10 Eye-Opening Amazon eCommerce Facts to Know in 2021
The past year was a time of learning and adapting. The COVID-19 pandemic took us all by surprise, and many of us found ourselves working from home and quarantined from the world. It was a year of a slowing economy for many industries with a few unexpected industry winners: food delivery services, online retailers like the Amazon eCommerce platform, home gym suppliers, office equipment, and streaming services.
The eCommerce industry was already doing well before the pandemic; however, sheltering in place left many Americans at home with nowhere to go. Many brick and mortar stores closed, which left many of us even more of an opportunity to shop online. Any business that could sell their items online had to do so quickly to keep afloat somehow.
Amazon sales skyrocketed as the company reported third-quarter earnings in 2020 at a whopping 37% increase compared to the same period the year before. The tech giant ended the year as the #2 retailer behind Walmart. Communities often saw Amazon Prime delivery vans, and many people stuck at home left out delivery goodies for the drivers that they saw nearly every day.
As the pandemic continues to slog along, the Amazon eCommerce market will expectedly keep dominating. Those who have jumped on the Amazon bandwagon with their investment strategy have seen the past year’s benefits. Check out these ten eye-opening Amazon eCommerce facts to know in 2021.
1. Amazon has 47% of the eCommerce Market.
Amazon is undoubtedly a household name, but this statistic shows its incredible power and dominance in the eCommerce industry. Add in new programs like Amazon Fresh, where consumers can purchase perishable grocery items, and the tech giant is only going to increase their overall share of the eCommerce market.
2. There are 150 Million Amazon Prime Subscribers.
Consumers not only get free shipping with their Amazon subscription, but they also have access to plenty of Prime benefits. Of these 150 million prime members, over 100 million of them spend over $1,000 a year on the platform. The ease and ability to use Prime shipping only increases a consumer’s overall spending.
3. The Electronics Category is King.
44% of Amazon shoppers in the United States have purchased electronics from Amazon. This fact makes sense given that it’s not uncommon to see many homeowners with a Ring system exclusively from Amazon.
Add to that the power of the Amazon Echo, Kindle, and Alexa, and the company is entering households in various ways. All of these products are great by themselves and do stand alone. Still, Amazon will continue to connect them and launch new products that seamlessly integrate with those items that you likely already have in your home.
4. Over 67% of Users Prefer Shopping via Desktop.
While mobile devices are prevalent in our society, most Amazon shoppers prefer to use their desktop or laptop to shop. Larger screens increase the need for better photos and interactive videos to sell the products, including Amazon’s live selling service with hosts that showcase and explain products sold on Amazon.
5. There Are 4,000 Smaller Items Sold Every Minute.
It is not uncommon for many of us to add a small or medium-sized item to our Amazon cart daily. In the past, shoppers have had to make a trip to a store to look for small items, whereas now they just add them to virtual carts. These smaller items usually cost less than larger ones, but they also have a much higher sales volume.
6. 54% of Brands Are Sold on Amazon.
Amazon has proven its ability to succeed when it comes to selling products online. Predictions show that 72% of brands will be available on Amazon in the next five years. A wide variety of sellers, those that sell Amazon their products wholesale and those that sell products via a third party, are set to grow their brands and find new customers by selling on Amazon.
7. Six-Figure Sales Are Not Uncommon.
The Amazon marketplace is a wide-open field of opportunity for sellers and investors alike. Over 200,000 sellers took in more than $100,000 in sales as the company has grown. As Amazon tightens up seller requirements, sellers may have a more challenging time going at it alone. Using an Amazon store management service like NextGen Strategic Investments to set up and operate your Amazon store takes all of the guesswork out of selling so you can focus on building profitability.
8. Nine Out of Ten Shoppers Price Check on Amazon.
While many shoppers do end up purchasing on Amazon, the platform has become known for its price checking abilities. Shoppers often pull up their Amazon app while in stores to see if a lower price is available online. Consumers use the site to check out other options and varieties of a product and don’t mind waiting a few days to get it delivered to their door.
9. Amazon Has More Products Than You Think.
As a website that started out selling only books, Amazon has morphed into a tech giant with its hand in over 128 other acquisitions or investments. It seems that Amazon is everywhere, and they have been smart about their mergers and acquisitions in recent years.
The purchase of Zappos and Whole Foods Market have been considerable assets to the company to help it continue expanding. The company expects to continue to grow and diversify its products and services to reach new markets in 2021.
10. 23% of Consumers Find Inspiration on Amazon.
When buyers need help finding the right kind of product, they have many options to choose from online. 23% of these buyers go to Amazon to find inspiration for products when they aren’t sure of what they need. Price points and pictures often persuade these window shoppers to purchase when on the platform.
How to Start Your Own Amazon Store
The Amazon eCommerce industry is booming – and for many savvy entrepreneurs, it’s a lucrative opportunity to make passive income. But, how exactly does one even get started? There are different routes that you can go when opening an Amazon store. However, if you’re looking for a proven, hands-free method of earning passive income with minimum work, consider having an Amazon management service like NextGen create and operate an automated Amazon store for you.
Our experienced team at NextGen sets up your store and considers Amazon’s constantly changing rules and regulations. Plus, we handle your LLC formation and apply for your tax exemptions in all 50 states. Our team finds the most profitable products to list on your store through research and analysis, and we manage the store’s operations to ensure that it stays profitable.
Ready to get started? Contact us today to learn more about the process and how you can begin earning passive income through an automated dropshipping Amazon store.