
Last Friday, leading U.S. eCommerce analytics platform Marketplace Pulse released a new set of data showing that the number of Amazon FBA sellers with annual sales exceeding $1 million has risen 66% since 2021, reaching 100,000 sellers. Meanwhile, sellers earning over $100 million annually have grown to 230 accounts. Notably, these figures are calculated per Amazon account, highlighting the scale of individual operations.
The report also confirms what many sellers have already sensed: Chinese sellers now account for 63% of the platform’s sellers, up from 50% in 2021. However, profitability was not mentioned—hinting at another layer of insight. Interestingly, the data also shows a rapid increase in American sellers reaching the $1M or even $100M club, raising a key question: How are U.S. brands competing so effectively against China’s pricing advantage?
Part 1: The Changing Landscape of Amazon FBA Sellers
1. Over 100,000 sellers now earn over $1M per year
According to the Marketplace Pulse report, more than 100,000 active sellers on Amazon now generate over $1M annually—nearly double the 60,000 in 2021. The number of super sellers (over $100M/year) has surged to 230, up from just 50 in 2021, with 146 of them based on Amazon.com (U.S. marketplace).
2. U.S. remains the core battlefield
The U.S. market continues to lead in both competition and opportunity. While 43% of Amazon.com sellers earn over $100K per year, other global marketplaces average just 19%, making the U.S. the central focus for all serious sellers.
3. Active seller numbers decline, while top sellers surge
Amazon’s overall active seller count is now around 2 million globally (1.9 million on Amazon.com), slightly lower than pandemic-era peaks. Yet, high-revenue sellers continue to grow—indicating a shift from operational hustle to end-to-end excellence across R&D, supply chain, logistics, and compliance.
4. Algorithm-driven polarization deepens
More than 50% of Amazon’s GMV is now generated by the top 2% of sellers. The platform’s recommendation engine, ad systems, and brand support tools are amplifying winners, making it increasingly hard for small, unbranded sellers to survive.
5. Core capabilities for future growth
Amazon FBA Sellers aiming to join the million-dollar club must develop:
- Product development (avoid red oceans, increase repeat rate)
- Brand building (not just registration, but emotional connection)
- Profit margin management (smart pricing, cost control, and ad efficiency)
Part 2: How U.S. Brands Compete Without a Price War – The Zeroll Case Study
Despite China’s price advantage, how do American brands like Zeroll thrive? The answer lies in innovation, design, local production, and diversified channels.
1. Company Background
Founded in 1935 in Florida, Zeroll has specialized in professional ice cream tools for nearly a century. Its signature product—the heat-conductive scoop—is globally recognized.
2. Product Function and Problem Solving
Zeroll’s scoop uses a heat-conductive fluid inside the handle, which transfers hand warmth to the scoop head. This makes digging into hard ice cream effortless, solving common problems like:
- Wrist pain from hard scooping
- Unhygienic water-heated scoops
- Bending or breaking of cheap competitors
3. Patents and Product Protection
Zeroll secured patents early and continues to innovate with improved fluid formulas and metal alloys to stay ahead of copycats.
4. U.S.-Based Manufacturing: No Outsourcing
Zeroll refuses to outsource to lower-cost regions, avoiding design leaks and quality issues. On platforms like 1688.com, cheap copies of Zeroll’s scoop sell for ¥120 (~$16.6 USD)—more expensive than Zeroll’s Amazon price yet inferior in quality.
5. Pricing Advantage Despite Copycats
Copycat brands on Amazon list similar products for $29 or more, while Zeroll maintains a $26.16 price point with superior quality—thanks to supply chain integration and brand strength.
6. Multichannel Sales & Amazon Vendor Central
Zeroll doesn’t rely solely on Amazon. It sells through retail kitchen stores, B2B wholesale channels, and specialty shops. Due to its strong performance outside Amazon, the platform invited Zeroll to join Vendor Central, giving Amazon full control over logistics, ads, and fulfillment while Zeroll focuses on product and quality.
Part 3: The Great Seller Reset on Amazon
U.S.–China relations are improving, but sellers must stay clear-eyed. The “China as the world’s factory” era is over. Relying purely on “China + low cost” is no longer viable. Even if tariffs drop, homogeneous competition has already wiped out profits—often worse than the tariffs themselves.
Many sellers spent years scaling through cost-cutting and mass listings, neglecting innovation and brand-building. But now, as compliance costs rise and inventory cycles lengthen, one small disruption can collapse the entire operation.
Brands like Zeroll and EufyMake (from Anker) show a new way forward: invest in product innovation, IP protection, local manufacturing, and channel diversity. Their success has led to platform invitations, pricing power, and long-term growth.
Final Takeaway for Sellers in Today’s Hyper-Competitive Landscape
Even as the trade environment softens, the lesson is clear: Sustainable growth no longer comes from operational tricks or shallow product selection. For sellers still trapped in price wars and “copycat” logic, the cost of competition has already eclipsed the cost of tariffs.
Now is the time to rethink your business strategy:
- Understand the market (not just competitors)
- Innovate meaningfully (don’t copy blindly)
- Solve real pain points (not just lower prices)
- Build multichannel brand equity (beyond platform sales)
Those who adapt will survive—and thrive. The rest will fade under the weight of shrinking profits, rising risk, and platform scrutiny. The next wave of Amazon success belongs to those who build smarter, not cheaper.
Contact Us
Hui Creative Services Inc.
Helping global brands grow through marketplace strategy, content, and compliance.
Locations: Vancouver, Canada & Shenzhen, China
Website: www.leadspro.ai
Email: info@leadspro.ai
Phone: +1.888.680.8599