As an aspiring business owner, staying on top of the latest trends in e-commerce and retail is essential. Full-service Amazon agency has become one of the most influential players, dominating a large portion of the market. This article will look at ten essential Amazon statistics every business owner should know before launching their company. So let’s dive into what numbers you need to be aware of when planning your business strategy!
Amazon Statistics Overview
As an eCommerce business owner, staying up-to-date on the latest Amazon statistics is essential. After all, Amazon is the world’s largest online marketplace, and if you sell on Amazon, you’re taking advantage of a huge opportunity.
Here are some essential Amazon statistics every business owner needs to know:
- Total Number of Prime Members
As of 2019, Amazon had an estimated 150 million Prime subscribers worldwide. This number has been growing steadily over the years, with Prime members spending an average of $1,400 per year on the platform. In the US alone, there are over 90 million Prime members.
These numbers are impressive, but they only tell part of the story. To understand the scale of Amazon’s business, you need to look at the total number of active users on the site. As of 2019, that number was a staggering 310 million. That’s more than Indonesia’s population and nearly double Brazil’s population.
What’s even more impressive is that these 310 million users generated $280 billion in revenue for Amazon in 2018. To put that into perspective, Walmart – Amazon’s biggest competitor – had revenue of $500 billion in 2018. In other words, Amazon is well on becoming the world’s first trillion-dollar company.
- Total Annual Sales on Amazon
In 2018, Amazon’s total annual sales were $232.9 billion. This accounted for 4% of global retail sales and represented a 31% increase from 2017. Amazon’s sales grew by 42% to $160.7 billion in the US, accounting for 8% of all US retail sales.
These figures show that selling on a full-service amazon seller account management services is essential for any business looking to grow its sales and reach new customers. With such a large percentage of global and US retail sales on Amazon, companies need to be present on the platform to remain competitive.
- Average Order Value
As an Amazon business owner, it’s essential to know your Average Order Value (AOV). This is the average amount a customer spends on your products when placing an order. A few things can impact your AOV, such as product price, shipping costs, and promotions.
To calculate your AOV, take the total revenue from all orders placed in a certain period and divide it by the number of orders. This will give you your AOV for that period.
Here are a few tips to increase your Average Order Value:
– Offer free shipping: Customers are more likely to spend more if they don’t have to pay for shipping.
– Run promotions: Offering discounts or other promotions can encourage customers to spend more per order.
– Increase product prices: Obviously, this is only ideal for some businesses, but if you can increase costs without losing customers, it will result in a higher AOV.
- Most Popular Product Categories
As an online retailer, Amazon owes its success to its vast and varied product offerings. The company sells millions of items across hundreds of different categories.
So, which product categories are the most popular with Amazon shoppers?
Here are the five most popular product categories on Amazon, based on sales:
- Clothing, Shoes & Jewelry
- Home & Kitchen
- Beauty & Personal Care
- Average Time Between Purchase and Delivery
An Amazon customer’s average time between purchase and delivery is 2.5 days. This statistic is based on a survey of 1,000 Amazon customers in the United States. Amazon surveyed in October 2018.
- Average Return Rate
The average return rate for full-service Amazon agency sellers is around 4%.
This means that for every 100 orders placed, the customer will return approximately 4 of those orders.
A few factors can impact your return rate as a seller, such as the type of products you sell, your refund/return policy, and how well you package and ship your products.
If you have a high return rate, it could indicate something wrong with your products or your business practices. For example, if you sell easily breakable or damaged products in shipping, your return rate is likely higher than average.
To help lower your return rate, ensure you’re providing quality products and clear instructions on how to use them properly. You should also have a generous and easy-to-understand refund/return policy so customers feel confident about purchasing from you.
- Amazon Advertising Spend
As an amazon ppc management service, knowing how much you should spend on advertising is essential. After all, advertising is one of the key ways to promote your products and grow your sales.
Fortunately, Amazon has released some data on advertising spend that can help you make informed decisions about your budget. Here are some essential Amazon statistics every business owner needs to know:
-In 2018, Amazon advertisers spent an average of $2.5 million on advertising per month.
-The vast majority of Amazon advertisers (70%) spend less than $1,000 per month on advertising.
-However, a small minority of advertisers (5%) spend more than $5 million per month on advertising.
- Number of Employees
As of December 2019, Amazon had over 798,000 employees worldwide. This number has been growing steadily since the company was founded in 1994. In the United States, Amazon employs over 560,000 people. The majority of these employees are in fulfillment and customer service centers.
- Global Reach of Amazon Marketplace
The Amazon Marketplace is a global phenomenon. In 2017, Amazon had 310 million active customer accounts worldwide, and those customers made up a vast portion of the company’s $177.9 billion in net sales. But the Marketplace isn’t just an American success story; it’s a global one.
Amazon operates Marketplaces in 11 countries outside the US: Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, and the United Kingdom. And those international sites are growing fast. In 2017, 52% of Amazon’s total unit sales came from its international businesses, up from just 29% in 2010.
The company has plans to continue expanding its reach. In 2018, the full-service Amazon agency announced that it would be opening a new marketplace in Turkey and that it was working on launching sites in Vietnam and Indonesia. And there’s no reason to think that the company will slow down anytime soon. With an ever-growing customer base and increasing numbers of people shopping online, the global reach of the Amazon Marketplace is only going to continue to grow.
- Primary Customers on Amazon
As of 2018, Amazon’s primary customers are millennials, with 44% saying they shop on the site monthly.
It is followed by Generation X (37%), baby boomers (35%), and Generation Z (24%).
What’s more, Amazon is attracting new customers: 61% of respondents in a 2019 study said they started shopping on Amazon within the past five years.
Understanding the key Amazon statistics is essential for any business owner looking to succeed in today’s digital world. From understanding what items are most commonly purchased on Amazon to learning which countries it operates in and how much revenue it has generated, these ten essential Amazon statistics provide invaluable insight into the company’s success and potential as a platform for businesses of all sizes.
With this knowledge, you can make informed decisions about the inventory management of Amazon and increase your chances of success in this robust global marketplace.