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- Amazon's total GMV surpassed $830 billion globally in 2025, with $716.9B in annual revenue
- 3P sellers now account for 69% of all units sold, roughly $575B in marketplace GMV
- Ad revenue jumped 22% to $21.3B in Q4 alone, a $75B annual run rate
- Amazon's operating margin expanded to 11.3% while seller margins compressed 2-3 points
Nova surfaces every Amazon fee, refund, and margin shift in your live P&L, across 21 marketplaces. Check the SKU-level breakdown
What's Happening
Amazon posted record Q4 2025 earnings on February 6, 2026. Revenue hit $213.4 billion for the quarter and $716.9 billion for the full year. Both numbers topped analyst expectations. But the headline number that matters most for sellers? Total GMV across Amazon's marketplace surpassed $830 billion globally. For the FBM sellers on Nova, the angle that matters here is different from FBA, and it's worth flagging up front.
Third-party sellers now account for 69% of all units sold on Amazon. That translates to roughly $575 billion in 3P GMV. It's a record share, and it's still climbing. Amazon's advertising revenue also jumped 22% year-over-year to $21.3 billion in Q4 alone. That's now a $75 billion annual run rate for ads.
Here's what's less visible in the headlines: Amazon is prioritizing its own profitability. Operating margins expanded to 11.3% in Q4, up from 7.8% a year ago. The company plans to spend over $200 billion in capex in 2026, mostly on AI infrastructure and logistics. For sellers, this means the platform is getting more expensive to operate on, even as it grows.
Annual Revenue
$716.9B
Up 11% YoY, record full-year revenue
Total GMV
$830B+
Global marketplace gross merchandise value
3P Seller Share
69%
Of all units sold, roughly $575B in 3P GMV
Key Dates & Deadlines
Q4 2025 Earnings Released
Amazon reports $213.4B in Q4 revenue, beating Wall Street estimates by $3.2B
$716.9B Annual Revenue
Record full-year revenue, up 11% YoY. Operating income reaches $68.6B.
$200B+ Capital Expenditure Planned
Amazon signals massive infrastructure spend focused on AI, logistics, and AWS capacity
Impact on Amazon Sellers
Ad Costs Keep Climbing
Amazon's ad revenue hit $21.3 billion in Q4. That money comes directly from sellers. Average CPCs have risen 15-20% year-over-year in competitive categories. With Amazon pushing ad placements into more surfaces (including streaming TV and Rufus results), sellers face growing pressure to spend more just to maintain visibility. If you're not tracking your Amazon's ad revenue hit $21.3 billion in Q4. That money comes directly from sellers. Average CPCs have risen 15-20% year-over-year in competitive categories. With Amazon pushing ad placements into more surfaces (including streaming TV and Rufus results), sellers face growing pressure to spend more just to maintain visibility. If you're not tracking your ad efficiency at the product level, you're likely overspending., you're likely overspending.
Margin Compression Is Real
Amazon's own operating margin expanded to 11.3%. Sellers aren't seeing the same improvement. Between rising FBA fees, inbound placement charges, and increasing ad costs, the average seller's net margin has compressed by 2-3 percentage points over the past two years. The sellers who survive this environment are the ones who know their unit economics cold. Product-level profit and loss tracking Isn't optional anymore.
3P vs 1P Channel Dynamics
With 3P sellers now at 69% unit share, Amazon continues to shift toward a marketplace model. This creates opportunity for brands that can operate efficiently at scale. But it also means more competition for the same customers. The brands winning right now are the ones combining strong organic rankings with disciplined ad spend and fast fulfillment.
| Metric | Q4 2024 | Q4 2025 | Change |
|---|---|---|---|
| Quarterly Revenue | $187.8B | $213.4B | +13.6% |
| Ad Revenue | $17.3B | $21.3B | +22% |
| Operating Margin | 7.8% | 11.3% | +3.5pp |
| 3P Unit Share | 62% | 69% | +7pp |
What You Should Do Now
- 1.
Track Unit Economics at the Product Level
With margins compressing, you can't afford to guess which products are profitable. Calculate your true net margin per SKU after all Amazon fees, ad spend, COGS, and shipping. Kill or fix anything running negative. Double down on your winners.
- 2.
Optimize Ad Efficiency, Not Just Ad Spend
Ad costs aren't coming down. Focus on TACoS (Total Advertising Cost of Sale) rather than ACoS alone. Build organic ranking through better listings and review velocity so you're less dependent on paid traffic. Use Ad costs aren't coming down. Focus on TACoS (Total Advertising Cost of Sale) rather than ACoS alone. Build organic ranking through better listings and review velocity so you're less dependent on paid traffic. Use product-level performance data to cut waste. To cut waste.
- 3.
Diversify Beyond Amazon
Amazon's GMV growth is real, but so is the fee pressure. Sellers who build their own DTC channels, expand to Walmart or TikTok Shop, or invest in wholesale relationships have more use. Don't put all your revenue into a platform that's actively optimizing for its own margins.
How Nova Helps
Navigate the Margin Squeeze
Nova's Profit and Loss Analytics show you exactly where your money goes at the product level. Track every fee, ad dollar, and cost input so you can make decisions based on real margins, not revenue vanity metrics.
Use PPC Management to identify wasted ad spend and reallocate budget to high-converting keywords. With ad costs rising 22% YoY, efficiency is the only sustainable strategy.
Winners and Losers Automatically flags products losing money so you can take action before the damage compounds. In a margin-compressed environment, speed matters.
Sources
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Verified Sources
- Marketplace Pulse: Amazon GMV Analysis
- Amazon Investor Relations: Q4 2025
- Marketplace Pulse: Amazon Marketplace Data
All information verified from official Amazon sources and trusted industry analysts as of publication date.
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