04 Jun 64% of sellers make more than half of their total e-commerce revenue from Amazon and still fear that Amazon will compete with them #unsustainable – from “The State of the Amazon Marketplace 2019” v…
64% of sellers make more than half of their total e-commerce revenue from Amazon. More and more sellers are placing Amazon at the center of their online strategies, noting the ROI and access to a wide consumer base it provides.
Sourced through Scoop.it from: fv.feedvisor.com
WHY IT MATTERS: you have to sell where people are (location location location). So everyone sells on Amazon. But at the same time, Amazon has access to analytics data about best selling products where they create private labels of best selling products – effectively using the marketplace as a "revenue generating" market research tool. Unsustainable for retailers that compete with Amazon. Alternatives are being discussed in every meeting that I have, from home grown private solutions to local or regional options. But the crocks of the matter remains: people are hanging out on Amazon so if you build a marketplace your solution must absolutely allocate sufficient funding to draw people in. So plan to allocate at least as much in marketing as you do in technology – then repeat every year for the foreseable future.