business news in context, analysis with attitude

Amazon said over the weekend that more than 50,000 small and medium-sized businesses generated a half-million dollars or more in sales during 2018, while close to another 200,000 such businesses generated $100,000 in sales last year.

And, Amazon said, the number of such businesses that did $1 million or more in sales last year grew by 20 percent compared to the year before. In fact, according to the statement, “Third-party sales are growing at a faster rate than first-party sales on Amazon and across retailers in the U.S. During the 2018 holiday season, Amazon reported that sales by small and medium-sized businesses outpaced its retail business sales in Amazon’s stores worldwide.”
KC's View:
Amazon’s Marketplace always has been an enormous advantage for the company, providing its business with a robust and dynamic selection that drives shoppers, sales and profits … it always has separated Amazon from its competition.

It is interesting that Amazon is making this point in a press release; I suspect it may have something to do with the fact that as Amazon gets bigger and the competition gets tougher, it is critical to the Marketplace’s continued health and growth that Amazon still be seen as a legitimate and relatively friendly place through which small companies can do business.