Is Amazon Really A Monopoly?

Is Amazon a monopoly, or just really, really good at selling you stuff you didn’t know you needed at 11:47 p.m. on a Tuesday?

Let’s unpack what “monopoly” actually means, what regulators are arguing, what Amazon is doing in practice, and what this all means for shoppers, sellers, and the future of online retail.

First, what is a monopoly, really?

We throw the word around a lot (usually when our favorite app changes prices), but in antitrust law “monopoly” has a very specific meaning.

In U.S. law (under Section 2 of the Sherman Act), a company is considered to have monopoly power when:

1. It dominates a relevant market (usually something like 70%+ share, depending on the facts), and
2. It maintains that dominance through exclusionary or anticompetitive conduct, not just by being better, cheaper, or more innovative.

Economists often define a monopolist as a firm that faces little to no meaningful competition for a product or service that has no close substitutes. Think local water utility, not a popular restaurant.

So the key questions are:

• What market is Amazon supposedly monopolizing?
• How big is its share of that market?
• And is it using that power in ways that harm competition and consumers?

Keep those three in mind as we go.

How big is Amazon, actually?

Huge. But “huge” and “monopoly” are not the same thing.

According to industry estimates, Amazon accounts for roughly one‑third to two‑fifths of U.S. online retail sales, depending on methodology. One analysis cited by the Wall Street Journal pegs Amazon at about 38% of U.S. online retail.

If you zoom out to all retail (online + brick-and-mortar), Amazon’s share drops dramatically to the single digits, around 3–6% of total U.S. retail sales. (independent.org)

Here’s the basic picture:

• Online retail: Amazon is the largest player by far.
• All retail: Amazon is a big fish in a very, very large pond.

And that’s before you even look at Amazon’s other major businesses:

• AWS (Amazon Web Services): The world’s largest cloud infrastructure provider.
• Advertising: One of the largest digital ad platforms in the U.S.
• E‑books: Dominant share of e‑book sales.

Those businesses raise their own competition questions, but most of the current “monopoly” debate is about Amazon’s online marketplace and retail platform.

So why is the FTC suing Amazon as a “monopolist”?

In September 2023, the Federal Trade Commission (FTC) and 17 state attorneys general filed a major antitrust lawsuit against Amazon. They argue that Amazon illegally maintains monopoly power in two specific markets: (americanactionforum.org)

1. The online superstore market for consumers
   Basically: large online stores offering a very wide range of products (the FTC’s definition tends to include Amazon and a few generalist rivals like Walmart and Target, but exclude specialty sites, physical retailers, and other alternatives).
2. The online marketplace services market for sellers
   This is the set of services Amazon provides to third‑party sellers—listing, payment processing, logistics (Fulfillment by Amazon), advertising, and access to Prime customers.

Under the FTC’s narrower online-superstore definition, Amazon’s share is alleged to be over 60–66%. In marketplace services for sellers, its share is likewise alleged to be very high. (americanactionforum.org)

The government’s core claims focus less on size and more on conduct. According to the complaint, Amazon:

• Suppresses price competition by penalizing or burying sellers who offer lower prices elsewhere (or even on Amazon itself) — effectively using its ranking and visibility tools to keep prices from dropping.
• Ties access to Prime customers to use of Amazon’s own logistics/fulfillment services (FBA), making it hard for sellers to mix and match cheaper or more efficient alternatives.
• Raises seller fees significantly, creating what critics call “monopoly rents” — i.e., extracting higher fees from sellers who feel they have no realistic alternative to Amazon’s marketplace. (americanbar.org)

If the FTC wins, it won’t just be a slap on the wrist. Potential remedies could include:

• Bans on certain contract terms or fee structures
• Structural separation between Amazon’s marketplace and some of its logistics/retail operations
• Changes in how Prime and Buy Box rankings work

Amazon’s comeback: “We’re not a monopoly, competition is everywhere.”

Amazon, unsurprisingly, strongly disagrees.

Its counter‑arguments look like this:

1. The market is much broader than the FTC claims.
   If you define the market as “places consumers can buy stuff,” then Amazon competes with:
   • Walmart, Target, Costco, and countless brick‑and‑mortar chains
   • Specialty online retailers (Wayfair, Chewy, Zara, etc.)
   • Marketplaces like eBay, Etsy, and more

   In that broader world, Amazon’s share of total U.S. retail is tiny (mid‑single digits). (independent.org)

2. Retail is brutally competitive.
   Consumers comparison-shop across Google Shopping, price trackers, and multiple apps. If Amazon raises prices too much, people defect to competitors. Industry analysts critical of the FTC call its narrow “online superstore” definition “distortive” and “unrelated to economic reality” for leaving out obvious substitutes like physical stores and single‑brand sites. (independent.org)
3. Many of the challenged practices have pro‑competitive justifications.
   • Encouraging price parity can prevent sellers from gaming the system (e.g., using Amazon as a free showroom but charging less elsewhere).
   • Tying Prime eligibility to certain logistics standards might improve delivery speed and reliability — which consumers value.
   • Fees fund infrastructure: warehouses, two‑day shipping, customer service, and so on.

Critics of the case argue that what looks like “monopoly exploitation” is sometimes just the cost of building and maintaining a massive, high‑quality logistics network that many small businesses rely on.

The real battleground: how you define “the market”

If you want to know whether Amazon is a monopoly, the most important (and strangely nerdy) question is: What is the relevant market?

Two rough options:

1. Narrow market: “online superstores” and “online marketplace services”

This is closer to the FTC’s view. Under this approach, only very large, general-purpose e‑commerce platforms count.

• Result: Amazon’s share looks very high (60%+), and its control over visibility, search ranking, and Prime becomes central to whether sellers can survive. (americanactionforum.org)
• This makes it easier to argue that Amazon has monopoly power in those specific markets.

2. Broad market: “all retail” or “all ways to sell/buy stuff”

This is closer to Amazon’s narrative and many skeptical economists’ views.

• Result: Amazon’s share shrinks to single digits in the U.S. retail market; plenty of competitors online and offline.
• That makes it harder to say Amazon has classic monopoly power, even if it’s the biggest online player.

Courts have wrestled with this market‑definition question in other big tech antitrust cases, including those against Google and Meta. In some instances, regulators won (e.g., Google has been found to hold illegal monopolies in certain search and advertising markets); in others, defining the market narrowly enough to show monopoly power has been a stumbling block (like the FTC’s loss—currently on appeal—in its Meta social networking case). (en.wikipedia.org)

Does Amazon act like a monopoly from a seller’s point of view?

Legal definitions aside, many third‑party sellers would say: “It sure feels like one.”

Consider a typical small brand that sells on Amazon:

• Customer access: Amazon is where the customers are. Not being on Amazon can mean losing a massive chunk of potential buyers.
• Fees: Over the past several years, Amazon’s take from seller fees (listing, fulfillment, advertising) has grown rapidly and, in some markets, outpaced growth in actual sales. Research in Europe and the UK, for example, has documented significant increases in logistics and storage fees from 2017 to 2023, while the FTC alleges similar patterns in the U.S., including nearly 30% increases in certain fulfillment fees between 2020 and 2022. (americanbar.org)
• Dependence: If Amazon tweaks its algorithm, raises fees, or changes Prime rules, a small business’s revenue can tank overnight.

Is that illegal monopoly behavior? That’s exactly what the courts will have to decide:

• If sellers have realistic, scalable alternatives (Shopify stores, Walmart Marketplace, social commerce, etc.), then Amazon’s tough terms might be harsh but still legally competitive.
• If most sellers are effectively locked in and can’t meaningfully leave without destroying their business, the argument for monopoly power gets stronger.

What about consumers — are we being harmed?

This is where things get tricky.

Traditional U.S. antitrust enforcement has focused heavily on consumer welfare, usually interpreted as:

• Are prices higher?
• Is quality worse?
• Is innovation slowing?

On those metrics, Amazon looks… actually pretty good in many respects:

• Prices are often lower or competitive versus brick‑and‑mortar.
• Selection is enormous.
• Shipping has gotten faster and more reliable.

Regulators, however, are making more subtle arguments:

• Prices could be lower if Amazon didn’t use certain tactics to suppress price competition and keep rivals smaller.
• Innovation in alternative channels (like independent seller sites or rival marketplaces) could be stronger without Amazon’s alleged exclusionary conduct.
• Higher fees on sellers may be passed on to consumers in the form of higher prices or degraded product quality.

This shift—from looking only at immediate prices to considering long‑term competition and market structure—is showing up in cases against Amazon, Google, Apple, and others.

So… is Amazon a monopoly or not?

Given all that, here’s a nuanced but honest answer:

• Amazon is not a classic, across-the-board monopoly over retail. You still have Walmart, Target, Costco, local stores, and countless online competitors.
• Amazon likely has something close to monopoly or at least dominant power in narrower markets, especially:
  • General‑purpose online superstores
  • Marketplace services for third‑party sellers using its platform

Whether that crosses the legal line into “illegal monopoly” depends on:

1. How the courts define the market, and
2. Whether Amazon’s practices (fees, self‑preferencing, Prime/fulfillment tying, price‑parity rules) are found to be exclusionary and harmful to competition, rather than just aggressive but legitimate competition.

As of early 2026, these cases are still playing out. Just as Google has been found to hold illegal monopolies in certain search and ad markets while Meta dodged a monopoly finding in social networking (for now), Amazon’s fate will come down to the details. (en.wikipedia.org)

Short version:
– In ordinary conversation: “Amazon is kind of a monopoly for online shopping” isn’t a wild take.
– In legal terms: whether Amazon is an illegal monopoly is an open question the courts are actively deciding, not a settled fact.

What this means for you (shopper, seller, or just curious human)

If you’re a shopper:

• You still have meaningful alternatives: brick‑and‑mortar, direct‑to‑consumer websites, other marketplaces.
• If you care about competition, occasionally buying directly from brands or alternative platforms helps reduce over‑dependence on any single giant.

If you’re a seller:

• Treat Amazon as a crucial channel, not your only one.
• Invest in your own website, email list, and at least one additional marketplace where it makes sense.
• Watch regulatory developments: future rulings could change Amazon’s fee structures, Prime requirements, or how Buy Box rankings work — all of which affect your margins and strategy.

If you’re just fascinated by big‑tech power:

• Follow the Amazon, Google, Apple, and Meta cases together. They’re collectively redefining what “monopoly” means in the digital age.
• Pay attention to the tug‑of‑war between short‑term consumer benefits (low prices, fast shipping) and long‑term market structure (who actually gets to compete).

Final thought: asking a better question

Instead of only asking, “Is Amazon a monopoly?” a more useful question might be:

“Does Amazon’s power in online commerce give it too much control over the terms of trade — for sellers and, indirectly, for consumers?”

That’s the issue regulators, courts, and the market itself are wrestling with right now.

And the outcome won’t just determine Amazon’s future — it’ll shape how every big platform in tech is allowed to behave in the next decade.

How To Use A Vanilla Gift Card On Amazon

Quick Answer: Can I Use a Vanilla Gift Card on Amazon?

Yes. In most cases, you can use a Vanilla Visa, Mastercard, or Discover gift card on Amazon as if it were a regular debit or credit card.

However:

• You usually can’t add it as a permanent “gift card balance” like an Amazon gift card.
• You’ll add it under “Credit or debit card” during checkout.
• You need to match the amount charged to the remaining balance on the Vanilla card (or at least not exceed it).

Step 1: Check Your Vanilla Gift Card Balance First

Before you try to use your Vanilla card on Amazon, find out exactly how much is on it. If your order total is even a few cents over your remaining balance, Amazon will likely decline the card.

You can check your balance by:

1. Visiting the website on the back of the card (for example, for some cards it’s vanillagift.com, but check your card for the correct URL).
2. Entering the card number, expiration date, and security code (CVV).
3. Or calling the toll‑free number listed on the back of the card.

Write down or remember the exact balance (like $23.47, not just “about twenty bucks”).

Step 2: Decide How You Want To Use It on Amazon

You have two main ways to use a Vanilla gift card on Amazon:

1. Use it as a regular credit/debit card at checkout (most common)
2. Use it to buy an Amazon eGift Card (and then load that to your Amazon balance)

Let’s walk through both.

Option 1: Use Your Vanilla Card as a “Credit or Debit Card” at Checkout

This is the simplest approach, and it works as long as:

• Your Vanilla card has enough balance to cover the entire charge you’re putting on it, OR
• You do some manual splitting (explained in the next section).

How to add a Vanilla gift card at Amazon checkout

1. Add items to your cart as usual on Amazon.
2. Go to Checkout.
3. Under Payment method, choose “Add a credit or debit card.”
4. Enter the card number, expiration date, and CVV from your Vanilla Visa/Mastercard/Discover.
5. For the name on card, you can usually put your own name (even though it’s a gift card). If the Vanilla card website lets you set a name and billing address, use those for extra safety.
6. Save it and select it as the payment method.

Important: the total must not exceed the Vanilla balance

If your Amazon order total (including tax and shipping) is more than your Vanilla balance, Amazon may decline the card altogether. Amazon doesn’t automatically split a single order total across multiple credit cards.

Workaround:

• Adjust your cart so the total is less than or equal to the balance on your Vanilla card. Think: if your balance is $25, aim for something like $24–$24.50 to leave room for tax.

Option 2: Turn Your Vanilla Gift Card Into an Amazon Gift Card Balance

If you want less hassle in the future, you can use your Vanilla card to buy an Amazon eGift Card and send it to yourself.

Why this is smart:

• Amazon gift card balance is easy to use; it always applies automatically.
• You avoid issues with partial balances on the Vanilla card.
• You can combine balances from multiple Vanilla cards into one Amazon balance over time.

How to convert Vanilla → Amazon balance

1. Go to “Gift Cards” on Amazon.
2. Choose “eGift Card” (or “Email” delivery).
3. Set the amount to something slightly less than the balance on your Vanilla card.
   • Example: Your Vanilla card has $50.00.
   • Buy an Amazon eGift card for $49.00–$49.50 to leave room if there are any small authorization holds.
4. In “To”, enter your own email address (the one linked to your Amazon account is ideal).
5. At checkout, select your Vanilla card as the payment method.
6. Complete the purchase.
7. When the email arrives, redeem the Amazon eGift card to your account.

Now your money lives inside Amazon as gift card balance. From here on out, checkout is painless.

“My Vanilla Card Has a Weird Remaining Balance” (How To Use the Last Few Dollars)

The most annoying part of a Vanilla gift card is ending up with random leftovers like $1.83 that never get used.

Here are a few ways to fix that, specifically for Amazon:

Method 1: Buy a small Amazon eGift card for the leftover amount

1. Check the exact remaining balance on your Vanilla card again.
2. Go to Amazon’s Gift Cards → eGift Card section.
3. Set the amount to slightly less than the remaining balance.
   • If the balance is $3.12, you might try an eGift for $3.00.
4. Pay with the Vanilla card, send to your own email.
5. Redeem the eGift card to your Amazon account.

You might still have a few cents left on the Vanilla card—but you’ll at least rescue most of the money.

Method 2: Use it on a low-price Amazon purchase

You can:

• Put a cheap item in your cart (like $1.99–$3.99).
• At checkout, pay with the Vanilla card for that entire order.

If the order total is less than or equal to the remaining balance, it should go through and clean out most of the card.

How To Split Payment Between a Vanilla Card and Another Card on Amazon

This part trips a lot of people up.

Amazon generally doesn’t let you split one order across two credit/debit cards during a single transaction. You can, however, combine:

• Gift card balance + one credit/debit card, or
• Put part of the order on one payment method by buying a gift card first.

Practical split-payment workaround using Vanilla

Let’s say:

• Your cart total is $60.
• Your Vanilla card balance is $25.

To “split” this across your Vanilla card and your main credit/debit card:

1. Use the Vanilla card to buy a $25 Amazon eGift card (or maybe $24.50 to be safe).
2. Redeem that to your Amazon account.
3. Now go back to your cart and check out.
4. Amazon will apply your $24.50–$25 Amazon gift card balance first.
5. The remaining amount (about $35) will be charged to your regular card.

Boom—effective split payment.

Do I Need To Register an Address for My Vanilla Gift Card?

Some Vanilla and other prepaid gift cards work more smoothly online if you register a billing address.

Here’s what to do if your card allows it:

1. Go to the website on the back of your Vanilla card.
2. Look for an option like “Register Card” or “Update Billing Information.”
3. Add your name and address (use the same address you use on Amazon).

Then, when you add the card on Amazon as a payment method, make sure the billing address matches what you registered on the Vanilla card site.

Not all Vanilla-branded cards require this, but if Amazon keeps declining the card, this is one of the first fixes to try.

Common Problems (and How To Fix Them)

1. “Amazon keeps declining my Vanilla card.”

Likely causes:

• The order total is higher than your Vanilla balance (including tax/shipping).
• There’s a temporary authorization hold reducing your available balance slightly.
• The billing address doesn’t match what’s on file for the card (if applicable).

Fixes:

• Try a smaller purchase or buy an Amazon eGift card for slightly less than the balance.
• Double‑check the card number, expiration, and CVV.
• If you registered a billing address for the card, make sure it matches on Amazon.

2. “Amazon only let me use part of the balance” / “Where did the rest go?”

Sometimes you’ll see a pending charge or a small test authorization. That can temporarily hold a bit of your balance.

• Check your balance again after a day or so.
• If the pending charge drops off, your available balance might go back up slightly.

If you’re stuck with weird pennies left, go back to the “use the last few dollars” methods above.

3. “Can I store my Vanilla card in my Amazon Wallet for later?”

Yes, you can add it like any other card and keep it on file.

But:

• Once the balance is fully used, the card won’t work anymore.
• If you forget there’s only a small balance left and try to use it for a big order, it’ll likely get declined.

This is why many people prefer the Vanilla → Amazon gift card path and then just delete the card from their wallet afterward.

Real-Life Examples So You Can See It Work

Final Tips To Make Your Vanilla Card Play Nice With Amazon

To recap, here’s your cheat sheet:

• Check the balance first on the Vanilla card’s website or phone number.
• Use the card as a credit/debit card at checkout, not as an “Amazon gift card.”
• Keep your order total at or below the card balance when using it directly.
• For more flexibility, use the Vanilla card to buy an Amazon eGift card and load that to your Amazon balance.
• To use tiny leftovers, buy small eGift cards for slightly less than the remaining amount.
• If it keeps getting declined, double‑check address registration, balance, and card info.

Do those things, and your Vanilla gift card will stop being that annoying piece of plastic in your wallet and start being… well, stuff on your doorstep.

Happy spending.