If you have purchased products on Amazon, chances are that you bought them from a third party seller on Amazon. There are over 1.9 million sellers on Amazon whose products made up 58% of all physical gross merchandise sold in Amazon’s stores in 2018.
These businesses which are mostly small and medium sized basically dropship products for Amazon. The products might be packed by Amazon, but they are initially manufactured or sold by these third party sellers.
To make their job easier and to help them sell more, Amazon has launched 1
“Small and medium-sized businesses are the lifeblood of the economy, and we are committed to empowering them. As part of our dedication to supporting independent retailers, we have thousands of employees around the globe who work hard on their behalf, developing tools and services to help them grow their sales in Amazon’s stores. Ultimately, our success depends on their success,” said Nicholas Denissen, Amazon Vice President of Small Business.
Some of the new tools and services launched include pricing tools, inventory trackers, product branding tools, marketing tools, educational resources, etc.
Here’s a more detailed breakdown on some of the important tools that were launched and how they can help sellers…
Pricing management tools: Amazon has created a pricing management tool for sellers. It automates the pricing, so that sellers can offer great competitive prices to customers without manually having to change them. The pricing management tool also lets sellers set an established price. This ensures that the sellers receive this minimum fare even if the product is sold on Amazon for less.
Analytics tools and business reports: Amazon has a product opportunities dashboard that generates reports based on business analytics. Selling partners can use these reports to figure out purchasing trends and requests for quantity discounts.
Amazon sellers who are using Amazon Business can use the data from the Marketplace Product Opportunities Portal reports to find potential products for their Amazon store.
Amazon Seller University: The Amazon seller university has existed for a while, but it has been redesigned recently to make it easy for businesses to find the information they need quickly and easily.
Amazon also added a new feature in Seller Central. It gives personalized counsel on the features and tools they can experiment with to scale their business. To make it extremely easy for sellers to follow through they have even included videos.
Amazon Appstore Marketplace: The Amazon Appstore recently expanded into Australia, Europe, India and Japan. There are over 200 third party apps in this store. They can help sellers simplify various time consuming tasks like pricing, advertising and inventory management. All these apps are trusted by Amazon and they complement the free tools provided by Amazon.
Fulfilment and Inventory tools: Amazon has also launched a Target Inventory Levels tool for sellers in the U.S., U.K., Italy, France, Spain and Germany. It helps sellers gain better insights into their FBA inventory.
“Based on our recent survey data, we know that greater adoption of digital technology, such as online retail capabilities and tools, could unlock small business job creation and growth to the tune of 360,000 jobs and $140 billion over the next three years with the greatest potential impact on small businesses in rural America with annual revenues under $100,000. To unlock this potential, the Chamber and Amazon share a goal of incentivizing entrepreneurship and enabling small business growth.” said Tim Day, Senior Vice President of the U.S. Chamber’s Technology Engagement Center (C_TEC).
Amazon generated $63.4 billion in Q2 of this year. And the number of small businesses eclipsing $1 million in sales on the site grew by 20 percent last year. Surely with the introduction of these tools more sellers will sell more. Thereby, spurring both the growth of their sellers and Amazon themselves.