Amazon growing stats is impressive – it counts over 5 million sellers and over 3,000 new sellers join Amazon every day – it’s getting really saturated. And you might wonder
Is it too late to get in? Is Amazon worth starting in 2020?
In the last reported year, the multinational eCommerce company’s net revenue was 280.5 billion U.S. dollars, up from 177.86 billion US dollars in 2017. Over almost 50% of all eCommerce sales happen on Amazon and 50% of all the sales that happen on Amazon are from third-party sellers (just like you and me!)
Today, Amazon has over 300 million products and 300 million active users – this made Amazon the most prominent online retail platform worldwide. Obviously, it’s not the limit which is a perfect reason to start selling on Amazon now and get your piece of that huge market pie. And if it’s still not enough for you here’re more:
Amazon has become the biggest eCommerce search engine
66% of consumers start their search for a new product on Amazon when looking to purchase just about anything online. Amazon has built great authority and having access to sell on its platform gives you a huge advantage as you can leverage that authority for your own store.
Amazon is the most trustful online store
89% of US consumers are more likely to buy a product from Amazon than other online stores. (Feedvisor, 2019).
Gaining customer trust is crucial for the success of any company or brand. The trust that Amazon has built with its customers is based on consistent and transparent product experiences. As Forbes has said, “Amazon has earned our trust by delivering the products we want, on time, intact, in the same branded brown boxes—consistently.”
As an online business, you should be thinking about developing customer relationships. Customer relationships will help you win more shoppers. In the age of online shopping, by focusing on truthful and clear product information online you can deliver a consistent experience to your customers.
Amazon provides the highest conversion rate
74% of consumers go to Amazon when they are ready to buy a product. This means these audiences are coming in hot at the bottom of the funnel and ready to buy.
The average conversion rate on Amazon is 9.47%. Of course, like all metrics, these averages are widely different based on the niche.
The average eCommerce conversion rate for websites other than Amazon is about 1.33%. This means an average conversion rate of 9.47% shows the real superpower of Amazon.
Amazon promotes your products
Simply put – if your product converts well then Amazon’s algorithm recognizes this and starts placing your product in ‘frequently bought together’ sections on other product pages, gives out ‘Amazon’s Choice’ badges, and gives your product placement in many other areas. This costs you nothing and can literally double or triple your sales overnight.
Conclusions
Clearly, with its extensive reach, selling on Amazon is an irresistible opportunity. The size of the audience is remarkable. Even better, the amount of traffic recorded by Amazon gives you access to a significant pool of established customers. These statistics affirm that Amazon is a comprehensive traffic resource. Notably, Amazon is a reliable resource that has evolved to become an integral component of customers’ broader shopping mindset. But that doesn’t mean selling on Amazon is straightforward.
As with most good things, there is a catch. Selling on Amazon is very competitive. It’s not as easy as it was even 2-3 years ago. Today China is seeing the power of Amazon as a platform so Chinese companies creating their own private label brands and selling it on Amazon cutting out the middleman. Besides, they’re discounting their products so much cheaper than you can’t possibly compete with them. It creates an environment where a successful seller doesn’t win customers with the price but with a unique proposition. Simply saying – you have to stand out.
That said, you must strategize proactively and use the best and most current Amazon market model. Besides, you need to leverage the available data and work with innovative tools to differentiate yourself in the cutthroat online ecommerce space. Obviously Amazon provides an established customer base, but for increased acquisition, you should advertise strategically, implementing new technologies, and price more dynamically. Definitely more work is required and obviously, that’s why three-quarters of Amazon seller firms had up to 5 employees, in 2018. (Statista, 2019) – relying on professional help is key.
There’s only one reason why selling on Amazon is not worth trying in 2020 – if you’re going to use the same old school methods. Outdated approaches for sure won’t be enough to sustain a business on Amazon.
Sources:
- Statista Amazon Data: https://www.statista.com/topics/846/amazon/
- Marketplace Pulse Report: https://www.marketplacepulse.com/amazon/number-of-sellers
- Feedvisor Report: https://fv.feedvisor.com/rs/656-BMZ-780/images/Feedvisor-Consumer-Survey-2019.pdf?mkt_tok=eyJpIjoiWVdKaVlUazVNRGMyT1daaCIsInQiOiJMQU9TZjVNUmJjTU93Wk5pQjdFTHpoV0REZFdsTk0wSTIrUitKUTJaVHhsa1J2eSszMzJOTkRDdVpIXC9EVVJpU04ydFc0XC93dldBdDhQWkdGY25OR1dwU1wvS3J0c29uUnBUNXJWOW5WOWs1XC94Rm9XaUQ1bFlSK1RMT3Q5UnZIXC9ZIn0%3D
- eMarketer Report: https://www.emarketer.com/search1/?query=amazon
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