"Successful people do what unsuccessful people are not willing to do. Don't wish it were easier; wish you were better.”

- Jim Rohn

Amazon has firmly established itself as a global e-commerce giant, capturing the attention of shoppers and sellers alike.

Often called "the Everything Store," Amazon now offers a vast range of products and services, from retail goods and delivery to advertising, electronics, digital services, and media. What began as an online bookstore has since evolved into the world’s largest online retailer. And in 2024, Amazon's growth shows no signs of slowing down.

As Amazon continues to shape the future of e-commerce, staying informed about the latest statistics is essential for both sellers and marketers.

This article explores the most up-to-date sales figures, revenue trends, seller insights, and user demographics to provide a detailed look at Amazon's performance and its implications for the future of online business.

If you're an Amazon seller or planning to become one, here are some key statistics.cs you need to know:

Amazon holds the largest share of the e-commerce market, dominating online sales in the U.S.

With a staggering 37.6% of the total market share in 2023, Amazon is by far the leading player in the digital retail space. This dominance is far ahead of its closest competitors, which include:

• Walmart, with a 6.4% share,

• Apple, capturing 3.6%,

• eBay, which holds 3%, and

• Target, at 1.9%.

These figures highlight Amazon's immense reach and influence in the online marketplace, underscoring its unrivaled position as the go-to platform for consumers and sellers alike. As the primary driver of e-commerce growth, Amazon’s share continues to expand, with no other platform coming close to its scale and market penetration. For sellers looking to maximize their online sales, Amazon’s massive market presence makes it an essential platform to tap into.

Amazon generates an average of $1.6 billion in daily sales revenue, a staggering figure that reflects its immense scale.

In 2023, Amazon's total annual revenue reached a record-breaking $575 billion, marking a significant increase from $514 billion in the previous year. When broken down across the 365 days of the year, this equates to nearly $1.6 billion in sales every single day.

This impressive revenue stream is a testament to Amazon's dominance in multiple sectors, including e-commerce, cloud computing (through AWS), and its growing advertising business. With such a large daily revenue figure, Amazon not only sustains its global leadership in e-commerce but also continues to expand into new markets and industries, reinforcing its position as a key player in the digital economy. For sellers on the platform, this daily sales figure underscores the vast potential for growth and opportunity that Amazon provides.

Amazon is the top destination for product searches, with 56% of consumers beginning their shopping journey directly on the platform.

Search engines like Google account for 42% of product searches, while Walmart follows with 29%. Other platforms like YouTube and Facebook have even smaller shares, at 13% and 10%, respectively.

This dominance highlights Amazon's central role in shaping consumer shopping behavior, with many buyers turning to the platform first when looking to purchase products. For sellers, this statistic underscores the importance of having a strong presence on Amazon, as it not only competes with other online retailers but is the first place most consumers go when they’re ready to buy.

Independent sellers are the backbone of Amazon's marketplace, accounting for the majority of the platform's sales.

In fact, over 60% of all sales on Amazon are generated by third-party sellers, many of whom are small to medium-sized businesses. These sellers leverage Amazon's vast global reach and infrastructure to sell their products to millions of consumers.

On average, independent sellers on Amazon earn more than $250,000 annually, demonstrating the platform's potential for entrepreneurs and businesses to grow. This success is largely driven by Amazon's robust support systems, including fulfillment services like FBA (Fulfillment by Amazon), which enable sellers to scale operations efficiently. The fact that third-party sellers make up such a significant portion of Amazon’s total sales highlights the immense opportunities available for those willing to tap into Amazon's ecosystem. For aspiring entrepreneurs, it reinforces the potential to build a thriving business with the right product and strategy.

The vast majority of Amazon sellers are third-party (3P) sellers.

These sellers operate through Amazon's Seller Central platform, where they list, manage, and sell products directly to consumers.

In contrast, first-party (1P) sellers, who make up the remaining percentage, are vendors that sell directly to Amazon itself. They use Vendor Central, where they essentially become suppliers to Amazon, which then resells the products to customers.

The dominance of third-party sellers highlights Amazon's role as a vast marketplace that empowers independent entrepreneurs and businesses. This model has given rise to a diverse range of sellers, from small startups to established brands, all using Amazon’s platform to reach global audiences. For 3P sellers, this also means they have the flexibility to manage their businesses on their own terms, including pricing, inventory, and fulfillment strategies.

Selling on Amazon can quickly become profitable for many entrepreneurs.

Research shows that 58% of Amazon sellers begin turning a profit within their first year of operation. This quick turnaround is one of the appealing aspects of selling on Amazon, as it allows sellers to see tangible results relatively fast compared to other business models.

Moreover, a significant portion of small business sellers achieves notable success. About 19% of these sellers surpass $10,000 in average monthly sales, demonstrating that Amazon's marketplace provides opportunities for growth, even for newer businesses. This success is often attributed to Amazon's large customer base, powerful sales tools, and streamlined logistics through programs like FBA (Fulfillment by Amazon), which allow sellers to focus more on their products and marketing while Amazon handles the logistics.

These statistics underscore Amazon's potential as a platform that not only allows businesses to start quickly but also scale at an impressive pace, provided they have the right products, strategies, and marketing.

Last year, third-party sellers in the U.S. collectively sold over 4.5 billion products on Amazon, averaging an astounding 8,600 products every minute.

This incredible volume highlights the sheer scale of commerce on the platform and the significant role that independent sellers play in Amazon's overall success.

The rapid pace at which products are sold reflects not only the size of Amazon’s customer base but also the effectiveness of its marketplace for connecting sellers with millions of potential buyers. Whether through Amazon's FBA (Fulfillment by Amazon) program, strategic product listings, or leveraging tools like sponsored Products ads, third-party sellers can tap into the vast potential of the platform.

This statistic also underscores the competitiveness of the marketplace. Sellers need to ensure they have optimized product listings, competitive pricing, and strong customer service to stay ahead in a marketplace where millions of products are moving every minute.

A staggering 82% of Amazon sellers opt for Fulfillment by Amazon (FBA) as their primary fulfillment method.

This highlights the platform's robust and efficient infrastructure that allows sellers to store, pack, and ship their products through Amazon’s vast network of fulfillment centers. By choosing FBA, sellers can take advantage of Amazon's reputation for fast and reliable shipping, as well as access to Prime members, which significantly boosts product visibility and sales potential. FBA also frees sellers from handling day-to-day logistics, enabling them to focus on other aspects of their business such as product sourcing and marketing.

Furthermore, 54% of Amazon sellers create their own brand and product lines using the private label model. This involves sourcing generic products from manufacturers, customizing them, and branding them with their own label before selling them on Amazon. This approach allows sellers to control pricing, build brand identity, and carve out a niche in the competitive Amazon marketplace. Together, FBA and private labeling provide sellers with powerful tools to scale their businesses and reach millions of customers worldwide, with minimal upfront investment in warehousing and distribution.

These statistics show how FBA and private label strategies complement each other, making it easier for sellers to offer high-quality, branded products while leveraging Amazon's fulfillment expertise to reach more customers efficiently.

The Home & Kitchen category stands out as the top choice for small and medium-sized business (SMB) sellers on Amazon, with 35% of them focusing on this area.

This popularity can be attributed to several factors: the relatively straightforward manufacturing processes for many home and kitchen products, their resilience during shipping, and fewer regulatory restrictions compared to other categories. These products tend to be durable, which reduces the risk of returns due to damage, making them an attractive option for sellers.

Following Home & Kitchen, the next most popular categories among SMB sellers are:

• Beauty and Personal Care (26%): This category appeals to sellers because of its constant demand, wide variety of products, and relatively low barrier to entry for new brands.

• Clothing, Shoes, & Jewelry (20%): Apparel and accessories are also lucrative for many sellers, offering a broad market and opportunities for customization and branding.

Interestingly, appliances is the most sought-after category for enterprise-level sellers. This might be due to the higher profit margins, larger average order values, and the specialized nature of these products, which often require more substantial inventory management and fulfillment capabilities.

The trend in these categories reflects a broader market demand, with Home & Kitchen products leading the way for SMBs due to their practicality and cost-effectiveness. Sellers in these categories benefit from the growing interest in home improvement, comfort, and personal wellness, which continue to drive consumer spending. For sellers looking to scale quickly and efficiently, Home & Kitchen offers a solid foundation, particularly when paired with effective inventory management and a clear understanding of customer preferences.

Amazon Prime continues to see impressive growth.

As per Statista, the number of Amazon Prime members in the U.S. is expected to surpass 180 million by 2024. This reflects the ongoing popularity and expansion of the Prime membership program, which has become a staple in the e-commerce world.

Supporting this growth, our own data shows that 80% of U.S. consumers now expect free shipping for orders over a specific threshold. This underscores the importance of free, fast shipping as a key driver of customer satisfaction and loyalty. Additionally, 52% of consumers have access to an Amazon Prime account, highlighting how widespread the service has become, not only for its shipping benefits but also for the streaming and exclusive deals it offers.

The continued rise in Amazon Prime memberships has a significant impact on sellers. As more consumers join, there’s an increasing opportunity for sellers to tap into a loyal and engaged customer base. Prime members tend to make more frequent purchases and often seek out products that offer free two-day shipping, making it crucial for sellers to have their products available through Amazon FBA (Fulfillment by Amazon) to meet this demand. For sellers, aligning with Amazon Prime’s benefits and growing subscriber base offers a competitive edge in a market that increasingly prioritizes speed and convenience in shopping experiences.

Almost 70% of consumers are preparing to shop during Amazon Prime Day.

In line with the massive appeal of Amazon Prime, it’s estimated that nearly 70% of consumers plan to take part in Amazon Prime Day, Amazon's annual sales event. In 2023, Prime Day saw a record-breaking 375 million items sold over the course of just two days, highlighting the immense scale and influence of this event on both consumers and sellers. The first day of Prime Day, July 11, marked a milestone, becoming the largest sales day in Amazon’s history—a testament to the growing consumer interest and the effectiveness of this highly anticipated sales event.

For sellers, Prime Day represents a significant opportunity to boost sales and visibility. With millions of shoppers flocking to Amazon for exclusive deals, the event provides an unparalleled platform for both new and established sellers to showcase their products. The sheer volume of consumer spending makes it a crucial time for businesses to optimize their listings, launch promotions, and ensure they have enough stock to meet the surge in demand.

Given the popularity of Prime Day, it’s also worth noting that consumers are not only looking for discounts but are also more likely to engage with products that offer fast, free shipping—again making Amazon’s FBA (Fulfillment by Amazon) a key factor in success.

As of the first quarter of 2024, Amazon employs over 1.5 million people across the globe.

Amazon’s workforce continues to showcase its global influence with over 1.5 million employees in Q1 2024. This impressive figure doesn't even take into account the many seasonal or temporary workers Amazon hires, particularly during peak shopping periods like Prime Day or the holiday season, when the demand for labor is significantly higher.

However, it’s important to note that this number marks a slight decrease from the 1.62 million employees Amazon reported at its peak in 2022. This reduction may reflect a strategic shift in Amazon’s operations, as the company adjusts to market conditions and optimizes its workforce to align with its evolving business needs. Despite this decline, Amazon remains one of the largest employers in the world, and its workforce growth has been pivotal in driving its expansion into new markets and services.

The company’s workforce spans various sectors, including warehousing, logistics, technology, customer service, and advertising. This diverse range of roles allows Amazon to maintain its status as a dominant force in ecommerce, cloud computing, and digital services. For sellers, this vast infrastructure means reliable fulfillment and customer support, all of which contribute to the seamless shopping experience Amazon is known for.

Amazon Advertising generated $46.9 billion in revenue last year.

In 2022, Amazon’s advertising revenue soared, increasing by 20% from the previous year, bringing in a total of $46.9 billion. This marks a significant rise, more than doubling the amount Amazon earned from advertising in 2020. This growth highlights the increasing importance of Amazon's advertising platform in driving its overall revenue, as more businesses tap into the power of Amazon's search and display ads to reach a highly targeted audience of online shoppers.

While Amazon’s advertising revenue continues to grow at an impressive rate, it still lags behind Google and Meta in the overall digital advertising landscape. Google leads the charge with $237.9 billion, followed by Meta at $131.9 billion. Despite this, Amazon’s advertising growth is notable because it leverages its immense customer data and shopping behavior insights to offer advertisers a direct path to high-intent buyers. This makes it an attractive platform for businesses looking to increase their visibility and sales on the Amazon marketplace and beyond.

Final Thoughts

Amazon's dominance in the eCommerce world is undeniable, and its impressive statistics continue to make waves. As the leader in the online retail space, Amazon offers third-party sellers a unique opportunity to tap into its vast marketplace and grow their businesses.

Want to be a part of these incredible stats and build a successful Amazon business of your own?

AMZ Shifu can help you get started and scale efficiently with personalized strategies for success.

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Book a call with us today and start your journey towards becoming a part of Amazon's eCommerce success story!