Mention e-commerce, and the first thing most people will probably think of is Amazon. There may be many e-commerce platforms in the world, but Amazon is easily one of the most recognizable brands. It is the only e-commerce platform that both brands and third-party sellers cannot afford to ignore.
If you’re looking to start an FBA business on Amazon, it helps to arm yourself with relevant statistics to help position you for success. As the saying goes, information is power. The following stats will show you the powerful facts you need to know as a potential or existing FBA seller. So let’s dive into the list of stats for Amazon FBA in 2021!
Amazon FBA Stats in 2021
1. Amazon has 9.5 million sellers (with more than 2.5 million of them active) in 2021
Globally, Amazon boasts more than 9.5 million sellers (including inactive sellers) using the platform. Approximately 2.5 million sellers have at least one product listed for sale on Amazon. The figure continues to climb as nearly 2,000 new sellers join Amazon every day.
2. 500,000 sellers are based in the US
Of the nearly 2 million third-party sellers scattered around the globe, more than 500 000 sellers are based in the United States.
3. Half of American third-party sellers take advantage of FBA
Fulfilment by Amazon (FBA) is a popular solution among third-party sellers in the US and Amazon says that half of the population take advantage of the service. Putting a figure to the stat, this means about 250,000 sellers are using FBA. Keep in mind that this figure does not include sellers in other countries using FBA.
4. 66% of the top sellers use FBA
FBA stands for Fulfilment by Amazon, a service offered by the company to sellers. Hence, the former is responsible for the storage, packaging and shipping of the products of those that enrol in the program. According to eDesk, 66% of the top 10,000 sellers on Amazon use FBA for their businesses.
5. Third-party sellers using FBA record 30-50% increase in sales
According to Seller App, third-party sellers that use FBA solutions for their business record a 30% to 50% increase in sales. This could be attributed to the many advantages the business offers, including greater visibility, more time to concentrate on sales, greater control of inventory and more. Plus, businesses who opt-in for FBA automatically receive the Prime badge on their listings, giving them more exposure to Prime members.
6. Amazon now has 200 million Prime members worldwide
In April 2021, Jeff Bezos announced in his annual letter to shareholders that Amazon had surpassed the 200 million Amazon Prime subscribers milestone. This is no mean feat as it means the company doubled its subscriber base in under 3 years (since early 2018). The huge membership base offers a lot of advantages to FBA sellers in that it translates to access to a lucrative audience since Prime are predicted to spend 4x as much as non-member customers.
7. Almost 1 in every 3 Americans have a Prime membership
Amazon revealed that of its 200 million Prime subscribers worldwide, Americans make up close to 95 million of the total audience which equates to nearly 1 in 3 Americans.
8. 74% of shoppers begin their online search on Amazon
We’ve always known that Amazon is a force in the world of e-commerce, but these stats show the retail giant has become much more than an e-commerce marketplace. Nearly 75% of online shoppers said that they go to Amazon first when searching for a product on the internet. This represents a whopping 25% increase from 2019, when 49% of internet users named Amazon their number one product search site.
9. Amazon receives over 200 million monthly visitors
Amazon’s customer statistics show that more than 200 million unique shoppers visit the marketplace each month, making it the most heavily trafficked site in the U.S. That’s more than the entire population of Russia and Canada combined, as well as about 60% of the population of America. Again, this stat proves the dominant power of the e-commerce platform in the U.S.
10. Amazon records an average of 3.767 billion monthly visits
In 2020, Amazon attracted an average of 3.676 billion desktop and mobile monthly visits. What’s more staggering is that more than 60% of the traffic is direct, which means people go directly to the website to find something specific. During the same period, eBay had the second-highest number of visits, 1.012 billion, while Rakuten took the distant third place with 799.45 million visits.
11. Amazon marketplace grew 60% in Q1 of 2021
Data released by Marketplace Pulse indicates that Amazon’s retail marketplace grew 60% in the first quarter of 2021. This is the fastest-growing trajectory in at least five years since the company began reporting third-party seller services revenue, which grew more than 50% during each of the past four quarters. With this stat, it is obvious that the sales lift didn’t last only during the lockdown last year as more people are buying things online than ever before.
12. Small and Medium-sized Businesses sell 4,000 products per minute
It’s no secret that people are shopping a lot, but putting in perspective the huge opportunity Amazon offers, the data indicates that SMBs sell 4,000 products per minute in the U.S. alone. That translates to about 67 orders per second and 240,000 products per hour. Further reports also show that Amazon has helped small SMBs create an estimated 1.6 million jobs across the globe.
13. Amazon ships about 6.6 million packages every single day
Amazon ships over 1.6 million packages a day. That works out to more than 66 thousand orders per hour and 18.5 orders per second. These packages include (but are not restricted to) items that Amazon sells and products delivered by Amazon via its FBA program
14. Amazon’s enjoys a nearly 50% share of the US e-commerce market
With an inventory of about 12 million items across all its categories and services, Amazon’s share of America’s e-commerce market is approaching 45%. No one else comes close to Amazon, as eBay takes second place at 6.6%, Apple at 3.9%, and Walmart at 3.7%. Expectedly, the numbers might fluctuate from time to time, but Amazon undoubtedly accounts for the lion’s share of US e-commerce spending.
15. Amazon has more than one-third of North America’s online retail market
According to figures released about Amazon’s market share worldwide statistics, the e-commerce giant currently has 39.7% of online retail sales in America, while its market share in Europe stands at 9.8%.
16. Amazon makes $4,722 each second in 2021
Selling on Amazon is a big deal. To fully appreciate the fact of this statement, consider that Amazon records $4,722 per second, which amounts to $283,000 per minute and $17 million per hour. The income generated from sales comes from thousands of third-party sellers using the variety of services offered by the company, including FBA.
17. 54% of Amazon third-party sellers have jobs outside of their Amazon FBA business
According to Jungle Scout, more than half of Amazon sellers (54%) have other work outside their Amazon businesses, while 37% of respondents have full-time jobs (40+ hours per week.) Additionally, more than a third of the population earn more income from Amazon sales. This stat further sheds light on the vast potentials available to sellers, especially those using Amazon FBA.
18. Amazon generated $386 billion in revenue in 2020
In 2020, Amazon raked in $386 billion in revenue, representing a 38% increase from the $280.5 billion it generated in 2019. Net profit was also up 84% for the year compared to the previous year. In the same period, Amazon touched the $1 trillion market cap threshold in January 2020 after 23 years as a public company.
19. In 2020, Amazon made approximately $80.5 billion in third-party seller services
Amazon’s relationship with third-party sellers is mutually beneficial to both parties. Last year, the e-commerce giant recorded a nearly 50% increase in third-party sales over the previous year. As a result, Amazon generated approximately $80.5 billion in third-party seller services, and third-party seller products now account for more than half of all units sold.
20. Over 140,000 third party sellers exceeded $100,000 in their annual sales
Reports indicate that third-party sellers are thriving on Amazon as more than 140,000 of them surpassed $100,000 in sales this year. The rising performance of sellers has seen many suspend selling on other sites to leverage the huge traffic and maximize their performance on Amazon.
21. Millennials in the U.S. are the biggest consumers of Amazon’s products
When compared to other generations, Millennials represent the largest group of consumers of Amazon’s products. Apple held the top spot on Moosylvania’s list of top 100 hundred for six years, but the widespread preference for Amazon has landed the tech giant in the second spot, with Nike and Walmart taking the third and fourth, respectively.
22. Nearly 2000 new sellers join Amazon every day
Amazon is attracting new third-party sellers to its site to the tune of thousands of sellers per day. The online retail giant is adding nearly 2,000 new sellers on a daily basis in 2021. As of the 3rd of December, that totalled out to more than 670,000 sellers. The US, UK and India make up more than half of all new sellers.
23. Amazon’s worldwide distribution of network centres increased by 50%
For its FBA service, Amazon has hundreds of network centres scattered around the globe. In 2020, the company aggressively grew its capacity of FBA by increasing square footage across its worldwide network of distribution centres by 50% worldwide. It also increased its staff strength by hiring 450,000 new employees to handle the expanded capacity.
24. 23% of online shoppers go first on Amazon for inspiration when they don’t have a specific product in mind for purchase
Nearly one-fourth of online buyers visit Amazon to browse through different categories with the hope that they will find something they may purchase. In other words, a significant percentage of shoppers check Amazon when they want to purchase something but don’t have anything specific in mind. This stat might not be interesting to everyone, but it points to the need for FBA sellers to intensify their marketing efforts.
25. Nearly Amazon third party sellers use FBA
Approximately 94% of sellers worldwide use Amazon FBA. The service allows sellers to list their products on Amazon while they hand over the storage, packaging and shipping to Amazon. With nearly all Amazon third-party sellers relying on FBA to serve their customers, there is very little doubt that the solution makes selling easier on the platform.
26. Half of total sales on Amazon comes from third-party sellers
Amazon is the largest online retailer in the world, and the company runs a marketplace on all its websites, with third-party sellers on Amazon accounting for a total of 50% of total sales recorded on the platform.
27. 89% of buyers prefer to purchase products from Amazon than other e-commerce sites
There’s no denying that Amazon is at the centre of e-commerce. Based on a survey of more than 2,000 shoppers on Amazon, 89% of the respondents agreed that they are more likely to buy products from Amazon than from other e-commerce sites.
28. New Amazon sellers average $26,000 in their first year
According to a new report by Jungle Scout, new sellers on Amazon earn between $26,000 and $810,000 annually. Contrary to what many people assume, selling on Amazon for beginners is still quite lucrative and is worth it.
29. Amazon’s global reach is now more than 100 countries
Amazon’s attempt to globalize its marketplace is yielding some positive results as the company recently announced that it is now present in more than 100 countries. With the expanded reach, FBA sellers can sell their products to a much larger audience and let the company worry about getting the package to their customers.
30. Amazon generated a total of $80.44 billion in third-party seller service revenue
In 2019, third-party seller revenue generated a total of $53.76 billion, which was up from $42.75 from the previous year. In 2020, the revenue increased to $80.44 billion, with executives at Amazon predicting that the figure will increase in the next few years. The rise in revenue generated from third-party sales year-on-year indicates that the marketplace offers tremendous opportunities.
31. Amazon’s third-party seller’s statistics show that 57% of sellers are between 25 and 44 years old
When categorized based on age, sellers on Amazon over 45 years make up a sizable chunk of third-party sellers, i.e. 35%, while the age group with the fewest sellers is 65 to 80 years old (only 5% of the total.) Sellers between 25 and 44 years old make up 57% of sellers. While it is expected that sellers concentrated in each age group will differ, this stat shows that people of all age groups can sell with Amazon and even use FBA to minimize their workload.
32. Third-party sellers sold more than half of their units in Q3 2021
While selling on Amazon can be competitive, most third-party sellers report selling 56% of their units in the third quarter of 2021. Although the sales spike was expected to decline after the lockdown, it has continued to rise, offering more opportunities for sellers to earn from the marketplace.
33. 72% of Amazon’s traffic comes from mobile users
Mobile users are key to Amazon’s success as data shows that more shoppers access Amazon via mobile devices than desktop. In 2020, Amazon’s desktop traffic was 72%, while desktop was 28%.
34. 150.6 million mobile users access Amazon from mobile devices
Mobile devices have continued to soar in popularity, with more and more users accessing the internet from their smartphones and tablets. The trend is catching up with Amazon as its app ranks as the most popular shopping app in the U.S., with 145.2 million active mobile users while total mobile users stand at 150.6 million.
35. Third-party sellers made over $3.5 billion from Prime Day
Prime Day was the biggest record-breaker for third-party sellers as they exceeded $3.5 billion in sales, representing a nearly 60% year-over-year increase. Amazon announced that the biggest beneficiaries were mostly small and medium-sized businesses.
36. Amazon Prime users spend an average of $1,400 annually
The average Prime user spends an average of $14,400 per year, while non-members spend around $600. This isn’t a surprise, especially since the generous free shipping offers encourage shoppers to buy more.
37. 67% of FBA sellers use the private label method
Private labels have proven to be a successful type of business model on Amazon. 67% of FBA sellers use this method, in which they create their own product by sourcing products and branding it as their own. Many sellers agree that the model is hugely successful since the operating costs are low while the profit margins are high.
38. Prime Day is the most profitable shopping Day
Many people assume that Black Friday and Cyber Monday are the most profitable shopping days, but data released by Amazon shows that sellers enjoy massive sales the most on Prime Day. Prime users spend 18.6% times more than both Black Friday and Cyber Monday.
39. More than a third of Amazon’s revenues come from cross-selling
Cross-selling refers to the recommendations Amazon offers to shoppers after they have purchased a product. You’ve probably seen the banner that says, “Customers who bought this also bought…” According to Amazon, 35% of its revenue come from cross-selling, which means FBA sellers looking to maximize profits should consider selling products related to their existing products.
40. Amazon ranks 11th in global internet traffic engagement
By now, you’ve probably realized that Amazon’s traffic is astounding. In 2021, the company generated massive online traffic that saw it take the 11th position on the list of the top websites by traffic. About 63.5% of the entire visit come from the U.S. alone.
41. Most of Amazon’s customers are in the age group of 25-44 years
Although Amazon is open to shoppers of almost all age groups, people between the ages of 25 and 44 years make up 46% of the company’s shoppers. It’s no surprise either that a significant percentage of products on the platforms targets buyers in this age bracket.
42. Net sales from Amazon third-party FBA sellers grew by more than 50% year over year in Q3
Yet another sign that the partnership between Amazon and SMBs is paying off, Amazon states that the net sales grew by over 50% year over year in the third quarter of 2021. This is despite the fact that not all Amazon sellers achieve their goals.
43. 26% of the shoppers on Amazon buy the first product on the Amazon search results page
Many shoppers don’t have the patience to browse through the pages of Amazon when shopping for products, as 26% of visitors buy the first product they see while 46% of them scroll through at most two pages before buying a product. A lower percentage of buyers scroll through multiple pages before reaching a buying decision.
44. Most third-party sellers record 17-26% profit margins
Profit margins vary based on the expenses incurred when sourcing a product and how much the product can be sold in the light of close substitutes on the market. Nonetheless, average profit margins for most sellers range between 17% and 26% depending on the category.
45. Almost half (44%) of third-party sellers experienced higher sales during the pandemic.
While the pandemic spelt bad luck for businesses all around the world as governments imposed a lockdown, Amazon sellers experienced a boom. Unlike brick-and-mortar businesses that were forced to shut down, 44% of sellers report that their business experienced a boom at the start and throughout the COVID-19 lockdown. The unexpected growth points to the fact that selling on Amazon can be profitable even in challenging times.
46. 81% of Amazon sellers on Amazon market products on outside the website
The Amazon Marketing 2021 statistics show that most (81%) third-party sellers advertise their products within Amazon and outside the marketplace. Whether internal or external, it is obvious that sellers of small and mid-sized businesses understand the importance of generating awareness for their brands and advertising their products.
47. More than half of Amazon brands spend $60,000 per month on ads
The number of sellers that advertise their products, especially by using Amazon ads, is on the rise. According to Metoda the figure has risen over 38% from the previous year, pointing to the effectiveness of Amazon ads in bringing brand awareness and brand loyalty.
48. In 2020, Amazon had a total of 1,298,000 employees
Due to the nature of its operations, including the services it offers (like FBA), Amazon increased its workers by a staggering 62.66% in the previous year (2019.) Based on data released by the company in 2020, the company had 1,298,000 full-time and part-time employees and also plans to hire over a million more people.
49. 1 in every 4 seller branch out on different platforms
Although Amazon offers a lucrative opportunity for sellers to promote their products and earn income, 1 in every 4 sellers lists their products on other platforms outside Amazon. These channels include eBay, Walmart and even on their own website.
50. Fulfilment by Amazon ships billions of items worldwide
FBA provides an easy way for sellers to take care of their business by shifting the boring tasks to Amazon. The outcome? The total amount of products shipped by Amazon on behalf of suppliers has reached billions, according to eDesk. With more sellers signing up for the service, it’s only expected that the number of items shipped will increase exponentially.
51. 7% of Prime users order products daily
Statistics on Amazon orders per day show that 7% of Prime members order goods every day. Only 2% of non-Prime members order products every day. Only 2% of non-Prime members order products daily. Additionally, 35% of Prime users buy products a few times a week compared to only 3% of their non-Prime counterparts. Again, these stats present a fantastic opportunity for FBA sellers.
52. Amazon.com sells 12 million products
Amazon itself sells over 12 million products, but if you take into account all products sold on the Amazon marketplace by third-party sellers, that number rises to more than 353 million products. Of the millions of these products, home improvement, clothing, jewellery, electronics, kitchen products and books were the most popular.
If you read to this point, you will readily agree that Amazon is taking over the world of e-commerce and has a major role to play in the future of the industry. These statistics show us that the company is bigger than a lot of us imagined.
The business that started in 1994 in a garage has grown to become a trillion-dollar company, expanding in every way imaginable – with no sign of slowing down. With the stats above, you can gain some motivation and direction on how best to take advantage of the vast opportunities Amazon presents.
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