I’m just going to leave this here…
That’s a lot of zeros.
Here’s that number written out.
$3,500,000,000
If every one of Amazon’s 2.5 million active sellers split that revenue evenly…
That would be…
One Thousand Four Hundred Dollars TO EVERY AMAZON SELLER IN ONE DAY.
But obviously, earnings are not distributed evenly.
This isn’t a ponzi scheme.
Let’s talk about the Key Points from the article, because those are even CRAZIER.
Key Point #1 - Amazon sellers increased their sales on prime day 60% from last year…
This is even crazier than it seems for a few reasons.
A) Prime day got rescheduled like 5 times this year. No one knew when it was happening, and there wasn’t even 1/4 of the same amount of marketing that Amazon normally does for it.
B) 60% is a big number for one year. Growing ANY part of ANY business by 60% in a year would be a record for the majority of businesses in the World.
So what caused this?
* COVID COVID COVID. If your grandma wasn’t shopping on Amazon before this? She is now. And she’s not going to stop.
* The Amazon Brand becoming bigger than any other in the online World. Prime day really accentuates this dominance. What other business is able to create their own “Holiday” out of thin air, and generate this type of revenue from it? (hint, it’s the only business that can dominate 50%+ of online retail sales in the US.)
Key Point #2 - Third party sellers sales grew MORE than AMAZON’S sales.
This is where it gets really funny.
Here are the things we know to be true, right?
1) Amazon is dominating the World.
2) Everyone is shopping on Amazon.
3) COVID sped that all up, and DRASTICALLY.
Now, read that key point above again..
And go ahead and dig a grave for everyone who has said…
“Selling on Amazon is a scam”.
“Selling on Amazon isn’t a real way to make money”.
Seriously, dig them a nice deep grave because those opinions need to be buried and sealed up forever.
Here’s the truth.
AMAZON WOULD BE NOTHING WITHOUT THIRD PARTY SELLERS.
They literally said it themselves in the press release quoted above!
Here, I’ll be an Amazon spokesperson for a second ready?!
I’m on my podium!
Press release time! :)
“Hello everyone we would just like to let you know that we’ve won. We are dominant. You all are using us and you are going to keep using us. HAHAHAHA. HA.
“Also, side note, our third party sellers sales are going up faster than our own.”
“Have a nice day!”
THAT’S LITERALLY WHAT AMAZON IS SAYING IN IT’S OWN PRESS RELEASES! (although maybe not with my awesome lingo)
I just wanted to write you this letter today for one reason and one reason ONLY.
BE ENCOURAGED.
Amazon literally CAN’T AFFORD to stop supporting 3rd party sellers! They need them desperately as they are growing even faster than Amazon’s OWN BRANDS!
They NEED YOU and ME and TAYLOR to keep providing VALUE to their marketplace.
There is no way in hell, at least for the foreseeable future, that Amazon can provide the WEALTH and DIVERSITY of products that make Amazon GREAT, UNLESS they keep cultivating awesome sellers like you and me.
And when a company as massive as Amazon LITERALLY NEEDS you and me?
There’s a big opportunity for us to take OUR SLICE of their 2 TRILLION DOLLAR business….
Until tomorrow.
Yours truly.
Kale
