The Most Shocking Stats From Amazon’s 2021 Small Enterprise Empowerment Report – Forbes

Yesterday, Amazon launched its annual report into the actions and advances of small companies on its platform: the 2021 Small Enterprise Empowerment Report. Titled the “SMB Affect Report” in previous years, it tracks metrics like general gross sales quantity from third occasion retailers, spruiks new initiatives that Amazon has launched, and gives snippets of perception into the retail behemoth’s priorities over the previous yr inside the third occasion market division. 
In typical Amazon model, the info factors don’t at all times match up like-for-like every year. For instance, Amazon has outlined its whole universe of SMB’s (small to mid-sized companies) otherwise prior to now 3 years. 
In 2019, a complete universe of 1.9 million SMBs was recognized within the U.S., not simply together with Amazon sellers but additionally content material creators (authors utilizing Kindle, for instance), and builders (startups utilizing AWS). In 2020’s report, a universe of over 2 million U.S. SMBs was recognized, this time outlined as ”unbiased sellers, authors, content material creators, supply suppliers, builders and IT resolution suppliers within the U.S.” In 2021’s report, Amazon has narrowed the main focus to Amazon sellers, of which there are actually practically 2 million. 
The very definition of ‘SMB’ bears clarifying, as it’s fairly expansive. Amazon makes use of Gartner’s definition of Small to Medium Enterprise: companies with lower than $1BN in annual revenues and as much as 999 staff. 
These specifics apart, the report presents attention-grabbing insights for manufacturers, retailers, and business pundits. Listed below are a few of the most stunning statistics from this yr’s report. 
Amazon’s 2021 Small Enterprise Empowerment Report shares statistics on its third occasion market … [+] sellers. (Picture by DENIS CHARLET / AFP) (Picture by DENIS CHARLET/AFP by way of Getty Photographs)
There are practically 2 million SMB sellers promoting on Amazon’s marketplaces around the globe. 
Of this, there are greater than 500,000 sellers are based mostly in america. 
For manufacturers promoting on Amazon who expertise the panorama as changing into extra aggressive yearly, you’re not simply imagining it. In 2020, Amazon added 200,000 new sellers from around the globe, a forty five% enhance on the prior yr (2019). 
However even within the face of extra worldwide entrants, US sellers are rising their enterprise general. For the interval of September  2020 to August 2021, American sellers on the platform averaged $200,000 in gross sales.  That is up from $175,000 within the prior 12 month interval.  
There are additionally extra high-volume sellers. The variety of US sellers who surpassed $1M in gross sales grew by practically 15%, and the variety of US sellers that surpassed $10M in gross sales elevated practically 40% over the prior interval. 
Amazon says that half of American third occasion sellers reap the benefits of FBA. This implies 250,000 US sellers are utilizing FBA. The statistic that Amazon doesn’t share right here is the quantity or proportion of worldwide sellers, for instance sellers positioned in China, who’re utilizing FBA. 
Amazon did present worldwide FBA utilization in its 2020 report nonetheless, stating that greater than 450,000 worldwide SMB sellers on (the US website) took benefit of Achievement by Amazon. Amazon correlates utilization of FBA with a gross sales enhance of 34% amongst this cohort. 
This yr, Amazon has aggressively grown the capability of FBA, rising sq. footage throughout its worldwide community of distribution facilities by 50% worldwide. It additionally employed 450,000 new staff to broaden capability. 
Amazon says that on common, delivery with FBA is greater than 30% decrease in value in contrast with different delivery carriers. It’s inarguable that 30% decrease prices on success is a good deal, and one that may appeal to many SMB’s to this system. However when the entry to that success service is abruptly paused or throttled, it may depart these SMBs out within the chilly.   
In 2020, Amazon de-prioritized the success of non-essential gadgets in the course of the top of the pandemic, which means that many sellers couldn’t really promote their stock. And in 2021, I wrote how Amazon throttled the storage capability for a lot of sellers because it modified the parameters for stock storage limits for retailers.    
440,000 manufacturers are enrolled in Amazon Model registry, a program that’s accessible solely to retailers who personal their very own trademark. Model Registry permits manufacturers to entry a bigger suite of selling instruments like enhanced product content material capabilities and extra subtle promoting marketing campaign varieties. 
Inside this subset of brand-registered sellers:

Well being Ade retailer on, a function that may be constructed by brand-registered sellers. Buyers … [+] can even “comply with” a model from this web page.
Amazon additionally highlighted a number of new advertising capabilities for sellers which are ramping up. 
“Model Observe” is a comparatively new program that enables Amazon customers to ‘comply with’ favourite manufacturers on Amazon, very similar to on social media platforms. The evolution of this program sprang from Amazon Posts which launched in late 2019. In yesterday’s report, Amazon says that model followers spend greater than double what common customers do. This statistic behooves manufacturers to develop their playbook round Model Observe. 
In 2021, Amazon additionally launched the Model Referral Bonus program, offering manufacturers a rebate of as much as 10% from gross sales of their merchandise, once they ship exterior visitors to their Amazon product pages. No knowledge factors had been offered within the report on the quantity of bonuses paid out below this program or the variety of sellers enrolled. 
Lastly, Amazon Discover is a brand new program that enables small enterprise sellers to host clients at their bodily premises for occasions. 
Curiously, the report didn’t point out any statistics in regards to the utilization of Amazon promoting by its SMB cohort. Promoting is a major and rising revenue heart for Amazon, and holds the mantle of the third largest promoting platform after Google GOOG and Fb. In my expertise operating an Amazon company for this very section, each single shopper is leveraging Amazon Promoting to develop their companies. As a key device in a vendor’s toolkit, its absence on this roundup is stunning.