Amazon

19 Percent Of Amazon Merchants Made More Than $1M In Sales

Amazon

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.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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