Alternative Data Intelligence for Amazon Investors
Amazon not only boasts a hugely successful online retail platform but also a thriving digital marketplace which is seamlessly integrated with the main retail shopping experience. In the third quarter of 2021, 56 percent of paid units were sold by third-party sellers.
1P and 3P Amazon sellers
There are many ways of selling on Amazon. Firstly there are first-party (1P) vendor sales, where vendors send their inventory to Amazon, who in turn control the pricing and include “ships from and sold by Amazon.com” on product listings. The benefits of 1P sales on Amazon are wholesale purchases from Amazon, priority selling and brand trust through Amazon’s credibility as a seller. Amazon also permits third-party (3P) sales on its marketplace. Both individuals and professional sellers can sell on Amazon Marketplace. When it comes to order fulfillment, possible options are Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).
Amazon seller revenues
This magic formula has ultimately cashed in for Amazon, which has seen its net revenues multiply in recent years. In 2020, the e-commerce giant generated approximately 80.5 billion dollars in third-party seller services, an increase of nearly 50 percent over the previous year. While these figures are the product of orders throughout the year, a significant chunk is attributable to special offer and discount days.
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