2020 in figures: Amazon, the king of marketplaces

2020 has been an unpredictable and exceptional year, in which everything has been disrupted by the health situation that we have experienced and that, even today, we continue to experience. Electronic commerce is in a process of enormous growth, being able to affirm that it has been its best year in more than a decade. The pandemic has consolidated a buying and selling trend that had been going strong for years and, currently, we find that 72% of Spanish Internet users between the ages of 16 and 70 buy online.

The purchase itself is not only relevant, it is also necessary to highlight how the search process for a product is carried out. Here the marketplaces are especially important, which are positioned as product search leaders. Up to 70% of online buyers carry out this process on platforms such as Aliexpress, Amazon or Ebay. Of this 70%, 8 out of 10 finally end up buying on the marketplace. In addition, the average satisfaction of online purchases is very high. Because? Prices, comfort, fast and direct delivery to the home, etc.

Worldwide, the biggest beneficiaries have been Etsy, specialized in handmade products and independent sellers, Walmart, the multinational corporation that includes chains of American department stores, and the well-known Amazon.

How has 2020 been for Amazon in figures?

Amazon’s total sales volume in 2020 is estimated to amount to nothing more and nothing less than 475 billion dollars. This amount demonstrates a clear increase compared to the previous two years: 335 billion in 2019 and 277 billion in 2018.

This may not surprise you, but demand for staples like hand sanitizer, towels, masks, toilet paper, and thermometers hit an all-time high on Amazon, to the point where 46 out of 100 search words were related. with the same It should be noted that, during this month and until August, the percentage of negative comments on Amazon increased, mainly due to the logistical problems that the marketplace had to face due to high demand.

What differences are there between sellers with the highest sales volume?

Just 850 sellers were responsible for selling 10% of Amazon’s total volume globally. This figure contrasts with the fact that 38,000 sellers were responsible for 50% and, ultimately, more than 360,000 for 90% of the volume.

One of the main characteristics of the sellers that have had the highest sales volume is the fact that they have been in the Amazon market for many years, which shows that it is an area in which it is interesting to invest in the long term. This fact is not incompatible with the incorporation of new sellers in search of opportunities, since it is not a saturated market and there are numerous niches yet to be explored.

The presence of European Sellers on Amazon

Approximately 7,500 European businesses have managed to exceed the figure of one million dollars in sales through Amazon, highlighting those located in Germany and the United Kingdom, with a total of 3,300 and 3,200 sellers respectively. As for Spain and our neighboring countries, fewer sellers have managed to exceed 6 figures:

  • Spain: 300 sellers
  • France: 300 sellers
  • Italy: 600 vendors

Both the United Kingdom and Germany have the advantage that the weight of their sales is in the national territory, while Spain, Italy and France depend more on foreign customers, who are mainly in the United Kingdom and Germany. In the case of the United Kingdom, it will be necessary to have a longer time perspective to analyze the effect that Brexit will have on sales at the European level. This fact may end up benefiting German businesses.

Number of European sellers on Amazon that exceeded one million sales.

Source: Own elaboration based on Marketplace Pulse (2020)

What about Amazon Spain?

At the beginning of November we were faced with the news that Amazon entered 7,567 million in Spain and already accounted for 15% of all electronic commerce. This places Amazon in first position in the ranking of marketplaces in Spain, followed by Aliexpress, which triples sales, and El Corte Inglés.

The number of new Spanish sellers on Amazon in 2020 amounts to 103,436, representing almost 10% of the total worldwide.

Among the Spanish sellers that are currently on Amazon, the great weight of SMEs stands out, which came to sell more than 40 million products on the platform between June 1, 2019 and May 31, 2020.

The sales of small and medium-sized businesses on Amazon continue to increase, while the company continues to invest in logistics and improvement of its services to give the best possible customer service.

Without a doubt, 2021 will be a year in which these figures continue to rise, especially taking into account the great commitment that Amazon is making to continue promoting its advertising services and even its physical stores.

 

Do you want to start selling on marketplaces but don’t know where to start?

At Década Studio we are aware of the importance for different businesses to be present in the largest online storefronts worldwide. Especially when this presence translates into increased sales, expansion into new markets, minimal infrastructure and operating costs, and much more. This is why we offer our clients comprehensive management of their store in the king of marketplaces: Amazon.

This management covers the entire process to follow to start selling on Amazon, from the creation and configuration of your Amazon Seller account to the maintenance and management of customer messages, and even a feasibility analysis of expanding the business to European markets. . In addition to this, Década Studio offers many more services:

  • Product catalog management: Among the main tasks are: generation of marketing plan and definition of the product catalog for Amazon, inventory management, optimization of product descriptions, ticket handling, comment and review management, image optimization launch of offers and promotions
  • SEO and Advertising on Amazon: Implementation of advertising strategies with Amazon Advertising, promotions, SEO on Amazon, analysis and monitoring reports using Amazon’s own analytical tools.
  • Amazon Stores: creation of your own store on Amazon, organization and design of store information, brand identity and customization of your image, development of the page with your own URL and much more.

Do you want to know more?

Bibliography

CincoDías (2020). Las pymes españolas superan en Amazon los 450 millones en ventas internacionales, un 12,5% más. Disponible en: https://cincodias.elpais.com/cincodias/2020/11/04/companias/1604522987_017702.html

El Economista (2020). Amazon ingresa 7.567 millones en España y acapara ya el 15% de todo el comercio electrónico. Disponible en: https://www.eleconomista.es/empresas-finanzas/noticias/10873336/11/20/Amazon-ingresa-7567-millones-en-Espana-y-acapara-ya-el-15-de-todo-el-comercio-electronico.html

IAB & Elogia (2020). Estudio Anual eCommerce 2020. Disponible en: https://blog.elogia.net/claves-del-estudio-anual-ecommerce-2020-iab-by-elogia

Marketplace Pulse (2020). 7,500 European Sellers on Amazon Exceeded $1 Million in Sales. Disponible en: https://www.marketplacepulse.com/articles/7500-european-sellers-on-amazon-exceeded-1-million

Marketplace Pulse (2020). Marketplaces Year in Review 2020. Disponible en: https://www.marketplacepulse.com/marketplaces-year-in-review-2020