One of biggest mysteries about the Amazon marketplace is just how big it is. The only time Amazon has ever publicly mentioned this was in January 2015 when they said that there are more than 2 million sellers. The thing is, today there are at least 4 million sellers. Likely as much as 5 million sellers. But just like the 2 million figure from 2015, this is a meaningless metric.
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Etsy has recently implemented Etsy Payments, an improved and rebranded Direct Checkout, requiring all sellers to use it. This has caused a big uproar among sellers, some of which felt like they were being forced to use a lesser option. Starting June 1st any shop without Etsy Payments enabled was suspended.
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Given the current list of top sellers how many of them were also top sellers a few months ago, or as far as two years ago. From the current top 1,000 sellers on Amazon US roughly 50% were in the top 1,000 two years ago too.
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The Wall Street Journal recently reported that Nike has agreed to sell some of its products directly on Amazon.com. This Nike deal is special because it is one of the largest brands ever which couldn't no longer ignore Amazon. For as much as they invested into brick-and-mortar stores and their own online presence, Amazon has grown too big to just leave for third-party sellers to have a go at.
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For the first time ever eBay has released US state-by-state data showcasing sales and number of sellers statistics. 6.6 million American sellers sold $27.97 billion worth of goods in 2016. On average each seller sold $4,196 worth of goods. Top 5 states California, New York, Florida, Texas, New Jersey are leading in terms of sales. By adding the 6th state Illinois they together add up to 50 percent of the market.
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Most modern marketplaces are optimized for suggesting what customers might want to buy, but social commerce incentivizes to explore the marketplace with social features integrated inside. As eBay over time transitioned towards established sellers who sell in quantity, Alibaba's Taobao has continued to develop the true consumer-to-consumer exchange.
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Amazon has announced their biggest acquisition yet, by offering to pay $13.7 billion for the Whole Foods grocery chain. This sent the whole retail industry into a shock, eroding billions in market capitalization. Yet most of it was out of fear of the unknown, since it is not immediately obvious why Amazon would go that route. Whatever the end result is going to be, we think ultimately this acquisition will lead to a platform.
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Marketplaces are not created equal, and one of the biggest differences is how they treat sellers on the platform. While technically all marketplaces consist of a list of sellers, different marketplaces approach them differently.
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In 11 months since July 2016 Amazon India marketplace has grown from 100,000 to 200,000 sellers, doubling in size. In the most recent earnings report Jeff Bezos, CEO of Amazon, said "It’s still Day 1 for e-commerce in India". The growth of the marketplace is proving to match Amazon's multi-billion investment into the country.
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Since the last time we looked at Fulfillment by Amazon (FBA) usage among marketplace sellers in January, it has grown in all countries. World wide the growth of Prime memberships is resulting in FBA usage growth. Based on our research we didn't see much growth among top sellers in the US. However all European markets have grown considerably.
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