Amazon 3rd-Party Sellers Inc.
(AMZN 3,400.35 +22.93 +0.68%) is increasingly becoming an online marketplace, rather than a retailer. The proportion of sales made by other companies through Amazon has increased every year since 2007 and surpassed 50 percent for the first time in 2015, according to data cited Thursday by Chief Executive Officer Jeff Bezos in an annual letter to shareholders. Third-party sales climbed from 1999 through 2018 at an annual rate of 52 percent, more than twice Amazon’s 25 percent pace for its own retail business. “To put it bluntly: Third-party sellers are kicking our first-party butt. Badly,” Bezos wrote.