Hundreds of millions of customers shop for products in Amazon’s store. Those products are sold by many sellers, including Amazon Retail and nearly 2 million small and medium-sized businesses that are our third-party selling partners.
We made a bet that bringing selling partners into our store would not only be a win for customers ... but it would also be a win for small businesses ...
Dave Clark, CEO Worldwide Consumer, Amazon
Over 20 years ago, we made the decision to open our store’s virtual shelves to third-party sellers. At the time, big-box retailers had been pushing small businesses out of the retail market. But we made a bet that bringing selling partners into our store would not only be a win for customers who want vast product selection, low prices, and fast delivery, but it would also be a win for small businesses that want to reach more customers, increase their revenue and profits, and create good jobs.
It proved to be a great bet. Today, products from small and medium-sized businesses account for more than half of everything sold in our store.
Our decision kicked off an industry trend that has resulted in small businesses having a range of options when deciding how and where to sell their products. Small businesses now have the opportunity to sell to customers through the sites of major retailers, their own sites, and third-party-only marketplaces, and through the top social media and search services. We know sellers have lots of options, and we work hard to make Amazon the best partner to help drive their success.
Every day, we see our selling partners provide great product selection, low prices, and convenience for customers. That’s why Amazon invested more than $18 billion in selling partner success last year.
These investments included logistics, teams, services, programs, and tools like Brand Follow and Stores that allow sellers to connect their brands directly to millions of customers. Last year, while many other companies passed along the increased costs of doing business during the pandemic through surcharges and fee changes, we absorbed over $5 billion of those costs on behalf of sellers and have continued investing billions more this year to help sellers as we all work toward recovery. These investments help selling partners quickly launch their business on Amazon, scale and reach more customers, and establish and build their brands.
Amazon’s 2021 Small Business Empowerment Report shares more about our investments in seller success and how our selling partners are benefiting as a result
We continue to be inspired by our sellers’ entrepreneurial spirit, resourcefulness, and creativity, especially as we all persevere through the COVID-19 pandemic. The report shows that in one year, U.S. sellers have:
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Sellers have created an estimated 1.8 million U.S.-based jobs.
Our success depends on the success of our selling partners. Amazon and third-party sellers is one of the greatest partnership stories in retail. Together, we make a great team. As always, it’s Day 1 for us as we continue to listen to our selling partners and invent on their behalf.
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