70 Percent of Sellers Saw Amazon Revenue Growth in 2018

Feedvisor, the “AI-first” optimization and intelligence platform for large sellers and brands on Amazon, unveiled its State of the Amazon Marketplace 2019 report. The analysis exemplifies Amazon’s unmatched influence over e-commerce seller success, as well as the elevated roles that private labels and advertising will continue to play.

To understand the evolving state of Amazon’s dynamic marketplace, Feedvisor conducted an in-depth analysis on sellers’ goals, plans for expansion, revenue figures, areas of concern, advertising strategies, and more. Findings include:

• Sellers continue to see significant growth on Amazon: For nearly half of sellers (49 percent), all or most (80 to 100 percent) of their annual e-commerce revenue comes from Amazon. Likewise, nearly three-quarters of sellers (70 percent) saw revenue growth in the last year, with a majority (61 percent) seeing growth by as much as 40 percent.
• Loyalty to Amazon grows, wanes for Walmart and eBay: Nearly two in five Amazon sellers (37 percent) do not plan to expand to other marketplaces this year, up by 5 percent from 2018. Similarly, the percentage of sellers who plan to expand to Walmart (17 percent) and eBay (10 percent) declined from last year, by 8 and 9 percent respectively.
• Private labels gain importance for sellers: The majority of sellers (62 percent) have private label products in their catalogs, and one-quarter (25 percent) are exclusively selling private label products. As such, launching new private label brands is a 2019 business goal for nearly one-third of sellers (32 percent).

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“Amazon has become the go-to shopping destination — nearly three-quarters of consumers go straight to the platform when they are ready to purchase a product,” said Dani Nadel, President and Chief Operating Officer, Feedvisor. “For that reason, Amazon is the single most important tool for businesses to leverage today. An agile Amazon strategy can help sellers maximize their reach, relevance, and revenue, as well as drive optimal performance.”

As Amazon continues to explore tactics that support its customer-first business model, the report shows that sellers are eager to improve the customer-facing aspects of their businesses:

• Advertising is biggest area for improvement: Though nearly three-quarters (74 percent) of sellers are already advertising on Amazon, two-thirds of sellers (68 percent) are spending $10,000 or less on it each month. Strategic advertising is the no. 1 area of business sellers would like to improve over the next year (51 percent).
• Positive customer feedback is a top priority: With Amazon’s customer-centric business model, an overwhelming majority (95 percent) of sellers said ratings and reviews are important to their business on Amazon. Likewise, nearly half (49 percent) cited this as an area they want to improve on in the next year.

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The Amazon Marketplace is a source of tremendous opportunity, but it is also complex and ever-changing — our analysis found that the majority of sellers need help managing their Amazon operation,” Nadel continued. “With support from intelligent, AI-driven technology, data, and industry experts, sellers can accurately measure their end-to-end performance and develop strategies to stay one step ahead of the competition.”

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