instead of a $47.99 offer with a longer delivery estimate.

Amazon may display more than one Featured Offer or rotate qualifying offers when several options are similarly competitive.

Important 2026 update: As of September 2026, Amazon no longer maintains a separate seller-level Featured Offer eligibility requirement in the US. Offers from all sellers can be evaluated, but only competitive offers that meet Amazon’s customer experience requirements can be featured.

For sellers, the Featured Offer matters because it places their purchasing option prominently on the product page. However, customers can still purchase from other sellers even when their offers aren’t featured.

This shared-listing system is a major difference between Amazon Marketplace and an independent online store, where a business generally controls its own product pages and purchasing options.

5. Who Can Sell on Amazon Marketplace?

Amazon Marketplace is open to individuals, small businesses, established brands, and manufacturers. You don’t need to own a registered company or manufacture your own products to become a third-party seller.

However, every seller must complete Amazon’s account verification process and meet the requirements for the products they intend to sell.

Types of Amazon Marketplace Sellers

There are four common types of sellers:

• Individual sellers: People selling eligible products without operating through a registered company. Amazon allows individuals to register without forming an LLC.
• Wholesale and retail resellers: Businesses or individuals purchasing existing branded products from suppliers or retailers and reselling them on Amazon.
• Private-label sellers: Businesses working with manufacturers to sell products under their own brand names and packaging.
• Manufacturers and established brands: Companies selling their existing products directly to Amazon customers instead of relying exclusively on distributors or physical retail stores.

For example, a skincare manufacturer can create listings for its own products, while an independent retailer may offer the same brand’s products through existing Amazon listings if authorized and eligible.

Can International Sellers Join Amazon Marketplace?

Yes. Eligible businesses and individuals outside the United States can register to sell on Amazon.com through Amazon’s Global Selling program.

They must complete identity verification and comply with applicable tax, import, product safety, and marketplace requirements.

Not every registered seller can sell every product. Certain brands, categories, and ASINs require approval, while some products are prohibited entirely.

Amazon sellers manage their accounts through Seller Central, which provides the tools for creating listings, managing orders, and monitoring sales.

6. Amazon Seller Central, FBA and FBM Explained

Amazon Marketplace sellers use Seller Central to manage their businesses, while FBA and FBM determine how customer orders are fulfilled.

These are three different parts of Amazon’s selling system. Seller Central manages the business, and FBA or FBM determines who stores, packs, and ships the products.

What Is Amazon Seller Central?

Amazon Seller Central is the online platform independent sellers use to manage their Amazon accounts.

After registering, sellers can access tools for:

• Catalog and inventory: Create product listings, update prices, and monitor available stock.
• Orders: Review purchases, shipping status, cancellations, and returns.
• Advertising: Create and manage eligible Amazon advertising campaigns.
• Business Reports: Monitor sales, units ordered, product-page traffic, and conversion rates.
• Payments: Review Amazon fees, account balances, and scheduled disbursements.
• Account Health: Check policy compliance, performance notifications, and selling-account issues.

Amazon also provides a free Amazon Seller mobile app, allowing sellers to monitor sales, manage products, scan barcodes, and receive account notifications from their phones.

Fulfillment by Amazon (FBA)

With Fulfillment by Amazon (FBA), third-party sellers send inventory to Amazon’s fulfillment centers.

When a customer places an order, Amazon picks, packs, and ships the product. Amazon also handles order-related customer service and returns.

For example, an independent seller might send 200 coffee makers to Amazon. When customers purchase those coffee makers, Amazon fulfills the orders, but the independent business remains the seller.

Eligible FBA products qualify for Amazon Prime delivery benefits.

Sellers pay applicable FBA fulfillment and storage fees, along with other charges that may apply to their inventory.

Fulfilled by Merchant (FBM)

With Fulfilled by Merchant (FBM), the independent seller manages order fulfillment.

The seller stores inventory, packs orders, arranges shipping, and is generally responsible for customer service and returns, subject to Amazon’s marketplace policies.

For example, a furniture business might sell products on Amazon but ship orders directly from its own warehouse.

Amazon provides tools such as Buy Shipping and Shipping Settings Automation to help FBM sellers purchase shipping labels and manage delivery promises.

Amazon FBA vs FBM

Sellers can use both methods for different products within the same Amazon account.

Seller Central vs Vendor Central

Vendor Central is a separate, invitation-only platform for manufacturers and distributors that sell products wholesale to Amazon.

Seller Central is for third-party sellers who sell directly to customers through Amazon Marketplace. Vendor Central supports first-party relationships where Amazon buys the inventory and resells it.

This distinction explains why two products on Amazon can look identical to customers but operate under different business arrangements.

For packaging and barcode rules before sending units to Amazon, see our FBA prep requirements guide.

7. How Does Amazon Marketplace Make Money?

Amazon Marketplace generates revenue by charging independent sellers for access to its selling platform and additional services. These include selling-plan fees, referral fees, fulfillment services, and advertising.

Unlike Amazon Retail, where Amazon purchases inventory and resells it, Marketplace sellers generally own their inventory and pay Amazon fees when they sell products.

Amazon Selling Plans and Referral Fees

Amazon offers two selling plans for the US marketplace:

Amazon also collects a referral fee on each sale. The fee depends on the product’s category and is generally calculated as a percentage of the total sales price, subject to applicable minimums.

For example, Home and Kitchen products have a 15% referral fee, while other categories may have different rates or price-based tiers.

Fulfillment and Advertising Revenue

Amazon earns additional revenue when sellers use optional services.

• Fulfillment by Amazon (FBA): Sellers pay Amazon to store inventory, pack orders, ship products, and handle eligible customer service and returns. Fulfillment and storage charges depend on the product and applicable fee rules.
• Amazon Advertising: Sellers can pay to promote products through advertising programs such as Sponsored Products. These ads use a cost-per-click model, meaning advertisers pay when customers click their ads.
• Other seller services: Amazon also charges for certain optional programs and services, depending on eligibility and usage.

Sellers aren’t required to use FBA or paid advertising to participate in Amazon Marketplace.

Example: How Amazon Earns Money From a $30 Sale

Suppose an independent seller sells a kitchen accessory for $30 through Amazon Marketplace.

This example assumes a seller-fulfilled Home and Kitchen product, no separately charged shipping, and excludes selling-plan charges, product costs, fulfillment expenses, advertising, taxes, and other applicable fees.

Amazon earns $4.50 in referral fees from this transaction. If the seller uses the Individual plan, Amazon also charges $0.99 per item sold. Professional sellers pay their monthly subscription instead.

The remaining amount isn’t necessarily the seller’s profit. The seller must still pay for inventory, shipping, and other business expenses.

Amazon Marketplace makes money by providing the selling infrastructure and charging sellers for transactions and selected services, while independent sellers remain responsible for their own business profitability.

8. Is Buying From Amazon Marketplace Sellers Safe?

Yes, buying from Amazon Marketplace sellers is generally safe, provided you purchase through Amazon’s official checkout and review the seller and product information before ordering.

Independent sellers must follow Amazon’s selling policies, and Amazon provides customer support, return procedures, and purchase protections. However, product quality and seller service can vary, so it’s worth checking who you’re buying from.

How to Check an Amazon Marketplace Seller

Before placing an order, review these details:

• Seller identity: Check the Sold by information on the product page. Click the seller’s name to open their seller profile.
• Seller feedback: Review ratings and recent customer feedback about the seller’s service, shipping, and reliability.
• Product reviews: Read reviews to understand product quality, features, and potential problems. Product reviews are different from seller feedback.
• Delivery and returns: Check the estimated delivery date, Ships from information, product condition, and applicable return policy.

Always complete payment through Amazon’s checkout. Amazon doesn’t share your payment details directly with third-party sellers. If a seller asks you to pay outside Amazon, don’t proceed with the transaction.

Returns, Refunds, and Amazon’s A-to-z Guarantee

Most products purchased on Amazon.com can be returned within 30 days of delivery, although some categories and products have different return windows or restrictions.

Who handles the return depends on how the order was fulfilled.

For FBA orders, Amazon generally manages returns and order-related customer service. For seller-fulfilled orders, returns are handled through Amazon’s return process, with the seller responsible for the applicable return arrangements.

Amazon’s A-to-z Guarantee provides additional protection for eligible purchases sold and fulfilled by third-party sellers.

For example, you may qualify for a refund if:

• Your order doesn’t arrive.
• The product arrives damaged or materially different from its description.
• The seller fails to handle an eligible return or refund correctly.

For many A-to-z claims, you must first contact the seller and allow at least 48 hours for a response or resolution. Eligibility also depends on the issue and Amazon’s claim deadlines.

You can manage problems through Amazon → Your Orders, where you’ll find options to contact the seller, request a return, or get assistance.

What Does an Amazon Marketplace Charge Mean?

If you see AMZN Mktp US or AMAZON MKTPLACE PMTS on your bank or credit card statement, it generally indicates a purchase processed through Amazon.com.

These payment descriptions don’t necessarily mean the product was sold by an independent seller.

To identify the transaction, open Your Transactions in your Amazon account and compare the charge against your recent orders.

If you don’t recognize the charge, check whether a family member used your payment method, then contact Amazon or your card issuer if it remains unexplained.

The safest approach is to verify the seller, review the return conditions, and keep payments and communication within Amazon’s official systems.

9. Where Does Amazon Operate Marketplaces?

Amazon operates dedicated online marketplaces in more than 20 countries across North America, South America, Europe, Asia-Pacific, and the Middle East.

Each marketplace has its own website, product selection, local currency, and selling requirements. Although Amazon operates these marketplaces under the same brand, they’re not identical shopping platforms.

Major Amazon Marketplaces Around the World

Amazon also operates marketplaces in countries including Italy, Spain, the Netherlands, Poland, Sweden, Ireland, Singapore, Saudi Arabia, and Egypt.

Can Amazon Marketplace Sellers Sell Internationally?

Yes. Amazon’s Global Selling program allows eligible sellers to expand into other countries without necessarily establishing a separate company in every marketplace.

For example, a US seller can use Amazon’s North America and Brazil unified selling account to manage eligible offers across the United States, Canada, Mexico, and Brazil.

However, expanding internationally isn’t automatic. Sellers must consider local product restrictions, taxes, import requirements, currencies, and fulfillment costs.

Amazon provides tools such as Build International Listings and Marketplace Product Guidance to help sellers manage international listings and evaluate expansion opportunities.

Customers in countries without a dedicated Amazon marketplace may also be able to purchase eligible products through Amazon’s international shipping services.

10. Amazon Marketplace vs Other Ecommerce Platforms

Amazon Marketplace is one of several platforms businesses can use to sell products online. However, not every ecommerce platform works the same way.

The main difference is whether a business sells through an established marketplace with existing shoppers or operates its own online store.

How Amazon Compares With Shopify, eBay, and Walmart Marketplace

The Difference Between a Marketplace and Your Own Store

Suppose a skincare brand wants to sell its products online.

On Amazon Marketplace, customers can discover the brand while searching Amazon for skincare products. The brand sells through Amazon’s shopping and checkout system, pays applicable marketplace fees, and competes with other products and sellers.

On Shopify, the brand operates its own website, such as www.examplebrand.com. It controls the storefront, product presentation, and direct customer marketing, but must also bring shoppers to its website through advertising, search engines, social media, or other channels.

Neither approach is automatically better. Amazon provides access to its existing shopping audience, while an independent store gives businesses greater control over their customer experience.

Businesses can also sell through both channels, managing inventory and orders across their Amazon Marketplace account and their own website.

For a category-specific comparison, read Amazon FBA vs Shopify for CPG brands.

Selling on social commerce platforms works differently too; our guide to selling on TikTok Shop explains that route.