What is Amazon and its useful stats for sellers?

Amazon is the only undisputed market leader in eCommerce that both online vendors and customers cannot ignore. With over 2.45 billion monthly visits to its app and website combined, the company has gone a long way since it began as an online bookseller. It is a one-stop shop for clients worldwide to buy anything from electronic devices to home products. Due to its wide selection of products and competitive pricing, Amazon.com leads the commerce sector with over 564 million products sold in the U.S. market alone. The most recent Amazon Statistics are resounding proof of its accomplishments on a worldwide scale. Let’s take a closer look at some surprising Amazon seller statistics, FBA statistics, product sales statistics, and overall Amazon statistics.
Due to its wide selection of products and competitive pricing, Amazon.com leads the commerce sector with over 564 million products sold in the U.S. market alone. The most recent Amazon Statistics are resounding proof of its accomplishments on a worldwide scale. Let’s take a closer look at some surprising Amazon seller statistics, FBA statistics, product sales statistics, and overall Amazon statistics.

About Amazon

In 1994, Jeff Bezos started the leading e-commerce behemoth Amazon in his modest garage. It primarily started as an online bookseller, but it has since evolved and shows no signs of slowing down.
Since then, Amazon has experienced rapid expansion and amassed a sizable global client base to become the top online retailer. Amazon has changed the foundations of internet selling due to its huge success. Online buying is now indisputably synonymous with Amazon, much as “search” is with Google.

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.

Amazon currently runs 30 Amazon Go stores nationwide, including 24 in Chicago, New York, San Francisco, and Seattle. These properties have frontages ranging from 450 to 2,700 square feet in busy urban areas. The Go stores also include two Starbucks Pickup with Amazon Go stores, one in Manhattan’s Upper East Side and the other close to Time Square.

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.

As per CNBC, amazon prime air will start making deliveries by the end of 2022 in Lockeford, California, Texas and College Station. Amazon defended that drones are safe. The drone MK27-2 has a diameter of around five and a half feet and weighs 80 pounds. Deliveries must fit in a single box roughly the size of a shoe box and can only transport packages weighing less than five pounds.
Additionally, Amazon revealed the MK30, the upcoming model, which it said will launch in 2024. According to Amazon, the MK30 will be 25% less noisy, smaller, and able to fly in light rain than the MK27-2.

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.

The streaming industry tracks market share for the box and the stick independently. Amazon’s Fire TV box held a 28.5% market share in the United States but 57% of the market for sticks.
Industry commentators have praised it for its adaptability: Users of a Fire TV box can stream live TV and access hundreds of episodes and movies waiting in line. Additionally, it is a well-liked and well-known gaming device.

Amazon Product Sales Statistics

As per Statista, here is a list of important 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

To thoroughly understand Amazon’s accomplishments, the following is a collection of specific 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

The following set of Amazon FBA Statistics may help you build your business:
  • 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

Most people have bought something from Amazon but have yet to try to sell something there. Both large corporations and small businesses use Amazon to increase sales.
Nevertheless, despite Amazon’s widespread use and the numerous advantages of using the platform as a seller, there are also negatives. This article will discuss both the benefits and drawbacks of selling on Amazon.

Pros of Selling Products on Amazon

There are undoubtedly many positive aspects of being an Amazon seller. There are many benefits to be grateful for, even though it may take some time to see a profit. Let’s discuss them.

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.

Once you have your inventory, you can get started by making an account and displaying your products, whether you manage it yourself or use a Fulfillment by Amazon service (more on that later).

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.

If you want to know more about this service, then read our next article.

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.

Even better if the product has a distributor because that prevents another seller from buying in bulk and competing with you on price.
When it comes to unique goods, you get to set the price, and, at least initially, you’ll effectively corner the market with your listings. You may still profit after paying the listing cost and the Amazon commission.
However, bear in mind that if you market a unique product that becomes well-liked, chances are that other merchants will quickly realize this and attempt to market the same or related goods. To stay on top of the game, you must always consider what may happen next.

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.

Since Amazon already has everything you require built-in, you don’t need to worry about using an off-platform ad service. Additionally, you may always advertise your goods in other ways down the road, but this will get you going quickly and easily.

Cons of Selling Products on Amazon

The benefits of selling on Amazon must be balanced against the drawbacks, as there are always two sides to every story. Additionally, the greatest approach to making a wise choice is to fully understand what you are getting into. Let’s leave.

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.

Ensure you thoroughly grasp the marketplace’s fee structure and understand your margins before selling your products.

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.

Furthermore, there is nothing stopping marketplace operators—such as Amazon, Sears, and others—from bypassing third-party vendors, determining the most popular products, and stocking them themselves.

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.

As a result, when numerous merchants are selling the same product, Amazon will select the best seller. The items from the featured vendor are added to the customer’s shopping cart when they click the Add to Cart button.
The winner takes it all as usual. The Buy Box is even more crucial on mobile devices because users are less likely to scroll down and check out other sellers, given the current tendencies in mobile shopping. The competition also gets tougher as new players enter the Amazon Marketplace.

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.

A unique ASIN number must be assigned to each product, and the Amazon-API must be used for all uploads. For merchants, the technical work required to connect with an API is too expensive and difficult.

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.

Conclusion

There is so much information on the internet about Amazon, why people should sell on amazon, and why people should not. So, if you are confused about your product, where you should sell it, and how you can grow your sale on online platforms like eBay, Amazon, and other websites. We, Faith e-commerce Services, is the best e-commerce partner for your company. So, let us know your concern about your ecommerce business and book an appointment with us free of cost.

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