Online shopping now accounts for roughly one in six retail dollars spent. Census Bureau data shows e-commerce spending hit $326.7 billion in the first quarter of 2026. Small and medium sellers are powering these sales, using digital tools to reach customers across the world. A new Oxford Economics study estimates that independent sellers in Amazon’s store supported $183.9 billion of U.S. GDP, $81.8 billion in labor income, and $57.9 billion in taxes in 2025. In the study, Oxford researchers stripped out Amazon’s referral fees and foreign supplier purchases to measure only U.S. economic impact.
The Real-World Footprint of Independent Sellers
Small sellers directly contributed $57.7 billion to the U.S. economy in 2025. In fact, Oxford Economics discovered that if independent sellers were treated as a single standalone industry, they would generate more direct GDP than 75% of all U.S. industries. But direct sales are only part of the story—their true economic ripple effect reaches much deeper:
- $81.2 billion added through the use of domestic suppliers
- $45 billion contributed through worker wage spending
- $320 in total economic activity supported for every $100 generated directly by sellers
Online marketplaces do far more than power digital storefronts. They fuel the entire supply chain, driving growth for American manufacturers, distributors, and local service providers alike. The largest gains landed in retail ($62.1 billion), manufacturing ($27.8 billion), and wholesale trade ($18.1 billion), with transportation ($10 billion) and professional services ($8.9 billion) also reaping big benefits.
Seven states account for over half the national total, anchored by California at $31.9 billion, though less populated states are also reaping substantial economic gains. For instance, independent sellers account for 1.1% of Utah’s total GDP.
91% of sellers are small or medium-sized, and 77% fall into the micro- or small-business category. Nearly a third (30%) launched in 2020 or later, and 45% operate outside major metropolitan areas. Thanks to marketplaces, many have reached impressive scale, with 64% reporting annual sales over $1 million. Small business owners don’t rely on just one platform. Only 2% of surveyed sellers sell solely on Amazon. 54% sell across five or more channels, blending custom websites, wholesale accounts, and online storefronts. In the modern retail environment, physical and online commerce reinforce each other, giving local entrepreneurs the power to build nationwide brands from anywhere in the country.
These small sellers are embedded in the fabric of their local communities. Two-thirds (66%) hire local employees, and 64% directly boost their town’s tax base. On top of that, 44% rent local office or warehouse space, while 40% source materials from nearby suppliers. When you add it all up, a staggering 96% of sellers make direct, tangible contributions to their local economy.
Lawmakers considering proposals like the American Innovation and Choice Online Act (AICOA) need to start paying attention to these entrepreneurs’ stories. Targeting online marketplaces risks breaking the vibrant digital tools that local entrepreneurs use to build national brands. When independent sellers are already generating nearly $184 billion in American economic output–roughly $1 out of every $170 in the U.S. economy–Congress should be working to protect the retail innovation that has enabled these tremendous gains, rather than smothering it in red tape.
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