WWD Digital Daily
Amazon Sees Continued Strong Growth From Independent Sellers
The company's annual Small Business Empowerment Report reveals signs of resiliency from U.S. entrepreneurs and how they're using Amazon for increased sales.
In 2022, Amazon's stores saw more than 4.1 billion products sold from independent sellers alone, averaging more than $230,000 in sales. Importantly, these independent sellers, said the company, are mostly small and medium-sized businesses, which Amazon continues to focus on with investments, innovations and initiatives.
Currently, Amazon's report finds that more than 60 percent of sales on its online marketplace are from independent sellers who provide a large range of products, competitive prices and convenience for Amazon consumers. In 2022, these businesses exported more than 260 million items. The top five categories being shopped by U.S. independent sellers in Amazon's stores include health and personal care, home, beauty, grocery and apparel.
While the five states with the most independent sellers in Amazon's stores are California, Florida, New York, Texas and New Jersey, the company's report found that there is also a great amount of opportunity for small businesses across the country. Sellers in rural areas, including parts of Illinois, Louisiana, West Virginia and Wyoming together reached more than 40 percent year-over-year sales growth in the Amazon store.
“Small businesses are the heart of our local communities and the backbone of the U.S. economy,” said Dharmesh Mehta, vice president of Worldwide Selling Partner Services at Amazon. “Amazon invests billions of dollars annually to provide entrepreneurs with a constantly improving set of valuable tools and resources to help them gain access to capital, quickly launch in our store, build their brands, and rapidly scale and reach more customers. Amazon is committed to the success of small businesses, and we are excited to continue innovating on their behalf and help them grow into thriving success stories.”
According to Amazon's report, selling in Amazon's store has enabled independent sellers to create an estimated 1.5 million jobs in the U.S. These jobs range from managing and operating to supporting a business's efforts to sell through Amazon's store. Additionally, Amazon offers access to a range of tools, programs and services to help independent sellers get to the next level and grow their brands. The company's research shows that brand owners in the U.S. grew sales more than 20 percent year-over-year in Amazon's stores in 2022.
“Ever since small and medium-sized businesses started selling products in our store 23 years ago, I've been impressed by their passion, creativity and commitment to customers,” said Doug Herrington, chief executive officer of Amazon Worldwide Stores. “All these years later, having met many sellers in person, I remain blown away by their brand building, agility and ability to look around corners and anticipate new product trends. I am proud that hard-working, diverse and smart entrepreneurs continue to find success growing their businesses in Amazon's store, and I appreciate the immense value that together, we are able to bring to customers around the world.”
Amazon continues to promote and distinguish small businesses in its stores throughout the year including through an ongoing “Support Small” curated storefront that encourages consumers to shop small and marks small businesses with the Small Business badge, which consumers can utilize to easily discover new businesses.