Why Amazon is the biggest player on the online retail market
The growth of the Amazon retail market
The Amazon retail market is the largest in the world generating $177.9 billion in revenue in 2017 and net income growth of 27.8%. In 2016, for example, the eCommerce company’s net revenue was $135.99 billion, up from $107.01 billion in 2015.
Amazon’s continuous growth makes it the go-to channel for both online buyers and sellers, with around 50% of all sales coming from third-party sellers.
A third party seller uses Amazon as a marketplace to sell directly to consumers, with these items later showing up with the labels “Fulfilled by Amazon” or “Ships from and sold by (retailer)”. Third-party sellers acquire their inventory by purchasing it directly from the manufacturer or buying it from other retailers. In other words, online businesses such as yours, which thrive on the business model of Amazon. More than 300.000 third-party sellers started selling on Amazon in 2017 and more than 140.000 third-party sellers surpassed $100.000 in annual sales that year and these are official Amazon numbers.
Clearly, the company is somewhat of an oasis in the desert for online entrepreneurs from all over the world who manage to generate significant profits by selling almost anything online, from car parts to perfumes, innovative gadgets or pet accessories.
Curious about which categories get the most sales?
Here are the best product categories to sell on Amazon, as per the annual company statistics, based on the percentages of top sellers per each product category:
- 18% of the top sellers on Amazon.com mainly sell in the Electronics category
- 15% of the top sellers are selling Clothing, Shoes & Jewelry
- 13% of the top sellers are selling in the Home & Kitchen category
- and 11%of the top sellers have Health & Household as their main category
Using Amazon you can currently sell on 14 marketplaces: USA, UK, Germany, France, Canada, Japan, India, Italy, Spain, Mexico, Brazil, Australia, Singapore, and the UAE. Almost 35% of Amazon retail sellers are from China. Currently, there are over 5 million marketplace sellers across all the Amazon platforms who sell in more than 20 product categories, open to all sellers, and at least 10 more categories available only to Professional Sellers.
This versatility helped Amazon become the eCommerce giant that it is today
Just think that right now, 1.761.784 sellers have products listed on the platform and the number of accounts created just on Amazon.com in 2019 is huge, 400.703, not to mention the rest of 628.000 on the other domains, such as .co.uk, .de etc.
In case you’re convinced about becoming an Amazon retail seller, we will help you with your business by managing all your activity in one place. That includes managing your products, uploading them on multiple sales channels when ready, bulk changing your postage options, prices, stocks, and many others.
Ad-Lister also has a mobile app that allows you to quickly add products by scanning the product bar codes – using the phone’s camera – the application will automatically fill out your product details based on the EAN number, using eBay’s product catalog.
Save huge amounts of time and money by working smart. Regardless if you decide to sell professionally or not on Amazon, Ad-Lister will be your perfect business companion. Our multiple pricing options were made to suit businesses of all sizes. The license tiers are based on the number of products in your inventory. Contact us by phone (+44(0)121 285 1052) or mail (firstname.lastname@example.org) to start your 7 day free trial right now!