BofA Securities analyst Justin Post reaffirmed a Buy rating on Amazon.com Inc and set a price forecast of $275, citing continued e-commerce share gains and strong engagement from merchants and brands.
Sellers Hold Prices Despite Rising Costs
Post cited continued gains in e-commerce market share and strong engagement from merchants and brands.
His view follows discussions with sellers, marketplaces, and service providers at the Prosper Show 2026 conference in Las Vegas, where participants focused on retail media, artificial intelligence and brand development.
Post said many sellers have not raised prices yet despite higher oil and shipping costs.
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Merchants told him they are absorbing the impact of rising energy prices for now because they fear losing market share if they increase prices.
Several sellers acknowledged growing uncertainty about the macro environment but said they would consider price increases only if cost pressures persist.
Seller Base Shrinks As Top Merchants Gain Share
Post also highlighted signs of consolidation among Amazon’s top sellers.
Data from Skai showed traffic per seller has increased 31% since 2021, partly because the total number of sellers has declined.
New seller registrations fell 44% year over year in 2025, and the active seller base declined as well.
As a result, larger merchants are capturing a bigger share of shopper traffic. The number of sellers generating more than $100 million in gross merchandise value (GMV) has risen to 235, up from just 50 in 2021.
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AI Tools and Retail Media Drive Seller Strategy
Post noted that sellers do not yet see large language models (LLMs) significantly reducing direct traffic to Amazon.
Merchants said AI tools currently help customers evaluate products, but that most purchases still occur directly on Amazon.
At the same time, sellers are investing heavily in generative AI tools to improve product listings and ensure their products appear prominently in AI-driven search and recommendation systems.
He also emphasized the growing importance of retail media advertising on the platform. According to Skai, retail media spending increased 33% year over year in the fourth quarter of 2025, and the sector could reach $108 billion in 2026, up from $37 billion in 2021.
Despite the expansion of 277 retail media networks, Amazon still holds about 79% market share, with Walmart Inc trailing at roughly 8%.
Sellers told Post they are increasing advertising budgets on Amazon because the channel continues to deliver strong results.
Post also observed that AI-driven tools are becoming central to seller operations. Service providers at the conference showcased technologies that help merchants optimize advertising, improve search visibility, manage inventory and enhance fulfillment operations.
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One provider managing more than $1 billion in marketplace advertising spend said AI-optimized product listings can increase GMV by up to 80% and boost unit sales by 75% within two weeks.
He added that price and delivery speed remain the key drivers of e-commerce growth.
Amazon improved its Prime delivery speeds for the third consecutive year in 2025 and continues to expand its Amazon Now ultra-fast delivery program. Meanwhile, Walmart is investing heavily in its fulfillment services to compete on two-day delivery.
Post also noted that Amazon’s referral fees remain a major concern for sellers, as they typically start at 15% and can increase with additional services.
However, merchants continue to rely on Amazon because its large customer base drives significantly higher sales than other platforms.
Overall, Post believes Amazon remains a critical marketplace for sellers, supported by strong retail media growth, expanding AI tools, and continued e-commerce share gains.
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This article Amazon's 'Super-Sellers' Explode As AI Tools Drive Massive Online Sales Surge: Analyst originally appeared on Benzinga.com
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