Small and medium-sized enterprises (SMEs) have withstood the most difficult times of the COVID-19 crisis, and more than ever, more than ever, more than ever, more than 2 million independent corporations cling to the world’s largest online retailer, Amazon. Unknown to many, SMEs are a vital component of the company’s fiber, more than readers can now. According to Amazon’s 2020 Impact Report on SMEs, US SMEs sold 3.4 billion products at Amazon outlets and an average of 6,500 products sold consistently. SME distributors generated an average of more than $160,000 in sales and the number of distributors that achieved $1 million in sales increased by 20%.
While those figures tell us a lot about SME distributors on Amazon, I think it tells us even more about Amazon’s history, which can be summed up through Amazon Consumer Worldwide CEO Jeff Wilke, saying, “Our good fortune is based on the good fortune [of SMB Distributors].” When Amazon SME dealers succeed in all facets of the business, So does Amazon. I’ve already written here about how Amazon goes with the grain of its distributors, even though it has its own retail brand.
Of course, Amazon is also helping consumers. SMEs enable Amazon consumers of millions of items. SMEs are an essential component of Amazon’s visitor experience.
I’m saying that corporate is perfect, it’s an Array but I think data about SMEs speak for themselves.
Let’s dive.
What does “3.4 billion sold” mean for Amazon?
Despite the COVID-19 crisis, Amazon’s SME distributors effectively sold 3.4 billion products, up from 2.7 billion a year. While it’s fair to say that the $700 million difference comes from the fact that small businesses are moving from retail and online outlets to everything online due to the COVID-19 crisis, I think another statistic in the report has an effect on another. If we stick to Amazon’s investments, in 2019, Amazon has invested $15 billion in logistics, services, tools, systems and others to drive the expansion of its SME distributors. Amazon, like many giant-generation companies, recognizes that the long-term business will be digital.
What do SMEs have to sell on Amazon?
Another testament to Amazon’s history is the facilities and benefits AWS has brought to its consumers to give SMB distributors an edge in the online marketplace. Amazon has provided more than $1 billion in AWS credits since 2019 to help new businesses drive their expansion and development, doubling their 2018 provisions through $500 million. In addition, AWS offers many benefits, adding technical and educational benefits, helping thousands of SMEs. The less difficult it is for small and medium-sized businesses to succeed, the more successful Amazon will be, and Amazon’s $1 billion investment is also paying off. Small and medium-sized businesses promoting in the U.S. store Amazon.com have created about 1.1 million or more jobs, up from 830,000 in 2019.
If Amazon makes it easy to sell SMEs online is compelling, what about Amazon’s preference to create jobs through Amazon Delivery Service spouse corporations? Amazon reported in its SME Impact Report that there are more than 1,000 Amazon delivery service spouses in the U.S. alone, employing more than 82,000 drivers. Among the many difficulties associated with creating an online business (product, service, specific), commissioning and delivery are among the most difficult and expensive.
If Amazon were looking for the workings of its SMEs, I don’t think it would allow other SMEs to fill the package delivery gap. Wouldn’t delivery facilities and fees be something Amazon employees should find out? Most sensible of that, U.S. line service providers. Moving Amazon packages between distribution centers to and from air centers employ more than 13,000 drivers, up from 3,700 in 2018.I think those are wonderful examples of how Amazon isn’t looking for SMEs online. rather, advising them towards a virtual presence and innovation.
Alexa and Kindle are platforms for content creators
I think we can even go back to what Amazon was originally, a bookstore. Part of Amazon has an effect on the report on SME considerations affecting authors, content creators, developers, and IT solution providers.
Over the more than 12 months, Kindle Direct Publishing (KDP) has earned authors more than $319 million and a total of $1.28 billion since the release of Kindle Unlimited. KDP allows authors to publish and distribute books to millions of people around the world. Amazon has an effect on the report also shows that thousands of independent authors have earned more than $50,000, adding more than a thousand and more than $100,000 in royalties. I think it’s amazing that in a world where online video and podcasts dominate the media customer space, books have such a presence.
Alexa, which is also an online shopping tool for consumers, is a platform for SMEs to expand and create experiences of cutting-edge and artistic voice-driven visitors. Amazon says there are now over 700,000 expanders for Alexa and more than 100,000 Alexa capabilities built with Alexa capability kits. Just as Amazon offers SMALL businesses over-delivery facilities through Amazon Delivery Service Partner, Amazon offers SMALL businesses Alexa skill kits to develop on Amazon’s Alexa platform. Similarly, just as Amazon has created a platform for small and medium-sized businesses to have a delivery service, Amazon has created Alexa to have a lot of Alexa devices internationally and in the hands of its visitors. Amazon is bringing back 100,000 smart home products that can be led with Alexa under more than 9,500 exclusive brands.
Package
I think Amazon has an effect on the SME report says a lot about how Amazon affects SMEs in the most positive way, especially in times of crisis. I’m not saying the company is the best in this area. They’re not here. But those figures tell me that Amazon has helped its SME sellers, though contrary to some of the existing and erroneous stories. Amazon has an effect on the SME report that showed me how much Amazon invests in SMEs, from AWS credits to Alexa Skill Kits. It’s a big investment.
Finally, I urge everyone to ask Walmart, Target, Costco and Kroger how many small businesses are, and I think they will be surprised.
You can the full report here.
Note: Jacob Freyman, co-op Moor Insights – Strategy, contributed to this article.
Disclosure: Moor Insights – Strategy, as all study and analysis corporations, provides or has provided studies, analyses, recommendations or paid recommendations to many high-tech corporations in the industry, adding Amazon.com, Advanced Micro Devices, Apstra, ARM Holdings, Aruba Networks, AWS, A-10 Strategies, Bitfusion, Cisco Systems, Dell, DellEMC, Dell Technologies, Diablo Technologies, Digital Optics, Dreamchain , Consortium Gen Z, Glue Networks, GlobalFoundriesArray Google, HPInc ., Hewlett Packard Enterprise, HuaweiTechnologies, IBM, Intel, Interdigital, Jabil Circuit, Konica Minolta, Lattice Semiconductor, Lenovo, Linux Foundation, MACOM (Applied Micro), MapBox, Mavenir, Mesosphere, Microsoft, National Instruments, NetApp, NOKIA, Nortek , NVIDIA, ON Semiconductor, ONUG, OpenStack Foundation, Oracle, Panasas, Peraso, Pixelworks, Plume Design, Portworx, Pure Storage, Qualcomm, RackArray Samsung Electronics, Silver PeakArray , Stratus Technologies, Symantec, Synaptics, Syniverse, TensTorrent, Tobii Technology, Twitter, Unity Technologies, Verizon Communications, Vidyo, Wave Computing, Wellsmith, Xilinx, Zebra, which can be cited in this article.
Patrick ranked No. 1 among 8,000 analysts in ARInsights Power’s 100-00 rating and the top number one cited analyst according to Apollo Research. Patrick founded Moor