Industry Insights: Selling on Amazon

Amazon is a colossal marketplace, offering unparalleled opportunities for sellers across the globe. Its continuous evolution, driven by technological advancements and changing consumer behaviors, has made it a focal point for businesses looking to expand their online presence.

We dive deep into successfully selling on Amazon in 2024 in this report you can download for free.

Why you should sell on Amazon

1. Over half of online shoppers (51%) start their shopping journey on Amazon

This positions Amazon as a key platform for visibility in the online retail space. This immense traffic not only increases the chances of visibility for new brands but also establishes Amazon as an essential part of any successful eCommerce strategy. For businesses, being where the customers are is crucial, and Amazon is undeniably where a significant portion of customers begin their search.

2. An impressive 89% of Amazon sellers achieve profitability, with 63% doing so in their first year

The platform’s extensive user base and sophisticated logistics network contribute to this success. New businesses can leverage Amazon’s vast resources and customer trust to accelerate their journey toward profitability.

3. With a customer base of 310 million, Amazon offers a broad audience for businesses to tap into

Amazon’s extensive customer base, along with its global shipping reach to over 100 countries, offers sellers unparalleled access to a diverse and expansive market. This global reach is particularly beneficial for niche products, which can find a larger audience on Amazon than they might in their local market.

4. With over 12 million products and services, Amazon’s marketplace is incredibly diverse

Amazon’s marketplace caters to almost every conceivable niche. This diversity attracts a wide range of customers, increasing the chances of product discovery. Sellers can benefit from this by positioning their products among a vast selection, where there’s something for every kind of shopper.

5. Using Amazon’s FBA service can reduce shipping costs by 70% per unit compared to premium options from major US carriers

And by 30% compared to standard shipping. 

In addition to cost savings, Amazon’s proactive measures like Brand Registry and Transparency product-serialization codes offer robust protection against counterfeits, enhancing brand integrity and customer trust. These services not only streamline logistics but also bolster brand reputation, making Amazon an indispensable platform for sellers.

Amazon’s multi-faceted approach to eCommerce makes it a vital platform for any business looking to establish or expand its online presence. With its vast customer base, diverse product range, and efficient services, Amazon offers a comprehensive ecosystem for your eCommerce business to thrive.

Amazon trends and predictions 2024

Social commerce

In 2023, the Global Social Commerce market was valued at an impressive $2.4 trillion, and it has a significant growth trajectory ahead.

Amazon is tapping into this trend with initiatives like Amazon Inspire and the Amazon Influencer Program. These programs offer personalized content and leverage the power of social proof in purchasing decisions, with influencers endorsing products and earning commissions. Currently, 6% of Amazon’s third-party sellers use influencer marketing, often incorporating promotions to drive traffic and sales.

Amazon advertising

Amazon Advertising is emerging as a key driver of traffic to listings, with its importance anticipated to increase by 2024. Competing with Google, Amazon is becoming a dominant force in online advertising. A significant majority of Amazon customers, nearly 75%, use Amazon Advertising to discover new brands and products.

Live commerce

With 80% of consumers preferring live videos over reading blogs, Amazon Live offers sellers and brands a dynamic platform to engage with customers in real time. Through the Amazon Live Creator app, influencers and brands can stream directly to Amazon’s various placements, utilizing interactive features to boost customer engagement and brand recognition.

Sustainability

Sustainability is becoming a pivotal focus for consumers, and Amazon is responding by enhancing its eco-friendly initiatives. The company aims to operate on 100% renewable energy by 2025 and has introduced the Climate Pledge Friendly program to highlight products meeting stringent sustainability standards. This initiative not only aids consumers in making environmentally conscious choices but also underscores Amazon’s commitment to sustainable practices.

Learn more about Selling on Amazon by downloading the full report today.

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