Amazon is the largest online marketplace in the world. There are plenty of opportunities for profitable Amazon business. But how do you get the most out of Amazon in 2022? Let’s talk about it today!
Why selling on Amazon in 2022 is profitable?
If you are considering starting your own business, you really can’t go wrong by setting up a business associated with the world’s leading online retailer. In the world of e-commerce, Amazon is a tool that online sellers simply cannot ignore.
In the 25 years since its inception, Amazon has grown into the leading e-commerce platform not only nationwide, but the entire world!
The main advantage of starting a business on Amazon is obvious: it is the largest online marketplace in the world.
As of June 2021, Amazon has over 2.45 billion monthly visits worldwide.
Additionally, Amazon Prime has over 200 million members, with Prime Day sales reaching a whopping $11.79 billion in 2021.
Amazon has many business opportunities and types of businesses that you can start related to the platform.
Every month, over 197 million people around the world visit Amazon.com.
Some statistics and more about Amazon’s opportunity in 2022
In 2018, Amazon’s share of the US e-commerce market reached 49%. This is 5% of all retail spending across the country.
In comparison, that’s more than Amazon’s top three competitors combined: eBay holds 6.6%, Apple 3.9%, and Walmart 3.7%.
As 2019 begins, many sellers are wondering how they can get a bigger piece of Amazon’s profitable pie.
Well, it all starts with understanding the platform’s key areas of capability, as well as acknowledging the challenges and hurdles that Amazon sellers face.
Amazon is thinking about everyone!
As the nation’s largest online marketplace, Amazon offers an almost endless variety of products to choose from.
Every day, customers search and sift through millions of products in search of the one that suits their needs.
As Amazon’s product offering continues to grow, let’s take a look at how this is affecting sellers, both online and offline.
Amazon sells over 12 million items.
As part of its mission to help customers “discover everything they might want to buy online,” it’s critical for Amazon to sell as many different products as possible across as many industries as possible.
In its quest to be everything to everyone, Amazon has created an incredible catalog of over 12 million products, books, media, wines and services.
This is great for Amazon, but also quite difficult for sellers. On a platform that is constantly striving to expand its product range, the competitive landscape is at an all-time high.
Amazon sells over 1.1 million home products.
For a while, the home improvement industry was thought to be immune to the dreaded “Amazon effect.”
The spontaneous nature of many home improvement projects and the convenience of professional assistance in selecting the ideal product continued to draw shoppers to large brick and mortar stores such as Home Depot and Lowe’s.
However, the Jumpshot report shows that Amazon has over 80% share of the home goods market and its growth continues to outpace everyone else in the category.
Amazon opportunities: Amazon Prime
When Amazon Prime first launched in 2005, members paid $79 a year for free two-day shipping on qualifying purchases.
Since then, the list of benefits for Amazon Prime members has expanded significantly. It includes perks such as early access to lightning deals, free monthly e-books, unlimited video streaming, and even discounts at brick-and-mortar Whole Foods stores.
As Amazon Prime offerings grew, so did the number of members
In fact, Amazon now has more active Prime members than non-Prime people – after all, 95 million people have an Amazon Prime membership in the US!
By the end of 2018, the number of Amazon Prime subscribers reached a staggering 95 million in the US alone.
That’s up from 85 million in 2017 and now accounts for 59% of Amazon’s total U.S. customers.
These are customers who not only shop on Amazon, but also pay a monthly fee for exclusive benefits and faster shipping.
Thanks to Amazon Prime, the platform has built a huge community of 95 million loyal Amazon shoppers.
Amazon opportunities: All about FBA
Efficient delivery is a key component of any online business or marketplace.
Amazon has known this since its inception and has always valued its ability to quickly deliver orders to its customers – which is exactly what FBA was created for!
As part of its efforts to put shoppers first, Amazon continues to strive to create a better experience for its customers and deliver products to them even faster.
FBA gives sellers a 30-50% increase in sales.
Let’s recap!
Amazon is a dominant platform that is full of opportunities for sellers from almost every industry.
It is on Amazon that consumers compare products to shop! And it is on Amazon that the product catalog is constantly updated!
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