Interesting Facts (And a Warning) About Amazon

Interesting Facts About Amazon

  1.  Amazon is now the world’s largest e-commerce platform with over 200 million visitors per month.
  2.  Almost 1/2 of those 200 million visitors are Prime Members who pay for membership. Amazon just raised their Prime cost to $119.95 per year.
  3. Prime members get 2nd-day air, free shipping on everything they buy plus other benefits such as free movies and music.
  4.  Amazon is moving towards same-day shipping for Prime members in the top 25 metropolitan areas (This will cover over 60% of the American population).
  5.  Prime Members spend over $110 Billion/year on Amazon
  6.  Over 50 million people per day use Amazon to research products and to examine product reviews before buying a product (online or offline).
  7. One of the biggest complaints by retailers is Amazon buyers who bring their smartphones into stores and use them to shop on Amazon right in front of store owners and employees.  If they are a Prime member they know they will get their product quickly, and Amazon usually (but not always) has a lower price. (Besides, if you are buying something large and heavy, such as stand mixer or microwave oven, you don’t have to lug it around while you are shopping.
  8. Amazon is on a major push to recruit major brands to the site which eliminates small sellers such as you and me from reselling them.
  9. Although Amazon gets over 50% of their sales from 3rd-party independent sellers, they continue to find ways to compete with independent sellers and drive them away from the site.  I suspect this effort will reach critical mass within 4 to 5 years and then Amazon will go the way of eBay.  Until then, keep ringing up those sales.
  10. This means sellers should start looking at other channels to sell on in the longer term.

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  1. The Prime membership went up to $119.99 in June 2018.

    “Starting June 16, 2018, existing Prime members with an annual membership will renew at a rate of $119/year. Prime Student members with an annual membership will renew at a rate of $59/year. Monthly Prime members continue to pay $12.99 per month. Monthly Prime Student members continue to pay $6.49 per month.”

    1. Author

      Thank you for the information. I obviously hadn’t been keeping up.

  2. #2: Prime is $99 / YEAR. Not month.

    1. Author

      That was a typo. Actually with the latest price increase, PRIME is now $119.95 per year

    2. Author

      You are correct – that was a blatant typo on my part.

  3. What I meant was what other channels would you recommend?

    1. Author

      I would look at eBay, Wal-Mart and Rakuten

  4. Eventually Amazon will force out small sellers just like EBay has done. It’s all about the bottom line. Either swim with the big fish or go to a smaller pond. Sad commentary on online selling.

  5. Amazon in the last 6 months has started stocking their own sales listing on 4 of my best sellers, wipping out all my sales on those items.

    1. Author

      That happens to all of us.

      1. I recall you saying, I think, you no longer sell on EBay?
        What future channnels should we look at?

        1. Author

          I am currently looking at Wal-Mart and expanding my own web site with Shopify.

          1. Author

            Good idea Becky – I am still trying to figure out my multi channel strategy.

        2. Author

          I am looking at ETSY & Shopify

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