Amazon's Online Money Earning Service

16-08-2021

Amazon's Online Money Earning Service

Final Thoughts About Working for Amazon Online. You don’t need to drive a delivery truck or hang out in an Amazon warehouse to earn money through Amazon. There are plenty of remote opportunities and online positions you can do as an independent contractor or a full-time employee.

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Amazon is, without a doubt, the trailblazer of the eCommerce industry. In recent years, the company has seen a monumental shift, driving the online retail industry to incredible heights. Amazon statistics have shown that the company’s disruptive force has radically changed the dynamics of the whole eCommerce ecosystem. Even with the postponement of Prime Day to October in 2020, Amazon still amassed record sales for its products, cloud services, and even ramped up hiring in the midst of the COVID-19 pandemic.

This is to mean, if you are pursuing eCommerce excellence, Amazon should be your benchmark. In other words, you need to train your sight on the Amazon business model. With that said, getting down to the nitty-gritty of Amazon can be a high starting point. Understanding the details behind Amazon’s trajectory, and using reliable eCommerce solutions, can help you scale the heights of eCommerce with ease.

To help you out, we’ve compiled all the statistics you need to know about Amazon. These figures will make you intimately familiar with Amazon and illuminate your path to success. Notably, having these stats at your fingertips will help you to not only run targeted marketing campaigns but also make smarter decisions and keep pace with global eCommerce titans.

Amazon Statistics Table of Contents

1. General Amazon Statistics

In recent years, Amazon has made gigantic strides to become only the second $1 trillion business, after Apple. The company has distinctively managed to stay abreast of changes in the eCommerce industry, bulldozing its way to the crest. Notably, Amazon has been at the fore of the endless shifts in attitude, demographics, technological advancements, and customer preferences. As a result, the firm has maintained a constant upward trajectory, reaching heights never before imagined. The Amazon case study is an open book to brands and retailers, and there is plenty to learn from the growth of this lucrative firm.

The Increasing Amazon Market Size:

Amazon saw a boost in revenue of 35% in the first three quarters of 2020. (Forbes, 2021)
Interestingly, in Q3 of 2020, Amazon announced an increase in 37% of net sales, hitting $96.1 billion in revenue. (Amazon, 2020)
Besides, in the most recent years, Amazon has recorded steady growth in net revenue. To illustrate, 2016 ($135 billion), 2017 ($177 billion), 2018 ($232 billion), and 2019 ($280.52 billion). (Amazon, 2021)
As of July 2020, Amazon’s market value had reached $1.49 trillion. (Forbes, 2020)
In 2020, Amazon’s projected share of the retail e-commerce markets in the U.S. was at 47% and is predicted to increase to 50% in 2021. (Fortune, 2017)
Amazon’s global retail e-commerce sales are expected to decrease slightly to 15.9% or $468.87 billion in 2021. (eMarketer, 2020)
By 2021, Amazon is projected to reach 39.7% in market share or $302.36 billion in U.S retail e-commerce sales (eMarketer, 2020).
In 2019, U.S. e-commerce sales figures reached $602 billion. Amazon sales comprised 36.9% of all U.S. e-commerce sales during this year. (Digital Commerce 360, 2020)
In 2020, Amazon ranked as the top U.S. company in retail ecommerce sales, capturing 38.7% of the market. It is followed by Walmart (5.3%) and eBay (4.7%). (eMarketer, 2020)
However, when it comes to gross merchandise value (GMV) of global online marketplaces, Amazon only ranked third, generating $339 billion in 2019. The top spot went to Taobao with $538 billion in GMV. (Digital Commerce 360, 2020)

The Growing Product Catalog:

Amazon has a catalog of 12 million products across all categories and services. (RepricerExpress, 2021)
Factoring in the Amazon Marketplace, there are 353 million products available on Amazon. (RepricerExpress, 2021)
The Amazon product category with the most number of global keywords is electronics (70 keywords) followed by home (12), media (7), miscellaneous (6), clothing (4), and food (1). (Visual Capitalist, 2020)
Getting down to the finer details, electronics (44%) are the most frequently bought product on Amazon. Others in the list include: clothing, shoes & jewelry (43%), Home & Kitchen (39%), beauty & personal care (36%), books (33%), cell phones & accessories (28%), movie & TV (25%), pet supplies (20%), sport & outdoors (17%), grocery & gourmet food (15%), automotive parts & accessories (13%), and baby products (9%). (Feedvisor, 2019)
Also, Amazon has a large market share across different categories. The categories include electronic (89.9%), home improvement (83.8%), food (81.8%), sports, fitness & outdoors (89.6%), household essentials (88.8%), and health/medicines (92%). (Feedvisor, 2019)
The top product category for Amazon sellers is home and kitchen, which accounts for 45% of products listed on the platform. (JungleScout, 2020)

What’s More:

There is no doubt, Amazon’s market size will continue to grow. Currently, the retailer ships products to more than 100 countries outside the United States. (Insider, 2020)
Amazon has more than 1.2 million employees, 427,300 of which were hired during the pandemic. (New York Times, 2020)
For every eCommerce dollar spent by a U.S. consumer, Amazon earns a whopping 50 cents. (The Philadelphia Inquirer, 2019)

Putting these statistics into context, Amazon’s meteoric growth seems unstoppable, at least for now. In fact, the recent data of its monstrous market share are astonishing to behold, and it’s evident that the retail giant is the king of the eCommerce empire. The company has formulated an extensive moat for itself, and its dominance in the eCommerce arena is far from waning.

Clearly, owing to Amazon’s monstrous market size, the going is tough for competitors. Even worse, things are poised to get tougher because of the rise of personalized products in eCommerce pioneered by Amazon. However, for brands and retailers selling on Amazon, Amazon ROI statistics provide signs of the massive benefits that lay ahead.

2. Seller and User Statistics

Over the last couple of years, online retail culture has evolved rapidly, and eCommerce dominance has continued to grow. Today, sellers are eager to try their luck on different online platforms and buyers have let their preferences known.

The following statistics offer a window into the needs, wants, and behavior of today’s customers. More importantly, they provide an in-depth look into customer experiences with the Amazon platform. Studying these statistics will help you understand online consumers’ needs. Consequently, you’ll use the insights to create befitting innovations to connect with your loyal customers and high-value prospects.

Amazon Traffic is Astounding

As of January 2021, Amazon ranked 9th in global internet traffic engagement. (Alexa, 2021)
Between July and December of 2020, Amazon had 3.10 billion mobile and desktop visits (SimilarWeb, 2020)
During the COVID-19 pandemic, retailers saw a consistent increase in PC sessions. Kroger had the highest percent change in PC share of sessions at 65%, followed by Target (56%), Amazon (15%), and Walmart (11%). (Verto, 2020)
63.5% of Amazon traffic comes from the U.S. (Amazon, 2021)
Amazon usage statistics have shown that, in December 2020, Amazon had close to 3.1 billion desktop and mobile visits. This is a significant increase from 2.909 billion visits registered since November 2020. (SimilarWeb, 2020)
In terms of percentage, 48% of U.S. consumers visit Amazon.com at least a few times a week. On the other hand, a whopping 89% of U.S. consumers visit Amazon at least once a month. (Feedvisor, 2019)
Besides, 89% of U.S. consumers are more likely to buy a product from Amazon than other online stores. (Feedvisor, 2019)

Amazon has become the platform of choice

Interestingly, 63% of consumers start their search for a new product on Amazon. On the other hand, 63% compared prices on Walmart, 50% discovered new products or brands on Google, and 50% search for inspiration on Instagram. (Kantar, 2020)
When it comes to checking reviews, 79% of U.S. consumers go to Amazon. On the other hand, 32% trust search engines like Google, 25% rely on a retailer website, 11% of consumers go to other marketplaces, whereas 7% trust social media channels. (Feedvisor, 2019)
49% of Americans usually start searching at Amazon when shopping online while 22% start at Google. (CivicScience, 2019)
More importantly, before making a purchase, 82% of consumers check prices from Amazon. Others check prices on search engines (36%), retailer websites (33%), brand websites (24%), another marketplace (17%), or social media (5%). (Feedvisor, 2019)
On average, 45% of U.S. consumers scroll through at most two search pages when searching for a product to buy on Amazon. Interestingly, 26% of consumers buy the first product to appear on the Amazon search results page. (Feedvisor, 2019)
43% of U.S. consumers click on Amazon ads from the web. Of those that click on an Amazon ad on the internet, Google contributes 76%, Facebook (49%), Instagram (21%), Twitter (14%), Pinterest (12%), and Snapchat (7%). (Feedvisor, 2019)

Source: Kantar, 2020

Sellers and Consumers Can’t Resist Amazon

Amazon seller statistics show that there are 9.6 million sellers (including inactive sellers) using the platform. Approximately 2.4 million sellers have a product listed for sale on Amazon. However, less than 10% of active sellers were able to generate over $100,000 in annual sales. (Marketplace Pulse, 2021)
Interestingly, 6,264 sellers join the eCommerce giant every day. (Marketplace Pulse, 2021)
Prime subscribers and younger generation members are Amazon’s most frequent customers. (Feedvisor, 2019)
A whopping 65% of Amazon customers use computer devices to buy products. On the other hand, 26% use smartphones, 9% use tablets, and 1% use voice assistants. (Feedvisor, 2019)
In addition, 74% of consumers go to Amazon when they are ready to buy a product. On the contrary, 10% of consumers go to search engines, brand websites (5%), retailer websites (4%), and social media (1% ). (Feedvisor, 2019)
Interestingly, price (62%) is the biggest motivation for consumers selecting an Amazon Brand. Quality (23%) comes second followed by reviews (12%) and shipping (1%). (Feedvisor, 2019)

Clearly, with its extensive reach, selling on Amazon is an irresistible opportunity. The size of the addressable audience is astounding. Even better, the amount of traffic recorded by Amazon gives you access to a significant pool of established customers. These statistics affirm that Amazon is a comprehensive traffic resource. Chiefly, Amazon is a reliable resource that has evolved to become an integral component of customers’ broader shopping mindset. But that doesn’t mean selling on Amazon is straightforward. To reap maximum benefits, you need a leading eCommerce platform for small businesses and a well-orchestrated customer acquisition strategy.

3. Amazon Prime Statistics

When it comes to creating innovations and programs that set the standards, Amazon has no equal. As an illustration, look at the success and growth of the Amazon Prime subscription. Amazon Prime is an exciting membership service that gives subscribers free two-day shipping. The program is a no-brainer for its free shipping. Besides, it provides numerous perks such as access to exclusive deals on Prime Day, access to Prime Video, and a collection of other benefits.

Prime Subscription is Growing Fast:

Statistics show that 65% of all Amazon customers are Amazon Prime Members, which translates to about 72.8 million Prime members. (Consumer Intelligence Research Partners, 2020)
More data show that by the end of 2021, there will be 148.6 million Amazon Prime users, up from 142.5 users in 2020. (eMarketer, 2020)
Also, 93% of Amazon Prime members renew their membership after one year. (Digital Commerce 360, 2020)
An estimated 82% of households in the U.S. have Amazon Prime in 2019. This number does not factor in households with multiple Prime memberships. (Digital Commerce 360, 2019)
In 2020, 68.7 million U.S. households had an Amazon Prime subscription. The number is projected to balloon to 71.7 million households by 2021. (eMarketer, 2020)
Better still, 55% of U.S. consumers are current Amazon Prime members, 15% are former Prime members, and 31% are not Amazon Prime members. (Feedvisor, 2019)

The Spending by Prime Members is Encouraging:

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48% of Amazon Prime subscribers buy products online more frequently or once a week. On the one hand, 74% buy a product online at least every few weeks. On the other hand, 37% of nonprime members purchase online just a few times a year. (Feedvisor, 2019)
Also, according to Amazon Prime members statistics, the following are the favorite Prime subscription benefits. Free two-day shipping (83%), video and music streaming (10%), PrimeExclusive deals at Whole Foods (5%), free audiobooks & magazines (1%), and other (1%). (Feedvisor, 2019)
Besides, Statista revealed that on average, an Amazon Prime Member spends $1400 on eCommerce shopping, compared to $600 spending of non-Prime members. (MarketWatch, 2019)
34% of current Prime members always buy Prime-eligible products, whereas 53% frequently buy Prime-eligible products. (Feedvisor, 2019)

Amazon Earnings from Prime Subscription Speaks Volumes:

Amazon statistics show that in Q3 2020 alone, the firm gained $6.58 billion in revenue from the subscription services category. (VentureBeat, 2020)

As Amazon statistics have shown, there is an influx of consumers into Amazon Prime. The service has caught the attention of many consumers, and its popularity is set to continue to snowball. What’s intriguing is that Amazon Prime has quashed one of the most prevalent eCommerce challenges, shipping, besides its other inimitable benefits.

The Prime subscription program is a supreme example of Amazon’s innovation prowess. It signifies Amazon’s relentless endeavor to extend its reach and command all facets of the customer purchase journey.

4. Amazon Prime Day Statistics

Another one of Amazon’s ingenious creations is Prime Day. This shopping holiday was first held on July 15, 2015, in celebration of Amazon’s 20th anniversary. Prime Day is an annual shopping window that is exclusively available to all Prime members. The shopping holiday is reminiscent of Cyber Monday or Black Friday. However, unlike the other two shopping holidays, Prime Day deals are offered in a 36-hour window.

Prime Day 2020 sales registered a record of $3.5 billion, which exceeded 2019 sales by around 60%. (Amazon, 2020)
Over $10 billion worth of products were sold on Amazon Prime Day in 2020. (Digital Commerce 360, 2020)
During the fourth quarter of 2020, 67% of people planned to make a purchase on Amazon Prime Day. 65% of people planned to shop on Cyber Monday and 59% on Black Friday. (RetailMeNot, 2020)
On the first day of Prime Day, Amazon saw a lift of 700% in units sold. (Amazon, 2020)
Product views increased by 5% in Prime Day 2020 compared to the previous year, while unique purchases increased by 51%. (SimilarWeb, 2020)
62% of shoppers bought holiday gifts on Prime Day 2020. (Digital Commerce 360, 2020)
Amazon product sales comprised 65% of Prime Day sales while 35% came from marketplace products. (Digital Commerce 360, 2020)
In the U.S., electronics was the most purchased product category on Amazon Prime Day at 32%, followed by household essentials (22%), health and beauty (21%), and toys and video games (21%). (Numerator, 2020)

Source: Numerator, 2020

Since its inception, Amazon Prime Day has maintained an upward trend. It has delivered the killer blow to the traditional Cyber Mondays and Black Fridays. This is because unlike Black Friday and Cyber Monday, which are enjoyed across all divides in the eCommerce world, Prime Day is exclusively meant for Amazon users. That said, with its popularity primed for speedy growth, competitors will only peep helplessly as Amazon trailblazes the future of the shopping holidays.

5. Third-Party Seller and FulFillment by Amazon Statistics

Part of the reason Amazon has gobbled up the lion’s share of the eCommerce market is its Affiliate program. This all-conquering plan offers an easy way for eCommerce entrepreneurs to monetize their websites. Besides, the affiliate program has been a reliable income generator for Amazon. That’s to say, the affiliate program has been beneficial to both Amazon and eCommerce entrepreneurs.

Also, FBA has lent a hand to sellers who are too naive to handle the packaging and shipping of products. On account of convenience, the FBA has been a revelation that saves time and money. Primarily, it has enabled sellers to deliver remarkable customer experience savored by Amazon users.

Amazon generated a total of $53.76 billion in third-party seller service revenue in 2019, dwarfing the $42.7 billion generated in 2018. (Amazon, 2021)
Around 94% of Amazon sellers use Fulfillment by Amazon or FBA. (JungleScout, 2021)
Net sales from third-party seller services on Amazon grew 53% year-on-year during the third quarter of 2020. The trend has recorded an upward trajectory during Q1 2020 at 31% and at 53% during Q2 2020. (Amazon, 2020)
Prime Day 2020 was a record-breaker for the third-party seller as they exceeded $3.5 billion in sales. (Amazon, 2020)
54% of Amazon sellers have jobs outside of their Amazon business. (JungleScout, 2020)

Clearly, the Amazon associates program and the FBA provide insights into Amazon’s growing dominance. The increased income from the third-party seller services doesn’t tell the whole story. However, it gives faint signs of the increased preference by eCommerce entrepreneurs to sell on this platform. Better still, with a big chunk of the top sellers on Amazon using the FBA service, one thing is evident. Customers don’t just flock to the platform for the products, but also Amazon’s stellar services.

6. Amazon Alexa and Amazon Echo Statistics

Amazon does not shy away from taking the risk to pioneer innovations that allow for convenience for online shoppers. First of all, Amazon’s deep expertise has been phenomenal. Secondly, its ability to stay at the forefront of the shifting trends has made it easy to deliver on the expectations of customers. Consequently, the global giant has delivered remarkable solutions like Alexa and Echo devices. Amazon Alexa and Amazon Echo were not designed to exclusively streamline sales. However, these applications have had a hand in the process as statistics have revealed.

In 2020, there were 53.9 million Amazon Echo shipments around the world. (Loup Ventures, 2019)
Also, Amazon Alexa is available on more than 100,000 devices. (Amazon, 2021)
20.8% of adults in the U.S. own an Amazon Echo. (Statista, 2021)
Moreover, as of 2020, Amazon controlled 69.7% of the U.S. smart speaker market. (eMarketer, 2020)
Around one in five consumers (17%) have browsed or shopped for products using a voice-activated assistant. (SUMO Heavy, 2019)
63% of organizations developed voice-enabled technologies for Alexa in 2019. This is followed by Google Assistant (62%), Siri (39%), Cortana (30%), Bixby (16%), and other smart speakers (1%). (Adobe, 2019)

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U.S. Market Voice Assistant Popularity

Amazon Alexa

Google Assistant

Siri

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Cortana

Bixby

Other

Source: Adobe

Technology in the eCommerce space is increasingly becoming a mainstay even as the landscape becomes even more complex. Ever since Amazon introduced the Echo speakers, the growth of Alexa has been on high gear. Today, Alexa has become an integral part of how consumers interact with their smart home devices. On the contrary, its takeoff as a tool to simplify the sales process has not been impressive, but a better future is burgeoning.

7. Amazon Web Services Statistics

Aside from its eCommerce dominance, Amazon is renowned for its remarkable public cloud services. With top brands like AOL, Reddit, Netflix, and Pinterest now running on the Amazon Web Services (AWS), the future looks bright for Amazon cloud services.

By the end of Q3 2020, Amazon Web Services (AWS) controlled 32% of the global cloud infrastructure services market. (Canalys, 2020)
As of January 2021, AWS is used in over 16 million websites around the world. (BuiltWith, 2021)
AWS is one of the biggest revenue generators for Amazon. For example, in Q3 2020 alone, the segment generated $11.601 billion in net sales, an increase from $10.808 billion generated in Q2 2020. (Amazon, 2020)
Furthermore, statistics show that in Q3 2020, AWS registered a 29% year-on-year growth in net sales. The growth rate was the same for Q2 2020. (Amazon, 2020)
AWS accounted for 33% of enterprise spending on cloud infrastructure services, followed by Microsoft (18%). (Synergy Research, 2020)
Meanwhile, Google, Alibaba, and Tencent combined comprised 17% of the market share. (Synergy Research, 2020)
In the middle of the pandemic, AWS was one of the four largest public cloud providers with strong revenue growth at 29%. The rest were Alibaba (59%), Microsoft Azure (47%), and Google Cloud (43%). (TechRepublic, 2020)

AWS is an extremely profitable venture that is starting to imprint its dominance in the public cloud services market. To illustrate, with over 8,000 partner network members, 1,900+ AWS third-party software products, and 70+ infrastructure services, the AWS is a force to reckon with. Having generated $26 billion in revenue in 2018 alone, AWS is proving to be yet another dominant force unleashed by Amazon.

What Do These Amazon Statistics Mean for Brands and Retailers?

There you have it, our comprehensive compilation of Amazon statistics. In a nutshell, the statistics show that Amazon’s dominance is not waning anytime soon. What is more, as the pandemic has forced many people to stay home and turn to the internet to shop, Amazon is surely set to grow further in the coming years. As it stands, the retail behemoth controls the most significant eCommerce market share. It also offers the most extensive product catalog (at 353 million products) and has an enormous market value of $993 billion.

While most of the Amazon data only provides approximate values, we can see that the platform is the first choice for consumers. Actually, Amazon reports have shown that many customers start their product search and price comparison on the Amazon website. More importantly, for consumers looking for authentic reviews, Amazon is always the first option to spring to mind. Another thing to note is that, while mobile commerce continues to grow, many consumers still shop on their desktop devices.

In conclusion, the eCommerce landscape is continually changing, and Amazon has developed the knack to stay ahead with its unique innovations. For example, Prime, Prime Day, and FBA are notable pieces of ingenuity that have stamped Amazon’s authority as a global eCommerce giant. There are many eCommerce platforms for vendors out there that can help you sell products or services online. However, with innovations such as Alexa and Amazon Prime Air, Amazon remains an incredible option for many vendors.

What Next for Brands and Retailers?

That said, you must strategize proactively and borrow a leaf from the Amazon market model. Besides, you need to leverage the available data, like the statistics we’ve compiled, and work with innovative tools to differentiate yourself in the cutthroat online eCommerce space. There is no doubt Amazon provides an established customer base, but for increased acquisition, you should advertise strategically, implementing new technologies, and price more dynamically. Check our guide about today’s best eCommerce software to help you optimize the use of these powerful online business solutions.

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