Amazon Releases First-Ever Small Business Impact Report
In an effort to show it’s doing more than just turning the retail community on its collective head, Amazon this week released its first-ever "Small Business Impact Report," which offers an analysis of the more than 1 million U.S.-based small- and medium-sized businesses selling through the platform.
There were plenty of findings from the report, which we’ll dive into. But one of the top-line highlights of the "Small Business Impact Report" has to be just the reach of Amazon’s third party Marketplace. It’s well documented how that platform accounts for roughly half of Amazon’s total sales. But beyond that, small- and medium-sized businesses are coming to the platform in droves. One separate report claims more than 1 million sellers (of all sizes) have joined the platform in the last year. They come from all 50 states and from 130 countries around the world. And more than 20,000 small and medium-sized business around the world saw their sales surpass $1 million through Amazon in 2017.
So, not only are these smaller sellers utilizing the platform, but also they’re realizing actual success.
Last year, according to Amazon, the company invested “billions of dollars” in infrastructure and technical services that it said will help small and medium-sized businesses “reach customers around the world.” That includes everything from technical support on the platform to support on the logistics side of things as well.
"Amazon first invited small businesses to sell on Amazon nearly two decades ago, and today small businesses and entrepreneurs are a vital part of Amazon's continued growth and commitment to customers," Jeff Wilke, CEO Worldwide Consumer at Amazon, said in a statement. "We're excited to share more about these entrepreneurs and their success in our inaugural Amazon Small Business Impact Report."
Other highlights of the report included:
- Amazon estimates that SMBs selling on their platform have created more than 900,000 jobs around the world.
- Amazon lent more than $1 billion to U.S. based SMBs through its Lending Program.
- And half of the items purchased on Amazon come from SMBs.
Top categories for U.S.-based SMBs included the ones you’d expect: health and personal care, home products, electronics, beauty, apparel, sports, and toys.
The report also breaks out the number of small- and medium-sized businesses by state, and identifies what Amazon calls the “most entrepreneurial states.” The top 10, which had the most SMBs per capita, included Washington, Oregon, California, Utah, Colorado, New York, Connecticut, New Jersey, Delaware, and Florida.