AF292 - Why Selling on Amazon is Still Best: 10 Amazon Stats that will Shock You
It's no secret that Amazon is the largest global e-commerce platform but the numbers might shock you. Lean in to see why Amazon is still the best place for e-commerce.
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It is all in the numbers. It is all in the stats. With the amazing use of technology, more and more stats are facts and provable by multiple locations, multiple websites, and multiple fact-checkers that are looking at all this stuff.
A lot of publicly traded companies’ information is public. You can look up how many employees Amazon has, how many times they have been sued, and how much their revenue is. You can also look up all kinds of stats of big, huge corporations like Google, eBay, Walmart, and Twitter. There are companies that have an immense amount of data and sell these statistics to people.
I use it for all kinds of research purposes. I am going to premise this on these facts from Statista. If you want you can even ask Siri and Google and they will give you some statistics.
When I am not playing corn hole and hanging out with my family, I like researching and learning stuff like random facts. You need to care about some of this stuff because it is going to help you, especially if you are experiencing some discouragement.
If your things are not selling the way that you want them to, or you are just feeling some frustration, sometimes these facts can really help set us back on track to realize that we are still playing on the world's largest e-commerce platform. Yes, it is still that. Amazon is going to be rivaled by Walmart in their prime, in their one-day deliveries and all that kind of stuff.
Walmart will be their number-one competitor in the next five years. Back in 2019, Amazon had 45% of the US e-commerce market share, but in 2022 it fell to 37.8%. So there are other e-commerce platforms that are up and rising and coming against Amazon, but they still have nearly 40% of the e-commerce market share. So if you have a product, it should be on Amazon.
Also the net. $514 billion in revenue for Amazon in 2022. That means all of those customers are exposed to all of those products. Your products. This is one of the reasons why it is still the best place, but there is more, there is more to the story than this.
Over 95 million Americans claim a prime membership. That is two-thirds of Amazon's total audience. Has their app, has Amazon Prime two-day free shipping, and Prime video. Prime access. If you are merchant fulfilling, you are missing out on Prime, although you are still on Amazon. You are missing out on so many customers who refuse to buy anything that is not prime.
Millennials are the biggest audience when it comes to Amazon. Millennials are the number one users on Amazon right now by two to one. Are you selling products that are appealing to millennials? Have you done any customer research in this area on people between the ages of 18 and 29? And what they are buying and what they are looking for? If your stuff is not selling, consider your audience. Do you know any millennials? If not, go to some of the sites, look at what they are buying, and look at what they are interested in. Look at their potential budgets because their budgets are going to be smaller.
Never run out of things that you use every single day. Just stock up a little, just have some, and when you run low, let us just subscribe and save on Amazon. It is awesome. I know exactly how much I need and once a month it is just delivered.
Pay attention to who is shopping and where they are shopping.
Shopping needs to be convenient and easy.
Almost everyone price checks on Amazon. This is another statistic that I thought was really, really interesting. Nine out of 10 shoppers check Amazon for the prices. When customers do that, it is because they are looking for all-around best deals and then customer service. People are using Amazon to price check both for high and low.
Some people do not price check at all. They only buy from Amazon. They just do not want to deal with any other store. They do not want to deal with using Apple Pay, even though Apple Pay and Google Pay make things so much easier to shop in different stores online. It is that customer service. It is knowing in the back of our minds that if something does not fit or we do not like it or arrives damaged, Amazon will take care of that as well. It is a buyer experience that everyone loves. I know some of us sellers do not love it because Amazon will literally give people refunds for absolutely no reason, but they are working on solutions for that.
Amazon Prime Day. I always thought that Cyber Monday and Black Friday were the absolute most profitable and biggest days for Amazon. But actually, they have been pushing Prime Day a lot more. The number one reason why Amazon Prime Day is the most profitable day for Amazon is that they sell their memberships at a discount on Prime Day. They offer a prime discount on your prime membership. So keep that in mind. If you need to renew or you are giving a gift membership or you are buying one for your business as well as your personal, they convert 18.6% of people to prime memberships on Prime Day.
Most people are not Amazon sellers, but they are buyers. They really have no idea that they are buying from small businesses. Tell them proudly what you do and that you are a small business selling through Amazon's platform, accessing a global customer base.
Your product has the potential to reach a global audience every minute of every hour of every day that it is on its website.
80% of Amazon sellers use multiple platforms to sell. Did you know that Target and Walmart and Macy's now, and probably some other ones are going to start adding third-party fulfillment in selling just like Amazon? So do not put all of your eggs in one basket, but do not diversify too early either. You have to know what you are doing for you to be comfortable in one space to then jump ship.
Amazon is still the best place with the most traffic, with the most customers.
This is not in the wholesale bundle system. I should be teaching a class on actually how to conduct outside research. I have taught you a 12-step research process to go through the research, but then you have to know the customer. You can create a product that fills a need and meets a need or solves a problem. But you have to know who was not.
It is not what we want it to be. It is what it is. And we have to work within the boundaries and the parameters of it. It is not always glamorous. It is not even sunshine and rainbows. That is actually a rarity with Amazon, but it is still the fastest place to earn the most money with e-commerce. I have been in this game for over almost 20 years. This is my 20th anniversary this year in June. It will be my 20th year in e-commerce.
Things have changed more in the past three years due to a global pandemic and a shift in how we obtain products and how we buy them and how we distribute them. Things change really quickly, but what has not changed is that people still want to buy products.
Have you looked for something, a gift or a product or something that is like, oh, that is kind of sort of what I want, but not quite the right thing? This is how new products are invented. This is how new bundles are put together. Solving a problem does not necessarily mean that the problem has to be earth-shattering. It can just literally be a simple solution.
I hope these stats really trigger your mind to think. Yes, we have the privilege of selling here. Amazon is not just the happiest place in the world to work with. However, they have built something absolutely amazing and absolutely global that none of us would have access to otherwise. We are going to bring our products to the table, we are going to bring our solutions to the customers and get profit from that. So be encouraged.
QUOTE:
“I want you to be the most informed Amazon sellers out there. I want you to be informed as entrepreneurs. I want you to be inspired and motivated and aware of the numbers and the changing landscape that is out there.” - Kristin Ostrander
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