Amazon’s Third-Party Sellers Had Record-Breaking Sales in 2016


#1

Amazon.com (AMZN, +0.51%) shipped 50 percent more items this holiday season than last for third-party vendors and doubled the amount for 2016 overall, the retail giant said on Wednesday.
The news offers new data points for investors who are hoping Amazon will post a profit for the fourth quarter when it announces results in the coming weeks. Seattle-based Amazon, known for its roller coaster results in years past, has forecast that operating income would range from nothing to $1.25 billion.

Amazon, the world’s largest online retailer, has said the 2016 holiday was its best-ever shopping season. However, high spending on warehouses and video production are expected to drag on profits.
More sellers are paying the company to store, pack and ship their goods through the Fulfillment by Amazon service. Amazon more than doubled the items it delivered for other sellers in 2016 from the year prior to exceed two billion, a spokesman said.

Active sellers using the fulfillment service rose more than 70 percent in the year, Amazon said on Wednesday. It did not specify the total number of vendors.

Third-party sales were “record-breaking” in 2016, Peter Faricy, vice president for Amazon Marketplace, said in the statement. Amazon takes a cut of the proceeds.
Amazon will likely top its profit-margin guidance for the fourth quarter, Morningstar analyst R.J. Hottovy said in a research note last week. Price competition seemed subdued in December and Amazon avoided delivery bottlenecks it experienced in 2015, he said.
Cyber Monday, a shopping spree four days after Thanksgiving, is another indicator. Shoppers ordered more than 28 million items from third-party sellers this year, versus more than 23 million items on Cyber Monday in 2015, Amazon said.

Amazon is building its own fleet of planes to handle the rise in orders and supplement shipping that it contracts out to companies like FedEx Corp and United Parcel Service Inc . Data reviewed by Reuters and interviews with airport officials show that Amazon has loaded these aircraft with big but lightweight boxes, helping it dodge fees from cargo carriers increasingly pricing based on volume rather than weight.
The company does not disclose the revenue it generates from its Fulfillment by Amazon service. Chief Executive Jeff Bezos has said that close to 50 percent of the units purchased on Amazon come from third-party vendors.Clicks on product advertisements paid for by third-party sellers grew 150 percent, Amazon said.


#2

The official press release:

http://phoenix.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2233730

Since outside links usually get removed.

2016 Selling on Amazon Milestones:

Marketplace and FBA

FBA delivered more than 2 billion items worldwide.

Active sellers worldwide using the FBA service grew more than 70 percent.

Outside the U.S., FBA units shipped grew more than 80 percent.

Using the FBA service, Amazon sellers from more than 130 different countries around the world fulfilled orders to customers in 185 countries.

The Seller Fulfilled Prime program added more than 6 million new items that are now Prime eligible across the U.S., U.K., France, Germany and Japan.

Sellers on Amazon that reached $100K in sales grew by 30 percent.

Sellers worldwide have created more than 600,000 new jobs outside of Amazon.

Holiday Season

Sellers worldwide received orders for more than 28 million items on Cyber Monday.

FBA items shipped worldwide grew more than 50 percent year-over-year during the holiday season.

Prime members worldwide ordered millions of items from sellers in the Seller Fulfilled Prime program offering free two-day or next-day shipping.

Sponsored Products

Sponsored Products clicks worldwide grew by more than 150 percent driven by expansion of advertising placements on desktop and mobile sites.

The number of sellers worldwide using Sponsored Products grew more than 100 percent.

Sponsored Products introduced a new and convenient payment method, Unified Billing, which allows Sellers to deduct their advertising spend from sales proceeds.

Category Growth

Amazon Business (www.amazon.com/business) generated more than $1 billion in sales in its first year, with sellers receiving over half of the orders. Amazon Business now serves more than 400,000 business customers in the U.S., and includes more than 45,000 sellers with access to the business-specific selling tools. Amazon Business launched in Germany, marking its first international expansion.

Handmade at Amazon (www.amazon.com/handmade) launched in Germany, France, Italy, Spain and the United Kingdom, expanding its selection of handcrafted artisan-made goods to customers in the EU. In the U.S., the Handmade at Amazon store added six new categories (Accessories, Baby, Toys and Games, Beauty & Grooming, Pet Supplies) and now offers over 500,000 items sold directly by artisans across all 50 states from 80 countries around the world.

Amazon Home Services (www.amazon.com/services), a marketplace for on-demand professional services, expanded to more than 50 U.S. metro areas. Home Services now offers over 1,200 unique services from providers across 60 professions. Customer orders fulfilled by Home Services pros grew more than 200 percent.

Amazon Exclusives (www.amazon.com/exclusives), a store that gives customers direct access to innovative new products from 600 up-and-coming brands, with thousands of unique items being added each month. Sales from the Amazon Exclusives store grew more than 250 percent.

#3

amazon allows chinese counterfeiters to directly ship containerloads directly from china to US fba warehouses.

that’s the reason for the “growth”

I bet US fba sellers didn’t increase at all last year


#4

Not too mention the thousands of orders in which all the buyers got was a fake tracking number. I’m sure they will have record numbers of A to Z claims to foot the bill for as well


closed #5