Recent analysis from NovaData indicates that a growing share of Amazon sellers are reducing their reliance on third-party software tools. The report highlights a notable shift in operational behavior across the marketplace ecosystem.
According to the findings, 60% of Amazon sellers now operate without a repricing tool, a significant increase from roughly 33% in 2021. Additionally, 36.7% of sellers do not use third-party PPC management software, suggesting a broader move toward simpler technology stacks and more direct platform management.
For brands selling on Amazon, this development reflects an evolving relationship between marketplace infrastructure and external seller tools.
For years, third-party software has been central to Amazon operations. Sellers relied on external tools for tasks such as repricing automation, advertising optimization, inventory planning, and analytics.
However, the NovaData findings suggest that some sellers are reconsidering this dependency. As Amazon continues expanding its internal capabilities within Seller Central — including automation features, advertising controls, and data insights — certain sellers may find fewer reasons to maintain complex stacks of external tools.
This does not necessarily mean that third-party platforms are disappearing. Instead, it signals that sellers are becoming more selective about which tools deliver real operational value.
Operating multiple external tools often introduces operational complexity. Sellers must manage integrations, maintain consistent data flows, and reconcile metrics between systems.
In addition, subscription costs for software solutions can accumulate quickly — especially for growing brands running advertising campaigns, repricing automation, inventory forecasting tools, and analytics platforms simultaneously.
For smaller sellers or early-stage brands, reducing software overhead may be a practical decision. Meanwhile, larger sellers may consolidate tools into fewer platforms rather than maintaining a fragmented technology stack.
Benefits for Brands and Sellers / Application
Even as some sellers reduce third‑party software usage, access to reliable performance data remains essential for marketplace success. However, Amazon is rapidly building features that replicate the functionality of many third-party tools, effectively consolidating capabilities within its own platform.
Amazon is essentially replacing the need for many third-party tools. I remember how the seller landscape looked 5-10 years ago — there were countless SaaS solutions for analytics, reviews, and more. Today, Amazon is centralizing these capabilities, giving sellers more insights and control directly on the platform.” –Founder, Mark Daniel Zalomajev
This trend emphasizes that operational efficiency now depends not only on tools but on how sellers leverage Amazon’s built-in systems strategically.
Even with fewer external tools, understanding performance data is still crucial for scaling effectively. Amazon’s ecosystem generates vast amounts of operational information — from advertising metrics and inventory trends to customer behavior signals — that sellers must interpret to maintain profitability.
The strategic question is not whether to use third-party software, but how to organize and act on the data Amazon provides.
The trend identified by NovaData highlights a broader evolution in the marketplace ecosystem.
Amazon’s platform is continuously expanding its internal capabilities, while sellers simultaneously reassess the cost and complexity of external technology stacks. As a result, the future seller toolkit may become more streamlined and strategically focused.
Brands that succeed in this environment will likely prioritize:
In other words, the competitive advantage may shift away from having the most tools toward using the right systems effectively.
The decline in third-party software usage does not mean technology is becoming less important. Instead, it reflects a maturing marketplace where sellers are becoming more deliberate about operational decisions.
Amazon continues to evolve rapidly, and the ecosystem of seller tools will likely evolve alongside it. But the fundamental driver of long-term growth remains the same: clear strategy supported by the right technology — not the other way around.
For brands navigating Amazon’s increasingly competitive environment, disciplined execution will remain the defining factor.
https://www.novadata.io/resources/news/60-percent-sellers-drop-third-party-software-2026
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