Learn Some Common Behaviors And Selling Habits Of Retailers On Amazon
When you’re in a dog-eat-dog competitive world like ecommerce, understanding the actions and behaviors of your counterparts could make all the difference in the world.
That’s why we’re pretty excited to share with you some of the findings from a 2016 survey conducted by Feedvisor and Web Retailer.
Titled The Selling Habits of 1,500 Amazon Sellers, the survey focuses on the behaviors and habits of retailers on (obviously) Amazon. That makes sense, seeing as Amazon’s net sales in 2015 were well over $107 billion.
We’re guessing you’d like a bigger piece of that pie in 2016 and beyond, right? Then check out these habits from your fellow retailers.
Lo And Behold – The Big Fish Don’t Rule The Tank
It’s easy to assume that the biggest retailers on the planet run the Amazon show. But the statistics suggest something different.
Of the 1,500 sellers surveyed, a whopping 50% of respondents pulled in less than $100,000 per year. In fact, the smallest sampling were retailers with revenues in excess of $1 million – they made up just 9% of respondents. [25% of respondents made $100,000 to $500,000 per year, while 16% made $500,000 to $1 million per year].
Amazon Is Top Dog, But There Are Other Pooches In The Pound
If you’re an ecommerce retailer, then you’re on Amazon. If you’re not, let’s chat. It’s about time you rethink your strategies!
Amazon offers retailers unmatched opportunities to reach the millions upon millions of motivated shoppers who browse the site’s pages daily.
But there are other online sites your fellow retailers rely on for their sales. The goal is to diversify your strategy, without overwhelming your resources. In other words, you want to know which sites will offer you the most bang for your buck.
Your counterparts by and large (73%) turn to eBay as an Amazon alternative. Retailers also turn to Rakuten and Etsy, but Amazon and eBay are the overwhelming favorites.
What And How They Sell
So we know your competitors are on Amazon (if they’re not, stay mum, no reason to rock the boat!). But let’s see how much competition you have.
While Amazon shoppers can find anything and everything on the site, from A to Z (hence the clever logo), home and kitchen items are the most popular. Sixteen percent of respondents fall under that category. The remaining respondents from this 2016 survey fall under the following:
- 11% – Toys & Games
- 9% – Books
- 7% – Health
- 7% – Beauty
An overwhelming percentage of these sellers use FBA for some, or all of their items. In fact, 80% of the respondents admitted using FBA in some fashion.
We find that to be pretty representative of Amazon as a whole. With so many regulations on how sellers must handle shipping, most of our clients find it easier (and safer) to use FBA.
That choice might be a smart one, based on the average profit margin comparison between seller-fulfilled and FBA transactions:
- The seller-fulfilled profit margin ranged from 10% – 25%
- The FBA average profit margin ranged from 25% – 50%
On average, FBA sellers enjoyed a 27% higher profit margin than sellers who fulfill themselves.
Great Stats, So Now What?
Well, if you’re in the ecommerce game (and, by reading this, we’ll assume you are), you know how important market trends and data are to determining your upcoming strategy.
These stats, in particular, give you the opportunity to perform a “system check” on your existing approach.
Perhaps you’ve shied away from FBA, or have been delaying expanding it to more (or all) of your products. Perhaps now is the time to change that?
Or, perhaps you’ve been selling your products on other online marketplaces, but haven’t seen the returns you’re hoping for. Maybe it’s time to invest more in those overlooked sites that your competitors have ignored?
OperationROI specializes in marketplace management to ensure that you see increased profits across all of your marketplace channels, from Amazon to eBay, Rakuten and beyond. We’ll develop a strategy that’ll help you enjoy the best possible return on your investment.
Call us today at 1-888-277-5429 – or fill out our contact form – to learn more about how to make the most out of Amazon and beyond.
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