What is Amazon and its useful stats for sellers?
Interesting facts about Amazon
1. Amazon debuted as an online auction site
In its early years as a publicly traded corporation, Amazon started an auction website to compete with other online retailers. On the day the auction website went live in 1999, Amazon’s stock price increased by almost 8%.
2. Amazon Go
Customers may purchase groceries at the high-tech supermarket Amazon Go without ever having to wait in line for a cashier. Numerous Amazon Go store cameras use technology comparable to that used in self-driving vehicles. Customers can leave the store after finishing their purchase thanks to this technology, which maintains a virtual shopping cart. Automatically, a bill is delivered to their Amazon account.
3. The Business Is Developing Drone Delivery
Amazon is working on a cutting-edge delivery technology called Prime Air that would allow it to use tiny drones to deliver products to clients in only 30 minutes. The service is being created for the US and other nations.
4. More Than One and a Half Million Workers
At the end of 2020, Amazon had 1.271 million employees worldwide, more than Google, Facebook (now Meta), and Alibaba. At the end of the second quarter, its personnel count increased by 51% compared to the previous year.
5. Amazon Fire Tv
Amazon’s Fire TV responds to similar offerings from rivals like Apple TV and Roku. The product quickly absorbs market share. It had more than 34 million active users by the middle of 2019.
Amazon Product Sales Statistics
- 90% of customers price-check the products on Amazon; in other words, even if they find a product on another retailer’s website, they still compare its cost and specifications to those on Amazon’s product listings.
- Amazon receives more than 50% of its revenue from independent merchants.
- More than 140,000 third-party retailers had annual sales of $100,000.
- Over 1 million handcrafted products were available to buyers in all fifty states of the United States and 60 other countries with the expansion of Amazon’s Handmade category.
- FBA enables retailers to improve sales by 30–50%.
- Approximately 80% of Amazon vendors sell their goods on different channels. To boost competition, they introduced private label brands after realizing this.
Amazon Product Statistics
- According to a Feed visor poll of more than 2000 US consumers, 89% of consumers are more inclined to buy things from Amazon than from any other eCommerce website.
- The most recent statistics show that Amazon’s eBook sales increased by 46%.
- Apparel, kitchenware, home goods, and electronics are the category most favoured by Amazon Prime subscribers in the United States.
- According to the most recent figures from Feedvisor, 44% of customers in the United States have purchased more electronics products than any other category on Amazon, followed by apparel, jewellery, and shoes (43%) and home & kitchen products (39%).
- In general, SMBs (Small & Medium Businesses) sell more than 4000 products per minute, according to an official statistic released by Amazon.
- When looking to buy anything online but do not have a specific item, 23% of internet consumers initially visit Amazon.
Amazon Seller Statistics
- Amazon has 9.5 million sellers globally.
- 73% of Amazon sellers sell through FBA.
- New Amazon sellers earn between $26,000 and $810,000 per year. Pharma packs were the most popular item on Amazon in January 2021.
- Fifty-seven per cent of Amazon third-party sellers are between the ages of 27 and 44.
- A typical Amazon customer spends at least $700 annually, while a Prime member spends roughly $1300. This means that using Amazon FBA will raise your visibility, particularly to Prime buyers, increasing sales.
- Amazon charges its FBA sellers a fee for storage and fulfilment.
- The costs for holding your merchandise in Amazon’s warehouse are determined using the FIFO (First In, First Out) method.
Pros and Cons of Selling Products on Amazon
Pros of Selling Products on Amazon
1. Amazon’s Brand Recognition
Even more well-known than eBay, Amazon is the most popular online marketplace; it has more clients and merchandise than its rival. Due to their loyalty to the platform, this recognition means a user base is ready to be tapped immediately.
These customers believe in Amazon and are confident that any orders they place will be filled promptly. Customers also like how simple it is to return an item if there is a problem. All of this has a very favorable impact on purchasing intention.
2. Easy Startup
Starting an Amazon business is quicker and simpler than setting up a website from scratch. Since Amazon already has a sizable and devoted consumer base, you don’t have to worry about website design, and even a considerable portion of promotion is taken care of for you.
3. Fulfilment By Amazon (FBA) Service
The FBA services are incredibly useful for sellers. You ship your goods to an FBA centre, where they keep them for you without you having to free up space in your home or pay for storage. This is how it works. The FBA service packs and ships orders for you once you get them.
4. Lower Competition for Unique Items
Despite fierce competition for products in popular areas, you may succeed on Amazon if you have original products that address a consumer need.
5. Online Advertising Options
Take advantage of Amazon’s various advertising choices, which include:
● Demand-side platform (DSP) for off-site advertising from Amazon
● advertisements that are both audio and video
● sponsored products, displays, and brands.
Cons of Selling Products on Amazon
1. Market Fees
In addition to potentially boosting your sales, setting up a business on a marketplace exposes you to a new cost centre: marketplace fees. Most marketplace fees are subtracted as a portion of each sale and differ from website to website and even from category to category. Mathematics must line up in moderately commoditized, low-margin categories.
2. Constrained control
Although the marketplace architecture provides numerous benefits, it’s crucial to remember that there are drawbacks. Marketplaces exist to benefit themselves, not to benefit you. Instead of the vendors, they want the attention to be on the goods. The extent to which you may brand your presence, interact with customers, determine what products you can and cannot offer, and other things may be restricted.
3. High Competition
A long-term plan is necessary. You will be in competition with other merchants for the Amazon Buy Box if you are selling the same goods. Amazon’s product pages are organized by products, in contrast to Google Shopping, which arranges its product pages by merchants.
4. Order Management
One of the first things you should consider if you plan to sell your merchandise on several different marketplaces is how to sync orders. For a central order management system that is always up to date, you must ensure that Amazon orders are directly imported into your system.
Amazon does not support systematic shopping cart integration. Because of this, it is extremely difficult for retailers who offer their goods through different channels to manage orders and keep track of their stock levels. This approach has two significant drawbacks for sellers:
- An online store may sell items sold out during the day since Amazon’s stock status isn’t updated until after orders have been filled.
- Additionally, the retailer must manage two fulfilment systems: one for orders placed in his store and one through Amazon.
5. Complex Data Feed
Every day, Amazon wants to obtain updated product information. Additionally, they have highly precise demands. This implies that retailers must start from scratch when creating a specific Amazon feed.
You can add things to Amazon in a few different ways. As follows:
- Individually adding the products and manually entering the data one at a time.
- Adding your product data to an inventory file (spreadsheet) and uploading it.