Amazon is one of the largest and most popular ecommerce platform, but still, rising fees over the last few years have driven some sellers to use other platforms to help make ends meet. To many sellers, Amazon simply doesn’t offer the potential that it once did for new or small sellers.

But while increasing costs certainly don’t help, other seller challenges may be driving some of them away from Amazon and towards other platforms like TikTok and Walmart, or even towards expanding into other channels entirely.

Many Sellers Are Getting Sick of Amazon Due to Rising Fees

Even though Amazon was once seen as the premier destination for online sellers and merchants, it seems that support is wavering. In fact, many Amazon sellers say that they’re being forced to use and sell on other platforms, such as TikTok or Walmart, in order to make ends meet and stay afloat.

This is due to the new and increased fees that Amazon has imposed in recent years, such as the recent 3.5% fuel and logistics surcharge that it put on many sellers in response to rising costs. While the fee is said to be temporary, some people aren’t so sure about that.

But even before this recent new fee, Amazon hasn’t been shy about making things more expensive for sellers with things like processing fees, advertising costs, storage fees, inbound defect fees, handling surcharges, base shipping fee increases, and others. Some sellers may be forced to pay a huge portion of their revenue to Amazon due to these fees and costs.

Other Challenges Potentially Driving Sellers Away to Other Channels

While these high costs may make it harder to earn a healthy profit on Amazon alone, it’s not solely finances that may be driving people to consider other platforms. First, there’s the fact that Amazon controls the customer relationship. When someone buys your product on Amazon, they’re considered an Amazon customer, not yours.

This makes it much harder to build relationships with people who buy your products, and may hurt your brand awareness.

Many customers also have issues with the flaws regarding Amazon’s automation. For example, bots may deactivate listings or suspend accounts, and force you to go through a frustrating appeals process to get back to selling.

Also, Amazon returns are generally more customer-friendly, which can lead to businesses falling victim to return scams and buyer fraud, and being forced to absorb the associated costs.

Finally, the rising competition on Amazon, especially from cheap overseas knockoffs, often makes it hard for safe, legitimate, and high-quality products to compete.

Where These Sellers Are Going

As for where sellers go when looking to make ends meet if Amazon isn’t enough, there are several potential options. First, a logical place to consider is another marketplace, such as TikTok or Walmart. These operate in a way that the seller is likely familiar with, but may simply offer better and more favorable terms in some cases than what Amazon provides.

Also, instead of using other marketplaces, many sellers are putting more effort into their own direct-to-customer efforts. This may be through a website, through social commerce, and any number of other sales channels. This lets them own the customer relationship, and may often come with fewer fees and expenses than selling on Amazon or other platforms.

In addition to helping make ends meet, a company diversifying how it sells is also great for mitigating risk and expanding its footprint.

Our Take

Amazon Reigns Supreme, But The Door Is Opening

Despite some people making the jump to other platforms, or at least putting more time and effort into platforms outside of Amazon, there’s a good chance Amazon continues to dominate the space. A record number of sellers broke $1 million on the platform in 2025, and it’s still far and away the most popular option.

However, the rising fees and general unhappiness that some sellers have with the platform are certainly opening the door for other platforms to increase their market share. And who knows, if Amazon continues to increase fees or make other decisions that anger sellers, other platforms like TikTok Shop or Walmart could one day unseat Amazon.