As we all know, Amazon’s third-party market played an important role in promoting the overall profits of e-commerce giants in 2017. It is understood that more than half of all products sold on the site come from third-party sellers. According to a new study, the majority of sellers did indeed get more returns.
19% of sellers have annual sales of more than $1 million
Feedvisor, a company that provides price intelligence to online marketplace sellers, surveyed more than 1,200 businesses in an annual survey called “Amazon Market State.” The results show that 19% of sellers have annual sales of more than 1 million US dollars, which is higher than 10% in 2017.
In addition, the share of sellers exceeding 10 million US dollars rose from 1% to 3%, while the proportion of sellers in the mid-market, that is, less than 250,000 US dollars per year, reduced from 72% to 60%.
Most worried about Amazon competing with itself
Although many people have discovered a bucket of gold from Amazon’s huge user base, the surveyed sellers still bluntly expressed their fear and caution about “Amazon’s competition with themselves”. This proportion is 38%, which is “most worrying for sellers”. Things are at the top of the list. Secondly, sellers are struggling with the platform’s high fees (33%) and negative reviews (32%).
Although many people have obtained impressive results from mining Amazon’s own business, its businesspeople surveyed that they are reviewing Amazon’s own stocks. In 38% of competitions, this game ranked first, followed by high fees (33%) and negative customer reviews (32%).
The latter two concerns are obvious: Amazon increased Amazon’s FBA fees this spring, as well as clothing and accessories commissions, which directly increase the cost of third-party sellers.
At the same time, receiving bad reviews may lead to a decline in sales, which is why some sellers in the market have been “forced” to switch to buying fake reviews, even though Amazon has been fighting this practice this spring.
Optimistically, at present, the seller’s sales growth trend will continue in Amazon’s first-quarter earnings. The company stated that third-party seller service revenue (including commissions, freight and order fulfillment fees) increased by 44%. US$9.3 billion accounted for 18% of total sales.