Takeaways from Amazon’s 2019 SMB Impact Report
With 2019 at a close, it’s a good time to look back into the impact Amazon had on SMBs. Below is a summary of Amazon’s 2019 Impact on SMB Report.
SMBs continue to choose Amazon to sell their goods over other marketplaces, increasing Amazon’s market share and providing consumers with more choices. Year over year, more and more SMBs choose to sell on Amazon:
- 2016: 600,000 SMBs
- 2017: 900,000 SMBs
- 2018: 1,600,000 SMBs
In 2018, SMBs accounted for over $160 billion in sales, accounting for more than half of Amazon’s overall sales. For 2018, these SMBs had significant sales:
- More than 200,000 SMBs had sales of over $100,000
- More than 50,000 SMBs had sales of over $500,000
- More than 25,000 SMBs had sales of over $1,000,000
More than one billion dollars was loaned to SMBs to help support their Amazon stores.
But what does all of this mean for sellers? Amazon’s report includes these benefits:
- US-based sellers had on average $90,000 in sales
- US-based sellers more than doubled their export sales using FBA
This large growth in both Amazon’s distribution centers, fast delivery, and SMBs choosing Amazon over other platforms means that SMBs now sell on average 4,000 items per minute!
The most popular categories for SMBs are:
- Health & Personal Care
The top ten states with the fastest-growing SMBs are:
- North Dakota
Amazon has also grown in other ways. Amazon delivery vans have likely become more and more common on the streets. And people keep in touch with Amazon-related news may recall Amazon’s Delivery Service Partner program, which advertised $100,000 earnings when it first launched.
Other areas of growth include Amazon Web Services (AWS), Kindle Direct Publishing, and Alexa development.
Amazon is still growing, and it seems like a new distribution center is being built every month. What this expansion shows is Amazon’s plan to reduce delivery times and continue to grow its share of the online market sales.