PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

AMAZON SMALL BUSINESS EMPOWERMENT REPORT: SMBs a Driving Force in the Amazon Marketplace

By at 3 June, 2024, 10:07 am

by Karen Kerrigan – 

It’s been 24 years since Amazon “opened its doors” to small sellers, which allowed SMBs to use the platform to connect with customers on their marketplace. Currently, 60% of sales on the platform are generated by SMBs. In recent years Amazon has been documenting SMB sales growth and other data through its Small Business Empowerment Report, and this year’s report finds that 2023 was a big year for small sellers. Of note, according to the report, and as highlighted in a blog post by Dharmesh Mehta, Amazon’s Vice President of Worldwide Selling Partner Services:

● More than 10,000 independent sellers surpassed $1 million in sales in Amazon’s store in 2023 for the first time.

● Over 330 million items were exported by U.S.-based sellers to customers in over 130 countries globally.

● Independent sellers in Amazon’s store employed more than 1.8 million people in the U.S. to support their Amazon-related business.

● More than 100,000 independent sellers have used one or more of Amazon’s generative Artificial Intelligence (AI) listing tools.

● More than 100,000 new brands launched in Amazon’s store in 2023 and all brand owners in Amazon’s store grew sales by more than 22% year-over-year.

● Independent sellers in rural areas grew sales by more than 60% year-over-year.

● The five states with the fastest-growing number of independent sellers in Amazon’s store were Maine, Nevada, Utah, Washington, and Wyoming.

In a Small Business Insider blog post, SBE Council chief economist Ray Keating digs into this latest “Small Business Empowerment Report.” He reviews some of the key data and compares that to the misguided assumptions that swirl in political and policy circles regarding large businesses and their relationship with small businesses.

View the new interactive site map and download Amazon’s 2023 Small Business Empowerment Report.

Karen Kerrigan is President & CEO of the Small Business & Entrepreneurship Council.

 

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