Amazon Retail Media Poised for $108 Billion in 2026 as Seller Traffic Grows 31%
Bank of America reiterated its Buy rating on Amazon with a $275 price target, citing stable e-commerce traffic and ongoing share gains. Traffic per seller rose 31% since 2021 while new seller registrations fell 44% in 2025, and retail media spend is projected to hit $108 billion in 2026.
1. Bank of America Maintains Buy Rating
Bank of America reaffirmed its Buy rating on Amazon shares with a price target of $275, projecting ongoing share gains in the e-commerce segment and citing stable traffic trends.
2. Seller Activity Trends
Data from marketplace analytics show traffic per seller on Amazon increased 31% since 2021, while new seller registrations declined 44% year over year in 2025, indicating market consolidation among larger merchants; the number of sellers generating over $100 million in gross merchandise volume rose to 235 from 50.
3. Growth in Retail Media Segment
The retail media channel expanded 33% year over year in Q4 2025, with Amazon controlling approximately 79% of the market, and industry projections anticipate ad spend on the platform will reach $108 billion in 2026, driven by increased brand budgets.
4. AI Tools and Pricing Dynamics
Conference attendees observed that large language models enhance product consideration without reducing direct purchases on Amazon, and sellers are leveraging generative AI to optimize listings, while many have maintained pricing despite inflation concerns to preserve competitive positioning.