"There are currently more than 2 million sellers on Amazon worldwide" is the most common description of the Amazon Marketplace. However not only is it not true this figure is also irrelevant. We estimate that 25% of Gross Merchandise Volume (GMV) on Amazon.com marketplace is through just top 1,000 sellers.
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Last week Walmart passed the milestone of 15,000 Walmart marketplace sellers. On average a seller has 2,550 products listed for sale. And yet it is hard to know what any of these mean in terms of the potential of the marketplace since none of these figures are performance related.
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Marketplace Pulse founder Juozas "Joe" Kaziukėnas presented a keynote at Retail Global Las Vegas 2017 conference on September 12th. Joe's keynote, titled "The Future of Marketplaces", looked at what makes a successful marketplace, and how the marketplace model built by Amazon 17 years ago - despite them leading the market - might not be the only way to do it.
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Sandy Douglas of Coca-Cola said "Don't think of e-commerce as a channel. It's a way for consumers to research, to buy, to experience brands and then, ultimately, to have them have fulfilled." It's rare to see traditional retailers, or manufacturers get it.
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39% percent of sellers received half or more of their feedback in a single marketplace out of those with feedback in all European marketplaces. So while it is true that most European sellers sell in more than one marketplace, not all of them do as successfully internationally as in their home marketplace.
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In the end there are very few winners. And the biggest loser might just be Amazon.
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Historically Amazon and eBay sellers were born out of bootstrapping. Same happened in the supporting market. But increasingly so we started to notice venture-backed businesses make moves in the market. Both as sellers, and as solution providers to other sellers.
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We have a love-hate relationship with private labeling. On the one hand it has allowed many sellers launch their own brands, and thus move beyond reselling. But on the other hand private labeling done at scale is ruining Amazon's catalog.
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Over 21,000 scam sellers were detected in the last 12 months. Those sellers on Amazon.com collectively received close to one million negative reviews. Since not all customers leave a seller review - even if the experience was bad - the number of orders affected by this issue is undoubtedly even larger. Amazon has so far not taken any action, which is arguably disappointing.
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We found that out of the Top 100,000 Amazon.com sellers, just 283 have committed to the program. Meaning for majority of the products they offer Prime shipping, and the shipping is not done by FBA. Seller Fulfilled Prime (SFP) launched in 2015 allows marketplace sellers to offer Prime two-day shipping without using Fulfillment by Amazon (FBA).
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