- Hollis Johnson/Business Insider
Amazon accounts for half of all e-commerce conducted in the US, and third-party sellers sell over half the stuff on the platform.
The company announced that more than 25,000 US-based sellers made over $500,000 in sales in 2019, and half of those merchants topped $1 million.
In addition, Amazon invested $15 billion on third-party initiatives during the year, including a suite of over 225 tools and services for SMBs, a and trio of Small Business awards.
From brick-and-mortar to e-commerce businesses, the right answer to the Amazon question will vary.
But whether your company is all in, all out, or somewhere in between, our takeaway is simple: Having no Amazon strategy is not a wise move.
To help you navigate the opportunities and risks of selling on the platform, we rounded up reports, reviewed the data, spoken with experts, and boiled it down into this handy guide.
Our sources include:
- Mike Farrell, senior director of market and customer intelligence for Sidecar, a multichannel e-commerce service.
- Melissa Horvath, owner and designer for Pittsburgh-based Sweet Water Decor, whose sales increased more than 3 times from using the platform.
- James Thomson, formerly business head of Amazon Services and now partner at Buy Box Experts, a consulting firm that specializes in marketplace management for Amazon sellers.
- Melanie Travis, co-founder and CEO of upmarket swimwear brand Andie, who has elected to sell directly to customers through her company’s own platform.
- Chris McCabe, a former investigator at Amazon and the founder of a consultancy that helps Amazon sellers whose accounts have been suspended.
- Nick Denissen, Amazon’s first-ever vice president of small business, and former vice president of marketplace business.
Our exclusive BI Prime coverage explains what entrepreneurs need to know about working with Amazon.