AmazonOn Tuesday released new dataDespite increasing scrutiny by lawmakers about its private-label business practices, it celebrates the success of sellers in its third-party marketplace.

The third-party marketplace was launched by Amazon in 2000. It allows anyone, from start-ups to large corporations to list their products on Amazon. The marketplace now represents approximately 60% of Amazon’s total retail sales.

In recent months, however, lawmakers, antitrust watchdogs as well advocacy groups expressed growing concern about Amazon’s treatment third-party seller and whether Amazon unfairly favors its own products in its marketplace.

Amazon published a Tuesday report that sought to identify the approximately 2 million small and medium-sized companies selling on Amazon’s site as its “selling partners.” Many of these businesses have been able to benefit from the rapid growth in e-commerce since the outbreak of the coronavirus.

Amazon stated that the average sales of third-party sellers in the U.S. was $200,000 for the 12-months ending August 31. This is an increase from the $170,000 achieved in the previous year. U.S. sellers have sold more than 3 billion items in this period than the previous year.

This report is ahead of Amazon’s annual seller conference on WednesdayThis article also highlights Amazon’s growth in third-party seller services as well as its increasing investment in the marketplace.

Amazon fulfilled half its approximately 500,000 U.S.-based sellers using Fulfillment by Amazon. The service ships and packages orders from Amazon warehouses. Amazon reported that FBA helped sellers increase their average sales by 20%-25%.

In order to conduct a more thorough antitrust examination of Amazon’s business practices and other related matters, regulators have zeroed inThe company examined its logistics operations and if it pressures sellers to use its services for preferential treatment in the marketplace.

Recent legislation has raised concerns about Amazon’s use of third party seller data for private label goods, and how those products are ranked in search results.

The House Judiciary Committee wrote Sunday to Andy Jassy, CEO of Amazon, asking him to address allegations that Amazon executives, including Jeff Bezos founder and chairman, lied or misled Congress regarding its private-label business practices.

This week ReutersAnd The MarkupPublished reports have shown that Amazon used its internal data to duplicate popular products, and to manipulate search results in favor of private-label products. These findings were based on earlier reports. The Wall Street JournalThe study found that Amazon employees had devised ways around Amazon’s policy so they could access seller data to launch their own products.

Amazon denied the allegations that it and its executives had misled the committee. It stated that its internal policies prohibit employees using data from single sellers to create its products.

CNBC’s Dharmesh Metcha, Amazon’s vice-president of customer trust, said that the media reporting about Amazon’s use seller data is inaccurate.

Mehta explained that you sometimes see speculation regarding short-term profits-driven actions. Amazon will not engage in such an action. Because we’re here for the long term with our selling partners, it doesn’t make much sense.

Amazon sells products from third-party sellers as well as its own under the AmazonBasics brand. Amazon has been accused of unfairly competing with third-party sellers on its platform. some alleging Amazon directly knocked off their goods.

They have also argued thatAmazon makes it difficult for third-party sellers to succeed through automated account suspensions and appeals processes. These can prove costly and financial crippling.

Mehta claimed that most third-party sellers on Amazon are “thriving”.

Mehta explained that “they have many choices in where they can sell their products.” You can set up your own website, or sell via other channels. They also have the option to sell offline. However, many Amazon sellers choose Amazon.

Mehta admitted that Amazon still has room for improvement in its relationships with merchants. This could be through addressing enforcement concerns or simplifying selling.

He added, “We need to keep working hard everyday to earn the trust of sellers.”

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