I don’t believe Amazon will ever restrict the number of sellers who can sell the same product.

To reduce sellers would mean voluntarily restricting competition.

More sellers means prices go down.

welcome to business its called competition part of being in business

Impact?

Listing violations.
Game consoles that say “console only” or “game not included” or “no controller”

Listing violations.
Amazon staff that sends you the wrong email when you report a listing violation.

Lower sales.
Your listing which is accurate is now on page 2 or 3 because the “console only” listings are 1/2 the price you sell your complete console for.

Lower sales
new sellers like to have the lowest price, and will undersell just to make a sale. Then the auto-repricers drop prices until their item sells.

YMMV

This is how the Amazon platform is set up.

To make the situation worse, many sellers are private labeling, identical items and listing it as their own brand, which results in a multitude of basically identical items, but with different brand names, imprinted on the product and packaging. Amazon Brand Registry was a good idea for manufacturers, but it has become a zoo, for every white labeled product.

What is the impact when more sellers are selling the same products?

More sellers then go on the forum and complain that 2 many sellers are selling the same product. Never ending story.

Selling the same product as another seller mentioned, just drives pricing down. Its so easy to see when a seller is just trying to brand a product I can go on alibaba and get a sample for free minus shipping and buy in bulk. It’s not very creative but I guess it works for Amazon and some sellers. If you create your own product line that is unique you can set your price without this problem.

It causes a race to the bottom effect. Especially non FBA sellers drop the price to almost break even so they can win the buy box.Still i find regulating the number of sellers disturbing and goes against the whole idea of free market and competition. Many of us started as new sellers on a listing. It just doesn’t sit right with me.

its all depends on your source of buying , the cheaper you buy the more profit you make , … you got the platform where to sell just find the profitable product and dont cry about competition , because competition will be always present on everything unless you are a manufacture or you have a direct contact with manufacturer and he or she sells their product to you only and allow you to sell his or her product you may be a winner … luck is involved in this matter .

The main reason many sellers are selling the same item is because amazon is sending emails to sellers informing them what products are selling best and that’s when sellers begin listing items they wouldn’t have otherwise thought of until amazon sent them the emails looks like amazon is pitting seller against seller to get sellers to reduce prices to it lowest. on the bay its buyer against buyer whoever make the highest bid wins the product amazon is the opposite it seller against seller whoever has the lowest price wins the buy box