Amazon is the world’s largest e-commerce marketplace, with over 300 million active customers and 7,000 products sold every minute.
However, with such a large marketplace comes intense competition. On average, 3,700 new sellers join the platform every day to tap into Amazon’s vast customer base and drive revenue growth.
But how can you stand out from the competition and grow your sales and profits? How do you take advantage of the immense opportunities that are available in the marketplace and create your strategies in 2023?
To answer these questions and more, we at SellerApp, have teamed up with Payoneer, a global payments solution, to conduct a joint analysis of the Amazon seller landscape in 2022.
The report provides an in-depth analysis of the trends, challenges, and opportunities that shaped the Amazon marketplace in 2022, along with actionable data to help optimize sales and advertising strategies for growth in 2023.
One of the main reasons for Amazon’s success in e-commerce is the growing number of sellers and shoppers joining the platform.
In fact, with 9.7 million sellers on the platform in 2022 and 197 million monthly visitors, Amazon has generated an impressive revenue of $502.19 billion.
Notably, 22% of this revenue was generated by third-party sales. As a result, Amazon has established itself as a dominant player in the industry, maintaining its position as a marketplace leader in 2022.
“To stay relevant and succeed in this rapidly changing environment, retailers must understand the emerging trends and seize new opportunities with agility and innovation,” says Sayantan Chatterjee, Director of Products at SellerApp.
As more and more sellers flock to Amazon to sell products to the vast customer base, it’s crucial for sellers to understand why customers are choosing e-commerce over traditional brick-and-mortar shopping.
According to our report, convenience is key for online shoppers, with 89% of consumers preferring online shopping over in-store shopping due to its ability to save time and money. In addition, 76% of consumers cited the availability of products not found in local stores as a reason for shopping online.
Our report also highlights that Amazon consumers usually have a high purchasing power and are willing to pay more for quality products. The average Amazon buyer has an annual household income of $84,449.
This underscores the significance of tailoring sales and advertising strategies on Amazon to meet the unique needs of its consumer base.
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Amazon has proven to be a highly lucrative platform for sellers, with an impressive 76% of them achieving profitability and over 63% of them making profits within the first year. In fact, a considerable number of Amazon sellers report exceptional success, with 36% making over $5,000 per month and 23% making over $10,000 per month.
However, despite all these successes, sellers must diversify their marketing strategies and embrace multi-channel selling for long-term sustainable growth. In 2022, nearly 40% of sellers grew their brand using social media, influencer marketing, and other marketing efforts, indicating the importance of integrating various marketing channels.
Moreover, Amazon experienced significant growth in ad revenue in 2022, incentivizing brands and retailers to invest more in advertising. In Q1 2022, Amazon’s ad revenue increased by 25% to $7.9 billion, which grew to $12.4 billion by the fourth quarter, an impressive growth rate of 32%.
Amazon’s introduction of new ad formats, such as OTT ads, DSP, and measurement tools like Amazon Brand Analytics and Brand Metrics, also enabled sellers to promote their products beyond Amazon’s own marketplace. It resulted in sellers and retailers spending big advertising budgets on Amazon.
Despite economic challenges, Amazon has proven to be a lucrative platform for sellers.
However, sellers need to diversify their advertising strategies and embrace multi-channel selling to ensure long-term sustainable growth.
And to expedite your growth, Amazon Seller Report serves as a timely resource that equips you with powerful insights to optimize your operations, drive growth, and achieve new levels of success.
“The newly released Amazon End of Year Report equips e-commerce sellers with powerful insights to optimize their operations, drive growth, and achieve new levels of success.” – Gaurav Shisodia, VP-India at Payoneer
Get the full report here to learn all the insights about Amazon sellers, customers, categories, and growth trends. It can help you make more data-driven decisions to grow your business and stay ahead of the competition.