Is Amazon an eCommerce Platform? Everything You Need to Know for 2025

14

Jul

Is Amazon an eCommerce Platform? Everything You Need to Know for 2025

Every time I forget the Friday fish fingers for my son, Percival, and race to order them before the weekend, I end up on Amazon. It’s just become instinct. Why? Because Amazon basically dominates the space where online shopping and digital convenience crash together. But is Amazon an eCommerce? Feels too simple for such a massive beast, doesn’t it?

What Actually Makes a Platform “eCommerce”?

An eCommerce platform, at its core, is a place where buyers and sellers connect digitally to exchange goods or services. This usually means a website or app with product listings, shopping carts, payment processing, delivery management, and some form of after-sales support. You expect to browse, add to cart, check out, and get your order at the door (or at least know when it’ll show up). Classic examples besides Amazon are eBay, Shopify, and Etsy.

Amazon does all this, and more. It’s packed with millions of products: from headphones to gardening sets, groceries to rare Japanese candy. They host products sold by both Amazon (as a retailer) and third-party sellers (like your local electronics shop or some crafty mum from Yorkshire knitting cat jumpers). In 2024, over 60% of Amazon’s sales actually came from third-party sellers. That’s proper marketplace action right there.

Just in case you wanted cold facts, here’s a table that sums up Amazon in the eCommerce world versus few other big names:

Platform Number of Sellers Annual Revenue (2024) Percentage of Third-Party Sales
Amazon ~9.7 million $575 billion ~60%
eBay ~18 million $10.1 billion ~86%
Shopify ~2.1 million $7.1 billion ~100% (Shop Owners)
Walmart.com ~150,000 $107 billion ~50%

The basics are clear: if it quacks like an eCommerce, walks like an eCommerce, it’s probably eCommerce. And Amazon? It’s the king duck. Or maybe the wolf in sheep’s clothing, depending how you feel about corporate giants.

Amazon’s Massive Web: More Than Just Shopping

When people talk about eCommerce, it sounds like a boring transaction: you buy and wait. Amazon’s turned that upside down. Yes, you can shop for almost anything. But there’s Amazon Prime – you pay extra but get one-day delivery, music streaming, video streaming, gaming perks, and even early access to certain sales. It’s become a digital lifestyle bundle. There’s even “Subscribe & Save,” where folks (guilty here) auto-order stuff: toilet roll, snacks, that specific toothpaste my wife insists is “the one.”

Now, check this out: Amazon isn’t just a big catalog. It’s a labyrinth of services. Sellers get access to fulfillment centers (called FBA – Fulfillment by Amazon), meaning you can ship your products to Amazon’s warehouses, and they’ll handle packing, delivery, returns. This removes a tonne of headache for small businesses or side hustlers. In 2023, data showed around 73% of the top Amazon sellers worldwide used FBA. Swapping garage chaos for real logistics muscle – that’s transformative.

Don’t skip over the tech side. Amazon Web Services (AWS) runs a big chunk of the internet. If you’re playing an online game, watching a new streamer on Twitch, or using certain smart home stuff, it’s likely using AWS in some way. Even though AWS isn’t strictly “eCommerce,” it grew from Amazon’s need to handle their own wild traffic and has ended up running half the internet. So, while you’re ordering more stuff from Amazon, their hosting might be powering the checkout for your local bakery’s website too.

Apart from buying and selling, Amazon also bolted on things like product reviews, wish lists, recommendations (sometimes a bit too clever for comfort), and even their own branded devices. Ever notice how Amazon pushes Fire TVs or Kindle eReaders in the search results for “booklight” or “smart speaker”? That’s a vertical: they own the shop, the product, and how you buy it. You become fully tied into their ecosystem, happy or not.

How Amazon Changed the Game for Other Businesses

How Amazon Changed the Game for Other Businesses

Here’s where things get spicy. Amazon isn’t just an eCommerce. It’s changed what shoppers expect from every online shop, even the tiny ones run out of spare bedrooms. With one-day or two-day delivery now a baseline for millions, other shops are scrambling to keep up. My local corner shop dipped its toe into online orders during lockdown. Most of my neighbours now just click “add to basket” on Amazon and move on.

It’s not all sunshine, though. Loads of shops struggle to keep up with Amazon’s sheer speed and pricing power. Third-party sellers on Amazon get crazy reach, but the flip side? Tough rules. Amazon’s algorithms can block listings, freeze accounts, or change the rules overnight – sellers have to jump fast or lose out. In 2024, a survey of UK small business owners revealed that 38% rely on Amazon for more than half of their online sales, but 42% say they worry about Amazon’s control over their business future.

Interestingly, Amazon’s data game is ruthless. They track what you browse, what you add but ditch from your cart, how long you hover over reviews, and even which keywords get used in searches. This isn’t just to suggest “You might also like...” but to fuel their own product launches. AmazonBasics and other private label products (think batteries, cables, yoga mats) are literally based on data mined from third-party sales. This friction led to some EU investigations back in 2020-2023, with claims Amazon leverages third-party data unfairly. As of 2025, the company continues to walk this fine line, adding more transparency to stay on the right side of regulators – it’s a work in progress.

On the brighter side, the *strongest* keyword in this conversation – Amazon – has made entrepreneurship stupidly accessible. You can set up shop from your sofa, never see your product, and let Amazon print the labels, handle customer service, and clear returns. It’s wild compared to the old days of bricks, mortar, and dodgy hand-written receipts.

But is Amazon the best choice for everyone? Not really. Handmade items, artisan shops, and businesses that want a personal touch might fight for attention in Amazon’s endless aisle of mass-produced stuff. Do you want your hand-carved chess set next to ten plastic copies at half the price? And good luck trying to stand out while paying both listing fees and a cut of each sale to Amazon. That said, if reach is your dream, it’s almost unbeatable.

Tips and Insights: Shopping and Selling on Amazon

Here’s where I get a bit practical, having burned through countless hours and pounds on the site. If you’re shopping, the first thing to know: Amazon’s search isn’t always honest. The first results are often sponsored ads. Scroll down, check reviews, and don’t get sucked in by the “Amazon’s Choice” badge, which just means someone at Amazon likes the profit margin or sales numbers. Check for multiple sellers, look for products fulfilled by Amazon (for better shipping), and watch out for subtle differences in product listings that change the price (like model number, size, or colour).

If you’re a seller, your battles are different. Start by reading Amazon’s ever-changing rules. Join some seller forums; real stories will save you more pain than the official FAQs. Invest in good product photos – smartphone snaps in your kitchen won’t cut it. Use Fulfillment by Amazon if logistics gives you a headache but know you lose a bit of control. Keep an eye on fees – they stack up fast. Price competitively, but don’t join a race to the bottom. If you have something unique, push for great reviews and proper branding. That’s your superpower against generic copycats.

Amazon’s international reach is another secret weapon, but it comes with a pile of red tape. VAT, customs, returns… if you plan to ship outside the UK, read up or get help before you ship your first unicorn-shaped candle to New York and have it stuck in a warehouse for weeks. Look out for currency conversion fees and check how currency swings impact your profit; in 2024, the pound wobbled after the spring election, making sales wild for a few weeks.

Prime Day (usually in July) is a chance for both shoppers and sellers to grab bargains or shift lots of stock fast. But watch out – demand spikes mean prices on essentials sometimes go up, and the “deal” isn’t always as good as it looks. Tools like CamelCamelCamel track price history, so you don’t get tricked by a phony half-price sale. If you’re a seller, remember: offering free shipping can give a big edge. Amazon’s search and sort features are designed to push those listings upwards.

Parents, especially, benefit bigtime from Amazon Family features – big discounts on nappies, baby food and toys. And don’t forget digital gift cards: speedy present for forgetful types (like me), and many now work with Alexa and Echo devices, letting you gift and buy with voice only. Sounds lazy, is lazy, but sometimes saves the day after you forget a birthday party invite.

Security matters, so always use two-step verification on your Amazon account, keep payment details tight, and watch out for phishing. Amazon’s huge size makes it a juicy target for scammers, so stay sharp – never share your details if you’re not sure who you’re talking to. And if something you ordered looks off, speak up. Their A-Z guarantee means you’re more likely to get buyer protection if things go bad.

So, is Amazon an eCommerce? Technically, yes – it’s probably the most powerful eCommerce platform out there. But it’s also shaped how we think about shopping, running a business, and what we expect from the web. It’s as much a verb as a noun. You “Amazon it.” And that’s how you know it’s changed the game for everyone, from the biggest brand to the smallest seller in Bristol (even those of us just ordering Percy’s school snacks at midnight).