Amazon third-party sellers raked in $3.5 billion in sales on Prime Day
Yea, that’s a lot of paper.
According to Amazon, third-party sellers did insanely well on Prime Day and earned over $3.5 billion in sales. Compared to 2019, that’s a hike of 60%. At the same time, Amazon didn’t reveal any of their earnings during the Prime Day Sale.
But they didn’t forget to mention that third-party sellers business grew even more than Amazon’s retail business, on a year-to-year basis. Then there’s their $18 billion investment to help small and medium-sized businesses prosper on its platform.
In disclosing these statistics, it is more than evident that Amazon wants to present a better picture of its business. Amazon wants to present itself like a big business that is a friend to smaller businesses and an overall positive influence in the retail space.
All that comes in light of a report in April, which suggested that Amazon took advantage of third-party seller data to design its products. As expected, that didn’t sit too good with Amazon’s third-party sellers. In July of this year, Jeff Bezos, Amazon’s CEO, testified in front of the House Judiciary Committee. During the proceedings, Bezos was asked about these accusations. His response was blunt, claiming he could not guarantee that Amazon did not take advantage of any third-party seller data.
Amazon Prime Day started in 2015, and it turned out a runaway success for Amazon, both for its promotional offers and its retail business. This year, Prime Day was to happen mid-July, but the event was pushed to October because of the coronavirus pandemic.
This year, more than 2.5 million third-party sellers were selling their goods during Prime Day. Those 2.5 million sellers constitute approximately 58% of Amazon’s online retail marketplace. Some of the most sold products by Amazon’s third-party vendors were part of these categories: wireless accessories, bedding, wellness and nutrition, crafts, arts, and so on.
JP Morgan analysts believe that the mega-sale has generated approximately $7.5 billion of revenue for Amazon. On the other side, eMarketer’s forecast brings Amazon Prime Day revenue near $10 billion. Yea, that’s a lot of paper.
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