In 2018, Amazon's share of the US e-commerce market reached 49%. At the same time, the second largest eBay is 6.6%, the third largest Apple is 3.9%, the fourth largest Walmart is 3.7%, and the rest are less than 2%. There is no doubt that Amazon is the leader in retail e-commerce, and its growth rate shows no sign of slowing down.
Even though it is difficult to do business on Amazon now, as long as sellers can get some exposure, they can create a considerable return on investment. Follow the editor of 1981 Amazon agent operation to understand the key advantages of choosing Amazon US site to open a store!
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.
Another reason is that Amazon has long established a sense of trust in the minds of consumers. When buyers see that the product is delivered by Amazon, they are more likely to choose to buy products delivered by Amazon rather than those delivered by the sellers themselves. Leveraging Amazon's credibility is almost irreplaceable for sellers.
6. Amazon delivered 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.
Amazon has proven that it can provide consumers with fast and reliable delivery services. It is naturally impossible for an ordinary seller to provide better delivery service than Amazon.
This way, sellers save a lot of time and investment in establishing their own logistics system. It is not a bad thing to deliver goods to buyers quickly. The faster buyers receive the product, the more trust they will have in Amazon Logistics, which will also be reflected in their favorable impression of the seller's products. This is a positive cycle.
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 of course good news for the Amazon platform. In 2018 alone, third-party sellers brought Amazon $9.3 billion in profits, with profit sources including FBA, sales commissions, and other seller service fees.
No matter what industry you belong to, Amazon is a platform full of business opportunities for sellers. The editor has sorted out the benefits of opening a store on Amazon US:
1. Amazon is the first place consumers consider when comparing products;
2. His product categories continue to grow;
3. The traffic from traditional industries that Amazon platform obtains continues to grow every year;
4. Amazon Prime members have higher spending power than non-members;
5. Amazon provides sellers with FBA logistics services.
Amazon US is no longer a good place for those who just want to spend a little time and seek passive income. Many large companies on Amazon produce their branded products to provide solutions to specific problems. It makes it difficult for other sellers to compete, and even conversions and sales require CPC in-site advertising. High-quality products alone are not enough to generate enough profits.
Amazon US requires a complete strategy, marketing creativity, and actual investment of your time, energy, and resources. The era of making easy money on Amazon is gone, but for capable sellers who are willing to operate seriously, Amazon can help you generate a lot of sales and make your business grow rapidly.
