The Amazon Marketplace is hot for small businesses. Amazon released data that shows small businesses are doing well on the platform and continue to shatter records.
In the first half of 2017, 2 billion items listed by small businesses sold on the Amazon Marketplace. That is cumulative for all 11 marketplaces Amazon operates globally.
In 2016, more than 100,000 sellers sold over $100,000 in goods on the Amazon marketplace. Amazon fulfilled orders from marketplace sellers to customers in 185 countries.
The company also claims that an internal study shows that sellers created over 600,000 new jobs outside of Amazon. This growth is in addition to the jobs created by Amazon to handle fulfilment and warehousing for marketplace products.
“We started working with small businesses to sell online back in 2000 and have helped hundreds of thousands achieve success. Amazon Marketplace has grown so significantly that sales by small businesses now account for over half of the unit sales on Amazon sites around the world, and 2017 is off to a record-start with over 2 billion units sold,” said Peter Faricy, Vice President for Amazon Marketplace. “We love hearing the stories from these small business owners who are able to quit their day jobs to sell on Amazon full-time, hire more employees to grow their business, and, in many cases, start other businesses – it’s very energizing for Amazonians to know that the technology we are building is helping so many people pursue their dreams.”
AMAZON FBA IS VITAL TO SUCCESS
While Amazon did not release exact numbers, they did state that many marketplace items sold through their fulfillment centers.
With Amazon Prime, customers gain access to the same quick delivery on marketplace items as they do on Amazon sold items. In turn, this increases conversion for marketplace sellers.
PLAN FOR HOLIDAY SEASON PUSH
Now is the time for marketplace sellers to prepare for holiday season push. If you never sold on Amazon before, you should rethink your sales strategy for the upcoming season.
Even with increased competition from eBay and Walmart, the Amazon Marketplace is still a tremendous opportunity. At the recent Prime Day event, Amazon increased sales that day over 60% and stated many marketplace sellers even did better.
With over 300 million global customers, this is a sales channel that cannot be ignored by small businesses and entrepreneurs.