If you sell products online, the recent antitrust lawsuit against Amazon is worth watching—not just for what it says about the company but also for how it could reshape the e-commerce landscape. Filed by the FTC and 17 state attorneys general, the legal case accuses Amazon of using anti-competitive tactics to dominate the market and lock sellers into its ecosystem.

For sellers, it’s a wake-up call. The lawsuit highlights the risks of relying too heavily on one platform like Amazon, the hidden costs of doing business with a marketplace giant, and the need to understand your legal rights and options.

Here’s what you need to know and why this case matters to anyone selling online.

The Allegations Against Amazon

At the core of the FTC’s case is the claim that Amazon doesn’t just compete—it eliminates competition. Here’s how the lawsuit says they do it:

If you offer a lower price on another platform, Amazon can bury your listings so deep in search results that your products essentially disappear.

Sellers must use Amazon's expensive fulfillment services to qualify for Prime (a near-essential for visibility), making it costly to sell on other platforms.

Between listing, fulfillment, and advertising fees, some sellers pay nearly 50% of their revenue back to Amazon.

According to the FTC, these practices inflate prices, reduce product quality, and get rid of competition by making it nearly impossible for other online platforms to compete.

Why Sellers Should Care

When a single platform controls so much of the market, you’re at the mercy of their rules, fees, and algorithms. Consider this: if Amazon’s tactics are illegal, the lawsuit could change its operations. That might mean more freedom to set prices, less dependence on costly services, or even a shift in search results. 

Sellers could also face disruption if Amazon breaks up or drastically changes its business model. Either way, the lawsuit underscores the importance of diversifying your revenue channels and understanding the business and legal environment in which you operate.

What You Can Do Now

If you’re selling online, now’s the time to look at your business strategy. 

Relying solely on Amazon is risky, especially in this case. Consider expanding to other marketplaces or building out your direct-to-consumer channel.

How much of your revenue will be platform fees? You might want to explore alternatives if it’s creeping toward the 50% mark.

Legal cases like this can be complex but have real implications for sellers. 

Look for business and legal updates from trusted sources.

Learn About Your Legal Options

If you feel stuck in an unfair system, you don’t have to wait for the FTC to step in. There are resources available to help you understand your rights and take action.

AI legal platforms like Westlaw and Caseway AI can help you research relevant laws and cases if hiring a lawyer is out of budget. These tools make it easier to understand how antitrust laws apply to your situation.

Many States offer small businesses free or low-cost legal resources. If you think you’ve been unfairly treated, it's worth reaching out.

Why This Matters for the Future of E-Commerce

Amazon’s dominance has impacted how we shop and sell online. If the FTC wins this case, it could mark the beginning of a more competitive and seller-friendly marketplace. For sellers, that might mean lower fees, more pricing freedom, and less reliance on costly services.

But the outcome is far from certain. Antitrust lawsuit cases take years to resolve, and even if the FTC wins, it’s unclear how quickly changes will trickle down to sellers. What’s clear is that the e-commerce landscape is evolving, and sellers who stay informed and adaptable will be in the best position to thrive.

How are you preparing for these potential changes if you're a seller? Are you looking at other platforms or sticking with Amazon for now? Share your thoughts—we are curious to know how others are dealing with this shifting legal and business environment.

Thanks for reading! 🙏