Takeaways from Amazon’s 2020 SMB Report
Interested in Amazon’s 2020 small and medium-sized business (SMB) report but only want the pertinent facts? Check out the highlights from Amazon’s SMB report here!
Third-party sellers account for more than half of Amazon’s unit sales. The following data is for the period from June 1, 2019 to May 31, 2020.
- 3P sellers sold more than 3.4 billion products
- An increase from 2.7 billion products last year
- 3P sales amount to 6,500+ products per minute
- This number is up from 4,000 products per minute from 2018
- American 3P sellers averaged $160,000 in sales
- Up from $100,000 year over year
- 20% more American 3P sellers passed $1 million in sales from the last report
- Amazon works with more than 2 million partners, including sellers, developers, authors, and delivery partners
- Up from 1.9 million from the 2019 SMB report
- Amazon Business customers spent over $7 billion
- SMB exports up to $3.1 billion
- An increase from $2.4 billion
- About 3,700 SMBs passed $1 million in sales
- More than 450,000 sellers worldwide use FBA, with sales growing by 34%
Other interesting data in the report are the states with the most Amazon sellers. 47 states have more than 1,000 sellers. 26 states have more than 5,000 sellers. Below are the five states with the most Amazon sellers:
- California, with 100,000+ sellers
- Florida, with 50,000+ sellers
- New York, with about 50,000 sellers
- New Jersey, with 20,000+ sellers
- Utah, with 70,000+ sellers
Additionally, the 2020 SMB report lists the states with the fastest-growing sellers year over year:
- Iowa, with 57% growth
- Washington, with 57% growth
- Alabama, with 53% growth
- Virginia, with 50% growth
- Louisiana, with 49% growth
Other interesting data of note is the hiring of 82,000 last-mile delivery drivers hired through the more than 1,000 Amazon Delivery Service Partners.
What does this data mean? Amazon’s marketplace sales are growing year over year. Combined with a few other factors like Amazon’s investment in and expansion of fulfillment centers, delivery drivers, and other logistical services, Amazon continues to dominate and expand its position in ecommerce.
Other factors, like the worldwide pandemic, have caused major retailers like JC Penney and GNC to declare bankruptcy and reorganize. Whether these retailers will rebound still remains to be seen.
All of these factors mean that Amazon will continue to dominate the online marketplace, and the drastic increase in unit sales per minute is evidence that third-party sellers on Amazon continue to increase their revenues even as traditional brick-and-mortar retailers lose sales as a result of reduced foot traffic and pandemic restrictions.
Ultimately, Amazon’s 2020 SMB report is good news for third-party sellers who are established. With the ongoing pandemic, more and more people are shopping online, and it’s clear that they’re choosing Amazon.