Almost 40% of All Amazon Retail Sales are Generated by 3rd Party Online Merchants – Are You One of Them?
Laura Hills, VP of Marketing, Dydacomp
Twenty percent of all people will visit Amazon online this year. Amazon continues to be the most visited online retailer to-date. The Amazon Marketplace represents an opportunity for your business to reach over 173 million new customers and can enable you to achieve significant growth. One longtime electronics seller, Amazing Deals Online–who has been on Amazon for twelve years– reported a record holiday season in 2012 with an over 70 percent increase in sales from 2011. Now that’s a pretty impressive statistic.
Amazon’s strategy focuses on three core values:
- price, and
- convenience with the goal of offering the widest possible selection of items at the best price while providing the easiest repeat shopping experience.
Third party online merchants fit right into this strategy because they enable Amazon to offer wider product selections to a vast audience. In a note to investors just before Amazon reported its 2012 year-end results Stifel Nicolaus analyst Jordan Rohan said he believes the value of merchandise sold by Amazon versus third parties on Amazon (known as gross merchandise value, or GMV) has just about hit a 50-50 split. By 2015, Rohan says Amazon will hit $180 billion in GMV, and third-party sellers will be responsible for most of those dollars. Shouldn’t your company be tapping into this resource?
Amazon has tremendous power as a sales channel and the Amazon Marketplace enables businesses to sell products directly to end users on Amazon. Listing your products on Amazon Marketplace will get your products in front of a significant volume of traffic. So, if you want to sell more products, extend your geographic presence, build brand awareness and increase overall sales and revenue, Amazon Marketplace could be just what you need.
To help you get started, Dydacomp has created a special on-demand webinar that provides additional information on selling through Amazon Marketplace. It is a must watch if you are considering Amazon Marketplace or looking for a more efficient way to manage your existing Amazon Account. Click here to access this free on-demand webinar.