Amazon is a successful online retail platform that relies on a digital marketplace that is seamlessly linked with the primary retail buying experience. Amazon is based in Seattle, Washington, and has been in business since 1994. Selling on Amazon can take the form of either first-party (1P) vendor sales, in which vendors send their inventory to Amazon, who in turn controls the pricing and includes the phrase “ships from and sold by Amazon.com” on product listings, or third-party (3P) marketplace sales, in which third-party vendors sell their inventory to Amazon.com. In the year of 2020, 446,000 sellers have joined the Amazon marketplace.
Before starting any business, it is essential to do thorough research and learn all there is to know about the company you want to invest in. Twenty eye-opening Amazon third-party seller data are presented in this post to assist you in making smarter business decision on Amazon.
- In the year of 2020, 446,000 sellers have joined the Amazon marketplace. (Amazon)
- 1.5 Million active seller on amazon and total of 6.3 million sellers. (Amazon)
- According to our estimates, just 17% of Amazon sellers are profitable, but that figure will likely decrease in the future years due to increased competition.
- In the second quarter of 2021, 56 percent of paid units were sold by third-party sellers. (Amazon.com)
- Amazon third-party merchants sales increased by 8% between 2016 and the second quarter of 2021, according to data from the company. (Amazon)
- In 2020, the e-commerce giant generated about $80.5 billion in third-party seller services, accounting for a nearly 50% increase over 2019.
- The shopping event that drives the largest sales increase for Amazon sellers is Black Friday followed by two of the company’s events, Prime Day and Amazon Summer Sale with 17% of brands experiencing increased sales during this event.
- Third-party sellers sell products, totaling 50% of total sales on Amazon.
1. In 2021, sales for independent businesses selling on Amazon grew over 50% compared to 2019.
During the holiday season in 2021, small and medium-sized businesses in the U.S. sold nearly one billion products in Amazon’s store.
2. About $300 billion of Amazon’s GMV $490 billion is from third-party sellers.
Third-party sellers generate 62.2% of Amazon’s gross merchandise value (GMV). Third-party sellers generate more than half of Amazon’s gross sales.
3. 15% of the $300 billion sold by third-party sellers are seller fees.
The Marketplace numbers are hidden in Amazon’s SEC reporting. According to the report, it is estimated that seller fees are 15% of the $300 billion or $45 billion. Fulfillment by Amazon is another 10% and ads are about 15% too.
4. Based on the GMV estimate, Amazon held about a 50% share of the $971.6 billion non-store retail markets in 2020.
Amazon controls about half of the non-store retail market in the world.
5. In 2021, Amazon’s third-party seller services reached $25 billion accounting for a 38% increase on a year-on-year basis.
As of the second quarter of 2021, Amazon’s net sales generated grew by nearly 38%. Third-party seller services included commissions, fulfillment and shipping fees, and other services related to third-party sellers.
6. In the same period (2021), third-party sellers made 56% of Amazon’s paid unit sales.
Third-party sellers are an important component of Amazon’s growth accounting for nearly sixty percent of Amazon’s paid unit sales.
7. In the fourth quarter of 2020, third party service sellers on amazon generated revenue valued at $ 27.33 billion
According to a survey by Statista, this was the peak period for Amazon third-party sellers.
8. The worldwide value of third-party seller services of Amazon declined in the first quarter of 2021 to 23.71 but rose to 25.09 in the 2nd quarter of 2021.
Amazon’s third-party seller value encountered a slight decline from $27.33 billion in 2020 to $25.09 in the second quarter of 2021.
9. Amazon generated $280.5 billion in revenue in 2019 up from was $232.9 billion in 2018 and $177.9 billion in 2017
Amazon is the largest online retailer in the world. It has continued to experience steady growth in revenue since 2017 to date.
10. Around 50% of all sales on Amazon marketplaces come from third-party sellers.
Third-party sellers account for nearly half of all sales in Amazon marketplaces.
11. 3.3 million new sellers have joined Amazon marketplaces worldwide since 2017 January.
This statistic shows that new sellers who have joined Amazon since 2017 may translate to 3,718 new sellers every day. Of the new sellers, over a million joined the US marketplace, followed by India with 400,000 new sellers and the UK with around 300,000 new sellers.
12. In the US, more than 300,000 third-party sellers started selling on Amazon in 2017.
In 2017, there were more than three hundred thousand third-party sellers who joined Amazon in the US.
13. More than 140,000 third-party sellers exceeded $100,000 in annual sales in 2017
Amazon Handmade expanded, offering customers more than one million handcrafted items across all 50 US states and more than 60 countries.
14. This year (2021) 446,000 sellers have joined the Amazon marketplace.
(Source: Market place pulse)
This means that there is an addition of 446,000 new sellers to the millions of sellers already on Amazon. This addition is equivalent to 1,957 new sellers every day, or 81 every hour, or even one in every minute. At this rate, 714,000 new sellers will have joined Amazon by the end of 2021.
15. By 2021, the Amazon marketplace has 6.3 million total sellers worldwide.
(Source: Market place pulse)
Of the 6.3 sellers, only 1.5 million were active sellers. The rest no longer have products listed for sale. Most sellers join amazon with expectations of reaping big overnight but lack the persistence to continue growing their businesses.
16. In the second quarter of 2021, third-party sellers sold 56% of paid units.
Amazon has a very successful online retail platform and a thriving digital marketplace integrated with the main retail shopping experience. This formula has seen Amazon’s net revenues multiply in recent years.
17. In 2020, the e-commerce giant generated approximately $80.5 billion in third-party seller services.
Last year there was an increase of nearly 50% in third-party sales over the previous year. In the context of the Covid-19, Amazon Prime Day played a particularly decisive role for small and medium-sized businesses around the world, many of which had to turn to online sales overnight to survive.
18. The top Amazon category in sales is Home and Kitchen at 40% followed by Sports and outdoors at 21%
(Source: Jungle scout)
Home and Kitchen products attract more buyers in Amazon followed by sports and outdoors. Toys, games, beauty, and personal care accrue 19% of sales each.
19. Average profit margins for most Amazon sellers range between 17 and 26% depending on the category.
(Source: Jungle scout)
Profit margins vary a lot depending on the cost one incurs when sourcing a product and how much the product can be sold.
20. The most profitable products are computers standing at 28% followed by video games and handmade products at 26% each.
(Source: Jungle scout)
Books are also good at profit-making on Amazon at 25%. Others are App and games, CDs and Vinyl at 24% each, home and kitchen, pet supplies, beauty, and personal care together with kitchen and dining all stand at 23%. Luggage and travel gear close the pack of the most profitable products on Amazon at 22%.
Third-party sellers are a critical component of Amazon’s overall sales strategy. The facts and statistics presented in this article will provide the top sellers with a competitive advantage over their competitors. This is due to the fact that the data will assist them in determining where to concentrate their efforts in the e-commerce industry. Many vendors in a popular category, such as Home and Kitchen, find a niche with a high volume of sales and concentrate their efforts on it in order to get a piece of the pie.
A careful examination, on the other hand, will show that this specific area is severely oversaturated, with numerous vendors boasting hundreds of ratings and offering very cheap prices. Due to the fact that many new sellers do not take into consideration this fact, they may wind up trying to offer an item that cannot compete in an established market.
When selling on Amazon, or any other platform, it is critical to understand where and what customers are purchasing from your competitors. Creating a product in a niche or area where just a small number of people shop is likely to cause you some difficulties.
In this post, we hope that the data provided will assist you in better understanding the third-party seller market on Amazon, allowing you to make informed choices while beginning or growing your Amazon company.