Every year, countless sellers open stores on Amazon North America. Some of them are newly-started studios, and some are manufacturers and suppliers. So what are the advantages of opening a store on Amazon North America?
1. Nine out of ten American consumers check prices on Amazon
Amazon has almost half of the US e-commerce market share, making it the first place consumers refer to and check when buying things. Even if they find a product on a non-Amazon website, 90% of consumers will go to Amazon to compare products and prices.
Why? Because Amazon offers competitive prices, the fastest logistics, and trustworthy after-sales service. If the buyer is an Amazon Prime member and Amazon happens to sell the same product, then after comparing prices and products, the possibility of the final purchase taking place on the Amazon platform is greatly increased.
2. Amazon sells more than 1.1 million home improvement products
There was a time when the home improvement industry was considered to be isolated from the "Amazon effect." Home furnishing products require some professional advice to provide suitable products according to needs. Therefore, buyers are mostly professional home improvement suppliers.
But a recent report pointed out that more than 80% of the home improvement market share is concentrated on Amazon. And this growth trend has not stopped. The growth of home improvement sales on Amazon means that sales of many traditional industries are beginning to flow to e-commerce!
3. More than 95 million people are Prime members in the US
As of the end of 2018, Amazon has more than 95 million members in the United States, a number that was 85 million in 2017. In addition to shopping on Amazon, these members also have to pay Amazon membership fees to enjoy exclusive discounts and free fast logistics delivery services. By selling on Amazon, it also means that sellers have access to these members.
4. Prime members spend an average of $1,400 per year
In 2018, Prime members spent an average of $1,400 on shopping on Amazon, while non-Prime members only spent $600. This means that Prime members have more than twice the spending power of non-members.
From a psychological perspective, paying a $100 membership fee each year makes many members think they need to buy more stuff to justify the cost of the membership fee. In particular, the more they buy, the more they gain from it, which relatively reduces the guilt they feel after making large purchases. Regardless, this means it becomes more important for sellers to gain exposure to selling to these Prime members.
5. FBA helps sellers increase sales by 30%~50%
Using Amazon FBA can increase the conversion rate of SKUs and increase sales, which is related to Amazon's Prime membership system. Generally speaking, buyers don’t like to pay for shipping after purchase. For all Prime-eligible products on Amazon, Prime members have free and fast delivery service. This also makes them more inclined to buy these Prime-eligible items.
6. Amazon shipped more than 5 billion items in the past year
For most sellers, the main role of FBA is to handle logistics and logistics-related after-sales services, so no one can deny that Amazon is an expert in logistics. Amazon has a large number of FBA warehouses, dense logistics partners and delivery personnel across the United States.
7. More than 50% of sales come from third-party sellers
Third-party sellers continue to enter Amazon's US site. This growth trend has continued for many years and there is no sign of slowing down. In fact, over the past five years, third-party sellers’ sales share has grown from 40% in 2013 to 53% in 2018.
This is the end of the information about opening a store on Amazon North America. If you want to get more information about opening a store on Amazon North America, please pay attention and we will continue to answer your questions~
