Teikametrics is a SaaS solution and consulting company with expertise helping third party sellers manage and grow their business at Amazon.com.  I was invited to participate in the webcast and give my insights into trends and strategy in the third party business.  Some of the critical points out of the webinar, which really show important macro dynamics and tactical opportunities highlighted in the webinar include:

Teikametrics

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  • Ecommerce is 10% for generation Z
  • Total ecommerce sales was $350B in 2015
  • Amazon is dominant with an over 50% market share with $0.51 of every ecommerce dollar spent at Amazon
  • Over 50% of all Amazon orders are third party transactions, with over 3 million sellers
  • Amazon Prime is the game changer with over 50M Prime subscribers in US, 25% of US households with a Prime membership
  • Analysts predicting that 50% of US households will have Prime by 2020
  • Amazon investment in logistics is staggering. Amazon has 104 US based fulfillment centers, 20 leased Boeing 767 jets, and 1000 Amazon branded trucks for logistics between sorting centers and logistics centers
  • Prime Now, the 2 hour (or 1 hour) delivery proposition, now in 20 cities, is poised put more fuel on the fire to grow Prime and third party sellers
  • The Flex Program recruits freelance couriers for delivery to homes, an “Uber” model for last model logistics. The Flex Program is available in 14 cities now – expect it to scale quickly
  • Amazon FBA (Fulfillment By Amazon) allow third party sellers to leverage this vast logistics Amazon network and makes your items “Prime” enabled
  • If your items are FBA and Prime enabled, there is no additional costs for items to be delivered in the Prime Now 2 hour delivery

 

Deeper Amazon Marketplace statistics

  • There are 391 million items for sale at Amazon
  • 36 million (<10%) are Prime eligible
  • As stated above, over 50% of orders are sold by third party sellers
  • Demonstrates a growth in third party business on YOY basis – 44% in growth in third party units on Cyber Monday

Deciding to compete against Amazon, or building a core strategy to align with Amazon, is the question brands and retailers have.  What’s obvious, is that you can’t ignore Amazon .

Listen to the webcast HERE