Another FTC Myth Busted – Small U.S. Sellers Choose What Services Work Best for Their Business

Many policymakers fail to understand the complex realities of today’s digital retail ecosystem. Perhaps most notably, the Federal Trade Commission (FTC) claims Amazon forces sellers to use its in-house products and services at the expense of third-party services. But this is far from the truth.

Our new report, Super Selling: How Retail Choices and Competition Fuel American Small Sellers’ Success, shows that small online sellers have more choices than ever at each step of the sales process — from advertising to selling to fulfilling orders. These options create a competitive retail ecosystem where sellers decide what tools and services best suit their business’s needs, helping them find customers, grow, and compete. 

More Choices Than Ever

The FTC’s claims appear to be based on assumptions and anecdotes rather than data. Super Selling reveals that small online sellers have numerous choices for selling their products: 77% use a combination of digital (online stores and marketplaces) and traditional (brick-and-mortar and wholesale) selling methods. Seventy percent use multiple sales methods overall, and 61% sell in online marketplaces, using an average of four at any given time. 

The Power of Integrated Services

Over two-thirds (67%) of small online sellers say order fulfillment — which includes tasks like inventory management, storage, packing, shipping, customer service, and returns — is a challenging part of running a business. 

One of Super Selling’s key findings is that 90% of small online sellers say today’s digital ecosystem offers their business many options for e-commerce fulfillment tools and services. These range from self-fulfillment options, to working with multiple third-party vendors to using integrated marketplace services. Some 83% of sellers use a hybrid approach, combining DIY and integrated or third-party fulfillment options — sometimes using different methods for different products. 

More than three-fourths (77%) of small online sellers choose integrated services — digital order-fulfillment tools offered by platforms such as Amazon, Walmart, Etsy, and eBay — because they streamline operations, drive business efficiency, and enhance the customer experience. These integrated services, like Amazon’s Fulfillment by Amazon (FBA), are much easier, quicker, and more cost-effective than the alternatives, like completing orders in-house or managing fulfillment through multiple vendors. 

Tremendous Value

The benefits of integrated services are undeniable. Sellers can leverage marketplace-integrated services to handle these tasks seamlessly instead of spending hours packing orders, waiting in line at the post office, or navigating numerous costly third-party fulfillment providers. Nearly all (98%) small sellers using integrated services say they save time and money or reduce complexity. With fulfillment taken care of, 73% report having more freedom and flexibility to focus on running their businesses. 

Cost-Effective and Efficient

Contrary to the FTC’s claims, integrated services provide exceptional cost savings. For example, when you run the numbers, shipping with FBA is 70% cheaper than with competitors like USPS, UPS, and FedEx. Sellers recognize the value of these services, with 88% saying their fulfillment tools and services are worth more than what they pay or are priced just right — especially when it comes to customer service (92%) and shipping and delivery (90%) features and tools. 

A Competitive Edge for Small Sellers

Saving time and money isn’t just about convenience — it’s a necessity for small sellers competing with larger businesses. Instead of falling behind or losing customers to competitors, most (89%) small online sellers using integrated services say these tools provide a crucial competitive advantage. Over two-thirds (67%) say their businesses would be harmed without these services.

Policymakers Must Recognize the Value of Choice

It’s critical that policymakers and regulators, especially the FTC, recognize the realities of selling online. Small sellers are not locked into any particular sales, advertising, or fulfillment method; rather, they have the freedom to choose what works best for them. Amazon’s FBA is one of the most popular and valuable fulfillment options available, and any regulatory action that limits or dismantles it would deal a serious blow to small businesses. 

The modern retail space is rich with choices, and small sellers are making informed decisions that drive their success. Policymakers must stick to the facts and listen to the voices of small business owners before enacting policies that could hinder their growth.