Amazon accounts for half of all e-commerce conducted in the US, and third-party sellers last year made 58% of the sales in the marketplace, according to the company’s annual report. Much of that is driven by small and midsize business partners, or SMBs, of which Amazon has 1 million nationwide.
Retailers of all shapes and sizes – from brick-and-mortar to e-commerce – are increasingly feeling the influence of the tech giant. The right answer to the Amazon question will vary from business to business. Whether your company is all in, all out, or somewhere in between, our takeaway is simple: Having no Amazon strategy is no longer an option.
To help you navigate, we’ve rounded up reports, reviewed the data, spoken with experts, and boiled it down into this handy guide.
Our sources include:
- Mike Farrell, senior director of market and customer intelligence for Sidecar, a multichannel e-commerce service.
- Melissa Horvath, owner and designer for Pittsburgh-based Sweet Water Decor, whose sales increased more than 3 times from using the platform.
- James Thomson, formerly business head of Amazon Services and now partner at Buy Box Experts, a consulting firm that specialises in marketplace management for Amazon sellers.
- Melanie Travis, co-founder and CEO of upmarket swimwear brand Andie, who has elected to sell directly to customers through her company’s own platform.
- Chris McCabe, a former investigator at Amazon and the founder of a consultancy that helps Amazon sellers whose accounts have been suspended.
- Nick Denissen, Amazon’s first-ever vice president of small business, and former vice president of marketplace business.
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