Will AWS Marketplace See Partner Attrition?

AWS Marketplace (and Amazon Partner Network overall) turned 10 years old in 2022. Marketplace has proven itself an integral part of AWS’ strategy for expanding end user access to cloud platforms and services. That will not change in 2023. In fact, one expert predicts even more ISVs, system integrators and managed service providers will join AWS Marketplace this year. One appealing reason is that they’ll be able to offer various payment methods to buyers.

This is also why channel partners need to tread with care.

While sales pipelines will accelerate because of simplified purchase cycles and the elimination of multiple contracting processes, partners will sacrifice some profit on AWS Marketplace.

“AWS will take 2-15% of the commission on the transaction from every sale on the AWS Marketplace,” Bal Heroor, CEO of data analytics firm Mactores, a top AWS partner, told Channel Futures. “Small and medium partners will have a great way to accelerate their services. In contrast, large partners could opt out of the marketplace to avoid AWS commissions.”

In other words, year 11 could be a critical one for AWS Marketplace and channel partner participation.