Is Amazon a Marketplace? How It Works and What It Means for Sellers

Marketplace vs. Retailer: What’s the Real Difference?

Amazon started as an online bookstore, then grew into a full‑blown retailer that stocks its own inventory. Over time it added a marketplace model where anyone can list items on the site. In the marketplace mode, Amazon acts as a platform, not a seller. It provides the website, the payment system, and the shipping options, but the actual product comes from an independent seller.

When you see the “Ships from and sold by Amazon.com” label, you’re dealing with Amazon’s own stock. When the label says “Ships from and sold by [Seller Name]” or you see “Fulfilled by Amazon,” the product is still listed on Amazon’s site but owned and shipped by a third party. This distinction matters for return policies, pricing, and delivery speed.

How Sellers Use the Amazon Marketplace

Anyone with a product can become an Amazon seller. They create a listing, set a price, and choose how to ship. Two popular fulfillment choices are:

Fulfilled by Merchant (FBM): The seller stores, packs, and ships the item themselves. Amazon only provides the sales channel.

Fulfilled by Amazon (FBA): The seller sends inventory to Amazon’s warehouses. Amazon handles packing, shipping, and even customer service.

FBA is attractive because it gives products the “Prime” badge, which can boost sales. But it also costs storage and handling fees. FBM gives more control over inventory and shipping costs, which is where removal and logistics services like Dex Removals can help—especially for bulk or oversized items that need careful handling.

For new sellers, the marketplace opens a fast route to millions of customers without having to build a website or a payment system. However, competition is fierce, and price wars can erode profit margins quickly. Knowing whether you’re buying from Amazon or a third‑party seller can help you compare prices, read the right reviews, and set realistic expectations for delivery times.

From a buyer’s perspective, the marketplace model offers choice. You can find rare items, compare prices across sellers, and even get faster shipping through Prime if the seller uses FBA. But it also means you might deal with different return policies or warranty terms, depending on who actually owns the product.

In short, Amazon is both a retailer and a marketplace. It sells its own stock while simultaneously offering a massive platform for other sellers. Understanding which side you’re dealing with lets you shop smarter and sell more efficiently.

Is Amazon E‑Commerce? Marketplace, Retail, and Logistics Explained

September 11, 2025 Evelyn Wescott 0 Comments

Is Amazon e-commerce? Yes-and more. Clear, people-first breakdown of Amazon as marketplace, retailer, logistics, ads, and what that means for shoppers and sellers.