Are you one of Amazon’s 70,000 $100k sellers?
Looking at Amazon, it’s not hard to be impressed by its scale. But how big is it? How many sellers are succeeding there? Is there still room for growth and, maybe, room for you, if you haven’t started selling?
Amazon founder and CEO Jeff Bezos revealed some interesting stats about third party sellers on Amazon around the world in his recent letter to shareholders.
Bezos says in the letter that 50% of items sold on Amazon are not sold by them: “We took two big swings and missed – with Auctions and zShops – before we launched Marketplace over 15 years ago. We learned from our failures and stayed stubborn on the vision, and today close to 50% of units sold on Amazon are sold by third-party sellers.”
He also said: “Marketplace is great for customers because it adds unique selection, and it’s great for sellers – there are over 70,000 entrepreneurs with sales of more than $100,000 a year selling on Amazon, and they’ve created over 600,000 new jobs. With FBA, that flywheel spins faster because sellers’ inventory becomes Prime-eligible – Prime becomes more valuable for members, and sellers sell more.”
But what about future capacity and opportunity for sellers? There’s still plenty of space and massive capacity for growth but as it gets bigger it will get harder on margins. But it’s impossible to estimate when saturation will come.
How do you feel about selling on Amazon right now? They’re hard task masters but buyer enthusiasm seems strong. Is Amazon going greta guns for you?