With more than 300 million people registered on its platform, Amazon is the world’s largest online marketplace. And more people are still setting up Amazon stores, so if you want to make money in online selling, you cannot afford to ignore this platform.
Amazon statistics over the years have shown that online shopping is here to stay. And with the change in the online shopping landscape because of the 2020 pandemic, the trend isn’t going to go away anytime soon.
In 2021, AMZ accounted for more than 40% of the U.S retail eCommerce market. It increased its Prime membership by 150 million registered members too. These Amazon statistics are huge, and every online retail seller should leverage this fact.
If you want to get into selling online and make more money for yourself, you must understand how to use this customer data. Understanding Amazon seller statistics will give you the advantage you need to make data-driven decisions for your business.
To develop a comprehensive understanding of this business, we’ll discuss some of the most important Amazon statistics. We’ll learn tips for leveraging the use of advanced tools that can help you find winning products to sell. Let’s get right to it below.
Experience online shopping beyond comparison
The way online shoppers make purchasing decisions is changing overnight these days. And the preferences of online shoppers are ever-changing. Gone are the days when people choose to buy something online because they want something as a convenience. People are more demanding nowadays, and they want more accountability that comes with every purchase.
Customer reviews, the way Amazon sellers reply to criticism, feedback on shipping times—these things matter a lot. Because of that, you must learn how to give online shoppers a great online shopping experience, beyond any comparison. This is the key to getting repeat online shoppers who will be your loyal buyers as you transition online.
As of late, new technology is taking over, and customer behavior continues to change. Let’s take a look at some of the most important Amazon statistics you should know as a seller. By getting acquainted with these statistics, it will be easier for you to improve your store.
10 Most Important Amazon Statistics You Should Know in 2023
Here are 10 of the most important stats that you should know if you want to join the league of online retailers in 2023.
9 out of 10 consumers visit AMZ to check the price of any product.
Leaving all the places behind, AMZ is the preferred place for any person to check price and decide their purchase ability. It isn’t only because AMZ is a place where they can get the most competitive pricing. More than that, they want to ensure they get the best deals available.
Think about it. How many times have you opened up the web browser in the last year just to look for prices? As soon as you got interested in buying a new perfume or a pair of pants, did you check online? When have you seen an ad on Facebook or Google? These days, we are all surrounded by suggestions and advertisements, and it’s inevitable.
It affects our way of purchasing things and our online shopping behavior. One of the most important Amazon retail product sales statistics is this – 90% of people use AMZ for price checking. This means that people are more likely to buy from your store if you have the best price in town.
In addition, people have likely made up their minds to purchase once they start researching a product’s price. Before going to the Amazon marketplace, you already know the top Amazon products you want to buy and which product categories to visit.
It might not happen outright, or it might happen weeks or months from now. But people are already investing time in researching what they want to purchase. This means that a little push or nudge like a discount can make them commit. They will be more likely to check out, too, if they get lightning-fast delivery and reliable customer support.
Only 2% of Echo owners have purchased over voice.
More than 50 million Echos have been sold. But people using Echo still want to buy products through traditional means, not through voice. This is quite a small percentage, considering that AMZ markets the Echo as your “personal assistant” that can do anything.
However, there is an increase in the use of voice purchasing as a whole. According to Narvar, almost 40% of consumers with the voice-enabled device have used it to purchase at least once. This stat shows that although there is still much skepticism when it comes to voice purchasing, adoption is increasing.
In the following years, we might see a further increase in the number of Echo voice purchases. As more and more people start to trust the system, this number could slowly grow. But for now, this is one of the most important statistics to pay attention to.
AMZ sells more than 400 million products in total.
AMZ is a full-fledged and customer-centric service provider. Its main mission is to list anything online shoppers prefer. Therefore, there is almost every product from almost all industries in the world on their website. AMZ wants you to find anything you need on their site, so you won’t have to look for it elsewhere.
There are a lot of products ranging from books, media, electronics, household items, and many more. And, customer service works it best, too, in the quest to make everything available to everyone.
While this is a great thing for AMZ and the customers, it is daunting for Amazon third party sellers. The competition is always at its peak. This means that all Amazon sellers have to put in their best to be on top. At the same time, it also provides an opportunity. If you can fill in the products and services customers want, you can make a lot of money on the platform.
AMZ sells over 1.1 million home improvement products.
The number of homeowners embarking on home improvement projects is increasing rapidly. And this number has only grown bigger during the pandemic. Because people are less likely to hire outside help due to quarantine restrictions in some areas, they resort to DIY (do-it-yourself). This phenomenon has contributed to one of the most interesting Amazon statistics of 2021.
As a result, more people are searching for the best home improvement products on the internet. Since AMZ is the first place that customers search for their products, home improvement equipment should be in abundance on the website.
That’s why AMZ rules the home improvement industry with a massive 80% share of the entire industry revenue. Nothing sells home improvement products better than Amazon. And as a seller, you need to consider this information. It means that if you are interested in selling online, the home improvement category is worth looking at.
It also shows that majority of the customers are now transitioning to e-Commerce. Even in an industry that was previously dominated by brick-and-mortar hardware stores, AMZ is now dominating.
147 million people have Prime membership in the US
By the end of March 2021, prime membership in the US alone will have increased to 147 million, from 118 million in March 2020. This accounts for an increase of 24.6%. With almost 300 million registered users in 2021, this means that almost half of Amazon’s users are Amazon Prime members.
What does this mean for your Amazon business? This means that using FBA for your fulfillment method is a big priority. That is, if you want to leverage the purchasing power of Amazon Prime members.
This massive community of 147 million loyal Amazon customers is possible because of Prime membership. Amazon Prime members do not only pay for their products. They also add an extra fee for other benefits, such as faster delivery and exclusive deals over other general customers. There is also a shopping holiday called “Prime Day,” where Amazon Prime members splurge on discounted prices.
$1400 per year is spent by a Prime member
This figure is around double the annual spending of a non-prime member, coming to around $600 per year. And this is one of the most important Amazon statistics that you must consider if you are serious about making money.
If you want to increase your revenue, the answer is a no-brainer. You must focus much of your marketing efforts on winning the Prime members. These Amazon statistics are not surprising at all. With a minimalist fee that Prime members pay, they tend to be loyal to the website. They are also likely to be more frequent buyers on the platform. This means that if you can win them over once, you can expect them to become loyal repeat customers, too.
Whatever the Amazon statistics tell, it is evident that Prime members are given preferences over the others. And they tend to be more active when it comes to buying products from Amazon. Keep that in mind when making exclusive promotions.
FBA provides an increase in selling by 30-60%
FBA third party sellers are more likely to sell than FBM Amazon sellers, resulting in more conversions and net sales. This is not a surprise, since FBA mostly caters to the precious group of Prime Members.
As part of online shopping, no one wants to pay shipping fees. Also, customers are more likely to believe the shipping offered by AMZ than shipping by merchants themselves. Using the FBA fulfillment method gives you access to these perks, which increase your conversion rates by a lot.
The benefits of a Prime subscription include 2-day shipping on Prime-eligible products. There is an inseparable aspect of trust among the prime members and the platform. Prime members pay to be served one tier higher than normal customers. It would be wise to give them the treatment and service they deserve. This will go a long way when it comes to the success of your business.
AMZ shipped over 5 billion products worldwide in 2017
As an FBA seller, you are pretty much confident and reliant on the fact that AMZ handles your shipping. Other customer service-related issues will be handled by them as well.
And when it comes to shipping and customer service, Amazon comes number one. Through its extensive logistic network throughout various countries, AMZ has achieved great success in satisfying its customers with the fastest delivery.
If you challenge AMZ on this aspect you will lose for sure! No one can challenge Amazon’s on-time shipping capabilities.
If you examine it closely, it’s a win-win situation for everyone. If you opt for FBA, you are relieved of the burden, and on the other hand, Amazon can work on its customer-centric approach.
More than 50% of the website’s sales and net income come from third-party sellers
In the second quarter of 2021, 56% of Amazon net sales came from third-party sellers. The trend of third-party sellers entering the Amazon marketplace has shown upward growth, and it is ever-increasing. Third-party sellers’ stories are also on the rise.
In 2020, the website generated approximately 80.5 billion dollars in third-party seller services. It amounts to an increase of nearly 50 percent over the previous year.
This is great news for AMZ and the sellers as well. For Amazon third party sellers, this trend has created a big opportunity as it promotes direct-to-consumer business.
It helps independent sellers get complete control over their business. As you transfer the burden of shipping and customer service to AMZ, you lessen your duties too. This allows you to focus on more important tasks at hand, such as marketing your products.
80% of sellers sell on other platforms outside of Amazon
One of the most interesting Amazon FBA statistics is this. In addition to selling on AMZ, 80% of the sellers sell on other platforms. Selling on AMZ is a great opportunity. The presence of AMZ in the digital market is crucial, and most sellers can feel their growth on the website.
However, this cannot be the only opportunity.
There are decent reasons you don’t want to limit yourself to AMZ only. The biggest amongst them is competition. You sometimes do everything but fail to get the momentum because of the massive competition. Competing against AMZ itself is the biggest challenge.
It does not mean sellers completely abandon the platform. There are greater consequences to doing so. But, they want to try other platforms where they can be more successful. And that is justifiable also.
Conclusion
Amazon is the largest online marketplace, and it is dominating the online market. It has created countless opportunities for sellers around the world. It’s a platform where you can quickly shift from a passive business to an active one.
In the end, it is important to understand that AMZ is very much like the other businesses. You must have a good strategy, planning, investment of time and energy, and powerful resources to fuel your business to succeed.
If you are confident over that, you can get plenty of guides to assist you to get to the top of the chart. We recommend ZonBase for an easy start, continuous support, and high retention of your business status as the most successful seller.
ZonBase: The most powerful Amazon seller software tool to boost your Amazon sales
Using FBA indeed provides a boost to your sales. But understanding the prerequisite of a successful business is the heart of your effort. Sometimes, it’s not all about Amazon seller statistics. It would help if you also thought about reaching your customers. You need products to sell, and you must find products that sell well. More importantly, you want to find products with less competition.
ZonBase has been continuously serving its clients from all around the world for the past 9 years in product research and listing optimization. As Amazon statistics go, seller software like Zonbase can take you to the next level. It’s high time you employed ZonBase if you want to increase your sales tremendously, start to rank on page one, improve your listings, and reduce your expenses on PPC campaigns.
