According to e-commerce intelligence firm Marketplace Pulse, sellers on Amazon sold $200 billion worth of products in 2019, compared with Amazon's own retail sales of $135 billion that year, for a total gross merchandise volume of $335 billion.
Third-party sellers have become the backbone of the company, with the percentage of physical gross merchandise sold by independent third-party merchants on Amazon's site growing from 3% in 1999 to 60% in 2019, said Juozas Kaziukenas, founder of Marketplace Pulse, in an interview.
If sellers find themselves out of stock, it will impact the bottom line for Amazon as a whole, Kaziukenas said. "They don't have as much experience, time or capital available to them to be able to all of the sudden shift their supply chain somewhere else," he said.
And when Chinese factories do fully resume production, they will focus on their largest clients first, such as Walmart Inc. in first-tier markets such as the U.S., creating more uncertainty for sellers that sell smaller volumes. "There is so much backlog in production they are going to have a hard time getting their products made for them," Kaziukenas said.