Selling on Amazon:
Tips & Insights for 2023
How can sellers stay ahead in a rapidly-evolving marketplace?
If you’re considering selling on Amazon, you might be curious about the types of people who have already found success on the platform. From small business owners to seasoned e-commerce veterans, the Amazon seller community is incredibly diverse.
In 2019, more than 30,000 Canada-based third-party sellers, many of which were small and medium-sized businesses, grossed more than $1 billion on Amazon.ca alone. That represents a 40% year-over-year growth, and these businesses went on to sell more than $2 billion worth of products on Amazon stores around the world.
It’s not just Canadian customers who are buying from these sellers, either. A whopping 45% of SMB sellers use Amazon to sell their products to customers outside of Canada. In fact, third-party seller products account for more than half of all units sold in Amazon stores.
Canadian SMBs sold more than 60 million products in Amazon stores in 2019, up from 35 million the previous year. On average, Canadian SMBs sold more than 110 products a minute on Amazon, and had an average of $110,000 in sales. That’s a significant increase from the previous year, when the average was around $65,000.
If you’re hoping to join the ranks of successful Canadian Amazon sellers, there’s even more good news. The number of Canadian SMBs that surpassed $1 million in sales grew by more than 80% year-over-year. In other words, it’s not just the big players who are finding success on Amazon – small and medium-sized businesses are thriving as well. If you’re unsure which platform is best for your business, take a look our dedicated blog post on this topic.
If you’re considering selling on Amazon in the United States, you may be curious about the platform’s reach and profitability for small and medium-sized businesses. Here are some impressive stats that may help you make your decision.
First of all, Amazon has more than 300 million customers worldwide and receives over 2.7 billion site visits each month. In fact, 66% of consumers search on Amazon first when they’re looking to make a purchase online. This means that selling on Amazon can give your business access to a massive and highly engaged audience.
It’s not just big corporations that are finding success on Amazon, either. In fact, 89% of SMBs selling on Amazon are profitable. And with nearly 2 million third-party sellers being SMBs, it’s clear that Amazon is a platform that supports and empowers small businesses.
Third-party sales on Amazon also make up a significant portion of the platform’s overall sales. In fact, 50% of Amazon sales come from third-party sellers. This means that if you’re able to build a successful third-party selling business on Amazon, you have the potential to tap into a huge revenue stream.
And speaking of revenue, third-party sellers on Amazon saw significant growth in 2022. In Q4 of that year, the revenue of third-party sellers grew by 20% year-over-year. This shows that there is plenty of room for growth and profitability for SMBs selling on Amazon.
Finally, customers in the US buy a staggering 7,400 products per minute from US sellers on Amazon. This represents a huge opportunity for small and medium-sized businesses to get their products in front of customers and make sales on a platform that is trusted and highly used by consumers.
Challenges To Consider
Selling on Amazon can be challenging. Here are ten of the most common challenges faced by sellers on the platform:
- Product research/development
- Getting customer reviews
- Managing PPC advertising
- Increasing market share
- Managing finances
- Optimizing product listings
- Finding a supplier
- Branding the business/products
- Managing inventory
- Protection from hijackers and counterfeiters
Sellers must find or develop products that sell well on Amazon and navigate complex product listing rules to get customer reviews. They must also manage PPC campaigns, optimize product listings, and brand their business/products while tracking expenses, managing inventory, and finding reliable suppliers. Additionally, they must protect their business from black hat tactics, such as hijackers and counterfeiters.
As Amazon continues to dominate the e-commerce landscape in 2023, it’s more important than ever for small and medium-sized businesses to establish a presence on the platform. Get in touch with us today to learn more about our E-Commerce and Amazon consulting services!