Small- and medium-sized U.S.-based sellers averaged more than $160,000 in product sales on Amazon in the year ended May 31, up from about $100,000 during the prior period, the company said in a report released Tuesday. These merchants sold 3.4 billion products during the period, up from 2.7 billion a year earlier.
A periodic disclosure detailing Amazon’s small-business offerings from seller support to cloud-computing software, the report didn’t offer specific explanations for U.S. merchants’ rapid sales gains. But a spokesman said sellers continue to broaden their product offerings and take advantage of tools Amazon built to help reach customers. Amazon, like many online retailers, also was inundated with orders earlier this year from people sheltering at home as the coronavirus pandemic spread.
Amazon’s positioning as a friend of small business may help blunt criticism that the company abuses its market power. Bezos last year used his closely watched letter to shareholders to highlight the success of third-party sellers. And on Tuesday, global consumer chief Jeff Wilke talked up Amazon’s support for small businesses. “Our success depends on their success,” he said.
But critics say Amazon has used its trove of data on merchants to identify best-sellers and then gin up copycat products. The company says use of data from individual sellers isn’t allowed, but the Wall Street Journal reported earlier this year that Amazon teams found a way around the prohibition. Some merchants also say Amazon uses its clout as the world’s largest e-commerce company to charge ever-rising fees to list and advertise on the site.
In addition to the scrutiny from Congress, Amazon faces probes by the U.S. Federal Trade Commission, the European Commission and the state of California, which are all said to be examining the digital marketplace.
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