10 Stats That Will Shock Amazon Sellers (Part 1)
Between staying on top of competitors’ prices, managing inventory and shipping, and giving great customer service, your life as an Amazon seller probably doesn’t allow much free time to do research on your market or on Amazon itself.
On top of that, Amazon is known for keeping its sales figures and customer tallies top secret. That means that finding key metrics to drive your decision-making is tough in and of itself. Not to mention that the numbers you dig up may not always be up-to-date.
But that’s okay; we’ve got your back.
We’re always on the lookout for information that will help our clients become even better at running their businesses. With that in mind, we’ve compiled a list of the most important (and most current) Amazon statistics we could find and put them together for you to easily reference whenever you need.
These numbers show just how big and bustling the Amazon Marketplace is. And, they’ll be vital in helping you weigh important decisions that will affect the future of your Amazon store.
In Part 1, we’ll go over stats that paint a picture of the size and reach of the Amazon Marketplace. Then, in Part 2, we’ll delve deeper into consumer spending habits.
Read on to get an idea of the current state of the Amazon Marketplace, and bookmark this page for reference.
1. There are between 244 million and 304 million active accounts on Amazon.
You’re not reading that wrong. There are literally hundreds of millions of people using Amazon to make purchases in every category you can imagine. That means there’s room for almost every Amazon seller to be successful, pending they focus on delivering the right experience to the customer in every interaction.
One way for sellers to free up more time to focus on customer service is by using technology to handle some of the more mundane management tasks, such as repricing and inventory management so they can put their energy into offering more personalized customer service and creating a superior customer experience.
2. There are tens of millions of Amazon Prime members, and that number is growing fast.
Amazon Prime is a premium subscription service that offers its members a variety of perks, including access to Amazon’s online movie and music streaming libraries, and unlimited image storage on Amazon’s cloud storage database for $99 a year.
But the creme de la creme of Prime perks is free expedited shipping that allows Prime members to get their goods in between 0 and 2 days. With people becoming more accustomed to instant gratification, becoming a Prime-eligible seller is clearly in your best interest. According to Business Insider, there are around 54 million Prime members, and that number’s growing faster than you can imagine.
3. The #1 reason that people become Prime members is…wait for it…FREE 2-Day Shipping!
When Amazon Prime members are asked why they choose to pay $99 a year for the service, an overwhelming majority — 78%, to be exact — say that it’s because of the free 2-day shipping. So, if you’re an Amazon seller looking to boost sales, it’s vital that you focus on increasing shipping times to become Prime-eligible. Once you reach this elite seller status, your sales are bound to boost.
4. In 2014, over 2 billion products were sold on Amazon Marketplaces, yet as of 2016, only around 20 million were eligible for Prime status.
If you truly want to succeed on Amazon, becoming a Prime-eligible seller is what your business should focus on. It’s clear that Amazon users want their orders shipped to them fast. And when it comes to choosing a Buy Box winner, Amazon’s algorithm gives preference to sellers that fit in the top tier of shipping times (same-day to 2-day).
But, as of early 2016, less than 1/100th of the items sold on Amazon are Prime-eligible. That means there’s plenty of space within the Amazon Prime market for savvy sellers to fill.
Automation tools like Informed.co repricing software could be the missing link in your business when it comes to record sales and profits because they give you the power to have more control over your prices without having to spend hours doing repricing the old-fashioned, manual way. With that new free time, you can focus more on the human elements of your company to build your brand.
5. The average non-Prime Amazon user spends $625 a year. Prime members may spend twice as much — or more.
When it comes to spending habits, it turns out that Prime members spend a lot more than non-Prime users. The reason? It could be the rush that comes with getting what you want really fast with 2-day (or faster) shipping. Or maybe it’s that seeing the Prime logo next to a wanted item makes it easier to click “Buy Now.”
Whatever the case, a study conducted by Consumer Intelligence Research Partners (CIRP) released in January 2016 found that Prime members spend an average of $1,100 per year, compared to $600 for non-Prime users. Another CIRP study from one year earlier found that Prime members spend $1,500 per year, so it’s fair to assume the true average sales figure falls between $1,100 and $1,500.
Bottom line: Set your sights on Prime eligibility, and your company’s bottom line will get a hefty boost.
Check out Part 2 to see #6–10 and find out more vital stats that every Amazon seller should know. We’ll be talking about users’ buying habits, and you won’t want to miss it!