The FTC’s Case Against Amazon Ignores How Online Marketplaces Deliver for Small Businesses
A core part of the FTC’s case against Amazon is based on false assumptions about the relationship between small businesses and online marketplaces. In reality, small to medium businesses (SMBs) have found opportunity in online commerce generally and derive immense value from selling on Amazon in particular.
Surveys Show Small Businesses Value Online Marketplaces
Recent surveys show small and medium-sized businesses aren’t trapped in online marketplaces like Amazon—they’re actively choosing them because they provide value.
— 85% of small retailers say using online marketplaces lowers business costs.
— 92% agree these platforms make it easier to reach new customers.
— 90% use Amazon’s analytics tools to develop new products, and nearly 80% say success online helped them expand into brick-and-mortar stores.
— 9 in 10 small businesses say e-commerce marketplaces reduce overhead and streamline operations.
— 92% say these platforms help them find customers beyond their geographic limits.
Small Business Roundtable (Feb 2025):
— 92% of online sellers say marketplaces make it significantly easier to attract customers.
— 85% say selling through e-commerce platforms cuts costs—freeing up resources for investment and growth.
— Amazon, in particular, stands out among online marketplaces in this survey:
— 93% of SMB leaders who use Amazon in particular agree that selling on Amazon has led to greater business success.
— 95% of SMB Leaders who use Amazon agree that Amazon offering a simplified fulfillment process had a big impact.
— 93% of SMB Leaders who use Amazon agree that selling on Amazon has helped them provide faster delivery time.
Connected Commerce Council (3C) and Data Catalyst Institute (DCI) (March 2025):
— 59% of small online sellers say online stores and marketplaces yield higher profit margins than traditional retail methods.
— 77% use fulfillment services offered by online stores and marketplaces.
— 90% small online sellers say they have many options for fulfillment tools and services
The message is clear: SMBs favor online marketplaces because they create opportunity for growth by lowering costs, and expanding reach.
Online Marketplaces Help SMBs Scale Quickly
Online marketplaces provide critical resources for businesses of all sizes, offering financial support, logistical infrastructure, and digital tools that lower barriers to success.
— As of 2024, 5.6 million sellers were active on the Etsy marketplace. 97% of sellers run their businesses from home. 97% of Etsy sellers run their shops from their homes, and 89% operate as solopreneurs.
— Fulfillment by Amazon leverages Amazon’s fulfillment network to help small businesses reduce shopping expenses and focus more on product quality and business growth. This is particularly impactful for rural sellers, who often face higher shipping expenses and logistical challenges. In 2023, small business sellers in rural areas—spanning states like North Dakota, Kansas, Alaska, Utah, and Florida—saw over 60% year-over-year growth on Amazon, exceeding the 22% average growth rate for all brand owners on the platform.
— Platforms like Amazon Handmade connect artisans with a global market. A good example is Mystic Knotwork, a small nautical rope business in Connecticut. Despite operating in a niche market, they use Amazon’s platform to reach thousands of new customers, many of whom later visited its brick-and-mortar shop.
The FTC claims it is fighting for small businesses in its case against Amazon, but the evidence shows that online marketplaces are supporting the growth of small-medium businesses.
The Overwhelming Majority of SMBs Use More Than One Marketplace
The FTC argues that Amazon monopolizes online marketplaces, but the data proves otherwise—small businesses don’t just sell on Amazon; they sell across multiple platforms. 90% of small businesses selling online do so on at least two e-commerce marketplaces. The average small business retailer uses three e-commerce marketplaces and two additional sales channels (primarily in-store).
SMBs are not locked into a single platform—they are choosing to sell on multiple marketplaces because it helps them reach more customers and grow. Read more about the FTC’s case against Amazon here and here.