Jeffrey Bezos, CEO of Amazon, yesterday shared the annual letter to
share owners where he has shown the share of physical gross merchandise sales sold on Amazon by independent third-party sellers, a percentage that reached 58% in 2018.
Here the numbers:
|Year||3rd Party Sellers share|
Jeff Bezos says independent third-party sellers are mostly small- and medium-sized businesses that are “kicking Amazon’s first-party butt. Badly”
First-party business has grown from $1.6 billion in 1999 to $117 billion in 2018. In that same time, third-party sales have grown from $0.1 billion to $160 billion.
Amazon compares it’s business to eBay and says that third-party sellers were able to grow with Amazon due to the tools Amazon provides: helping sellers manage inventory, process payments, track shipments, create reports, and sell across borders.
This month Amazon announced the introduction of a minimum sales fee in Europe and changes on seller fees.