Articles

Apr 11, 2017

Forget Stealing from Retail Stores, and Hacking Websites - Hackers Have Their Targets on Amazon Seller Accounts

Amazon marketplace has advanced from a website where people list some random products on, to a platform where true retailers build their business. This meant that gaining access to a seller's Amazon account is potentially very lucrative. Not only can a hacker use it to gain insight about the seller's business, best products, ads performance, etc., but also cause big cashflow issues. We think the attacks on Amazon seller's accounts are only going to get more aggressive and sophisticated. Crime is moving online, and Amazon seller accounts are one of the targets.

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Apr 5, 2017

Amazon Cash Is a Bigger Move Than It Appears

We wanted to elaborate on why Amazon launched Amazon Cash, and why payments are key. In the US it is easy to underestimate the size of the population without access to credit cards or any type of banking. While it might appear like everyone has a credit card, it couldn't be further from the truth. This move thus enables access to Amazon.com for millions of new customers.

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Apr 4, 2017

Becoming a Top Amazon Marketplace Seller Takes Years

This time we looked at how many of the top Amazon sellers have joined in the past 365 days. It is an interesting number to look at because as we found, it shows that it takes a while to become a top seller. We found that just 5.6% of top 10,000 sellers joined during the past 365 days.

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Apr 3, 2017

Verified Sellers - the Future of Amazon Marketplace?

We think Amazon should introduce a Verified Seller status. A verified seller is checked by Amazon to have a valid business, no history of counterfeit, good rating, etc., but also willing to publish their business information. It's a seller who doesn't need to hide behind the anonymous name.

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Mar 31, 2017

Amazon Is an E-Commerce Infrastructure Company, Not a Retailer

Amazon is positioning themselves as a e-commerce infrastructure company, not a retailer. Their message to big brands is that they are not selling products to Amazon for resale, but instead using Amazon as a platform to reach a massive audience, and using their infrastructure to facilitate all e-commerce tasks. In this view, Amazon is not a middleman, but instead an enabler.

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Mar 29, 2017

Walmart Marketplace Is Roughly 1% of Amazon.com Marketplace Size

Since Walmart marketplace has been receiving a lot of attention from marketplace sellers, we decided to investigate how big the opportunity of selling on Walmart really is. We found one way to look at it - by comparing seller feedback. By comparing all feedback received by all Amazon sellers, to all feedback received by all Walmart sellers, we could get a relative number.

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Mar 28, 2017

Amazon Lost over $7 Billion Last Year by Providing Free Shipping

Last year Amazon collected $8.9 billion in shipping revenue, but spent $16.2 billion on shipping costs. Thus the net shipping cost is $7.2 billion. Because of the growth in Amazon Prime membership and the current $25 minimum to get free shipping, fewer people are paying for shipping. This has resulted in shipping costs growing faster than shipping revenue. As shown in the chart below, during the busy Christmas periods the difference is very large.

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Mar 23, 2017

Walmart Marketplace Passes 10,000 Sellers Milestone

Today Walmart passed a big milestone - 10,000 sellers on the marketplace. Even though Walmart marketplace was launched in 2009, it took a while before it started to gain traction. The first time we covered Walmart was in May 2016, when the Walmart marketplace just passed 500 sellers.

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Mar 22, 2017

Fraudsters Are Using Hacked Amazon Seller Accounts to Scam Buyers

We've been covering scam sellers issue for a while now, but lately we noticed a new trend. Instead of opening new accounts, which Amazon has been more proactive about shutting down, they are using old dormant seller accounts.

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Mar 21, 2017

How Vendors Are Funding Amazon's Growth

Retailers like Amazon create cash by buying goods from vendors and selling them to consumers. We recently made Amazon Cash Conversion Cycle public, it was -37.40 last year. What this number means is that after Amazon collected payments from customers it only paid their supplies 37 days later.

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