In 2017, Amazon Marketplace added well over 300,000 small and medium-sized businesses that used the platform for their eCommerce sales channel.
Over half of all items sold on Amazon are sold by Amazon Marketplace sellers, with the majority of them using Amazon FBA to tap into Amazon’s global logistics network.
Recently, Amazon estimated that over 5 billion items sold with Prime Membership. This total included both sold by Amazon and Marketplace seller products.
Prime Members on average spent double on Amazon vs. non-Prime members. The latest estimates put Prime Membership in the U.S. at over 90 million customers.
“Entrepreneurs and small business owners are succeeding on Amazon – they sell half the products that Amazon customers buy, and more than 140,000 small and medium-sized businesses surpassed $100,000 in sales on Amazon in 2017. These businesses are reinvesting in their local communities – creating jobs and supporting local suppliers. We are proud of how the Amazon Marketplace helps empower so many small businesses, not just in the US, but around the world.”
Peter Faricy, Vice President for Amazon Marketplace
Amazon provided some fast facts about the success of third-party marketplace sellers in 2017.
- More than 300,000 SMBs in the U.S. started selling on Amazon.
- More than 140,000 SMBs selling on Amazon surpassed $100,000 in annual sales.
- Fulfillment by Amazon shipped billions of items worldwide.
- Amazon Lending surpassed $3 billion lent to small businesses on Amazon since the program started in 2011.
- Amazon Handmade expanded to encompass 10 categories offering customers more than one million handcrafted items from thousands of artisans and small business owners across all 50 states and more than 60 countries.
- During the Holiday Season, customers ordered more than 1 billion items from SMBs on Amazon, with more than 140 million items ordered between Thanksgiving and Cyber Monday.
“Since selling on Amazon, we’ve been able to grow our business from three to 40 employees, right here in Delray Beach, Florida. We recently launched on Amazon in the U.K., and are now shipping thousands of orders a day through Fulfillment by Amazon to customers around the world.”
Michael Dudley, managing director of Salon’s Choice
The power of Amazon’s Marketplace continues to grow. While Walmart and others are trying to catch up, Amazon expansion of its global fulfillment network seems to have no end.
There is no reason to doubt that 2018 may become as successful for Amazon and Amazon Marketplace sellers and an even more connected world will bring more opportunities for cross-border trade.
In Australia, Amazon just launched the first warehouse before Christmas.
And while the initial rollout was a bit sloppy, Australian Marketplace sellers should see considerable improvements in 2018 with more fulfillment centers and possible introduction of Amazon Prime Membership.
If you are selling on Amazon’s Marketplace, drop us a line how you are doing on the sales channel in the comments section below.