Small business is big business for Amazon
For as big as Amazon is as a marketplace operator, what got it there was small.
Namely, small businesses. More than 60% of the businesses that sell on Amazon are small and independent, Amazon says in a new report. Collectively, those businesses in 2022 sold more than 4.1 billion products — or an average of 7,800 products every minute — Amazon says.
Sales per small business store on Amazon averaged about $230,000 per store, according to Amazon’s new report, 2022 Small Business Empowerment.
“Selling in Amazon’s store has enabled independent sellers to employ an estimated 1.5 million people in the U.S.,” says Dharmesh Mehta, vice president of Amazon’s worldwide selling partner services. “And during the 2022 holiday season alone, Amazon customers purchased nearly half a billion products from small businesses in the U.S., leveraging Amazon’s significant investments in customer traffic, a trusted shopping experience and fulfillment and logistics capabilities that enable fast and convenient delivery.”
Amazon small business metrics
- In 2022, Amazon and its third-party lending partners lent $2.1 billion to independent sellers.
- The top small business categories include health and personal care, home, beauty, grocery, and apparel,
- The states with the most independent sellers are California, Florida, New York, Texas, and New Jersey.
- The fastest growing are Alaska, Washington, D.C., Mississippi, Maine, and Wyoming.
“While small businesses continue to thrive by selling in Amazon’s store, running a small business has never been straightforward,” Amazon says. “And this past year brought new challenges that businesses of all sizes had to navigate. The economy saw rising interest rates and inflation not seen in nearly 40 years. And many businesses continued to face supply chain issues because of the global pandemic and its aftereffects.”
Amazon.com Inc. is No. 1 in the Top 1000. The database is Digital Commerce 360’s ranking of North American web merchants by sales. It is No. 3 in the Online Marketplaces database, which ranks the 100 largest global marketplaces.
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