Amazon and the Rise of the Third-Party Seller
It’s unusual for someone like Jeff Bezos to celebrate losing sales. In 2018, Amazon’s third-party sellers surpassed Amazon’s sales, growing from 3 percent of the company’s income to 58 percent. But as for Bezos? He seemed positively elated at his platform’s success.
The success of Amazon’s third-party seller platform indicates that giant online marketplaces like Amazon are no longer only a roost for successful corporate giants.
Now, they offer similar success to small business owners.
Third-Party Sellers Outpace the Rest
Just how much has Amazon’s third-party marketplace grown in the past decade?
As of 2018, Amazon’s direct sales garnered roughly $117 billion in revenue. In comparison, small- and medium-sized businesses utilizing the platform generated $160 billion.
This means that small businesses are pushing more product, yes. However, they’re also attracting more consumer attention, and they’re using Amazon’s platform and accompanying toolkit to do so.
Building a Unified Amazon
Amazon’s toolkit, or management portal, is a huge bonus for any third-party seller. This portal makes it simple to start and manage a new business. It’s just one factor that strengthen’s the company’s status as one of the most influential third-party seller platforms online today.
In today’s internet age, Amazon’s online-shopping business model has boomed. In fact, it’s so successful that the company has been able to pump revenue back onto its platform and help others share the wealth. That size of the platform—not to mention the size of its audience—would be an impossibility for most small businesses. For fledgling companies, Amazon provides invaluable reach.
Amazon also ensures storefront homogeneity across its site. No matter what a company sells, the listings appear uniform and professional. This adds levels of authority to even one-product companies—along with a substantial viewing audience.
Amazon’s Unique Third-party Seller Experience
Even building a brand and incorporating SEO benefits has become easier thanks to the integration of Amazon’s Brand Registry program. As a third-party seller, your product postings need to maintain Amazon’s universal design. However, the Registry Program allows sellers to cultivate unique business identities on the platform to set themselves apart.
Beyond this, adding key platform elements such as mobile compatibility and scalability is easier than ever through Amazon’s extensive marketplace platform.
Small Businesses, Big Marketplace
So, what does this mean for you? It means there’s no better time to be a third-party seller.
With Jeff Bezos crowing about the financial success of third-party sellers, there’s only room for growth. Seize the opportunity to take advantage of Amazon’s warehousing, toolkit, and extensive consumer audience–without the worry of heavy financial risks.
The online marketplace is changing, and Amazon just might be on top. If you’ve been considering moving to a third-party platform, it’s a great time to act.
Image attribution: kromkrathog – stock.adobe.com