Posted on 05/24/2018 7:45:42 PM PDT by 2ndDivisionVet
A survey found that 19 percent of third-party merchants that sell goods on Amazon have made more than $1 million in sales this year, an increase from 10 percent in 2017. It also found that 3 percent made more than $10 million, an increase of 1 percent from last year.
Feedvisor, an eCommerce company that helps merchants price goods on Amazon and other online marketplaces, surveyed 1,200 Amazon merchants this year and 1,600 in 2017, and was distributed to the same sellers both years. Nearly 50 percent of the merchants surveyed sell almost exclusively with Amazon, with revenue from the eCommerce marketplace accounting for 81 percent to 100 percent of their sales.
Dani Nadel, CMO and general manager of Feedvisor, said, “With Amazon expected to continue its relentless growth, it is important for third-party sellers to keep their finger on the eCommerce leader’s pulse. However, it is even more important for them to understand the habits and priorities of the other sellers that they cohabitate with on Amazon’s marketplace. This will grant sellers visibility into their performance, identify where they have room for development and improvement, and uncover tools and practices that other sellers are utilizing in order to operate and perform at scale.”
In the United States, where 13 percent of survey respondents are based in California, the top state for Amazon sellers. Other top locations include Florida, New York, Texas, and New Jersey. In addition, nearly one-fifth of Amazon sellers surveyed live outside of the U.S.
Of course, merchants making big bucks is a good thing for the eCommerce giant. Amazon brought in $9.3 billion in Q1 revenue from them in commissions, fulfillment and shipping fees, and other third-party seller services — up from $6.4 billion during the same quarter in 2017.
Though Amazon continues to thrive with merchants, eBay has lost ground over the last year, with 52 percent of Amazon merchants also selling on eBay in 2018, down from 65 percent in 2017.
In the meantime, Walmart and Jet’s combined share has grown from 17 percent to 25 percent.
The 19%. Isn’t this unjust?
M I N the wrong business?
The Amazon fees of 15% of sales and the cost of merchandise mean Amazon is probably making more than the independent merchants.
The Amazon fees of 15% of sales and the cost of merchandise mean Amazon is probably making more than the independent merchants.
...
Perhaps. What do malls charge their stores?
Exactly! Plus a retail store requires heating, air conditioning, insurance, fixtures, payroll, taxes, benefits, housekeeping, on-call repairmen, a phone system, advertising, etc...
1mMM in sales? Is that profit? Or total sales? If the latter, that ain’t much.
Bezos is a genius for creating the #1 small business idea pirating system on the planet.
eBay has lost ground with merchants but I find myself buying more from eBay and less from Amazon.
That is sad.
30 years ago it was 30% to 40%. They provided parking and "security". But they also had onerous rules, such as open by 9 AM every day even if there were no customers and close at at a certain hour, no earlier.
Personally, I would rather give Amazon 15%, their web site is open 24 hours without me having to be there.
You have to read between the lines of this survey. The fact that fewer Amazon sellers are also selling on Ebay does not mean that Ebay is losing ground. It could just be the case that merchants are finding it better to not split their sales between the two. Some could be exclusively on Ebay and others exclusively on Amazon. We don't really get enough information here to say anything about Ebay.
The article says “in sales.” You’re right, it’s not as much as it sounds.
Well O.K. 19% is more than 10%, but it also means that the reality is that 81% of third party merchants had sales of something less than $1 million.
Amazon is cancelling conservative Amazon Associates sites
http://www.breitbart.com/tech/2018/05/24/amazon-demonetizes-jihad-watch/
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