Podcast Episode 075 : Amazon Stats That Will Blow Your Mind

In today’s episode, we are going to blow your mind with some incredible Amazon stats. Not only are they wildly impressive, but these facts and figures actually impact you as an Amazon seller and could get you excited about continuing to sell on Amazon.

We start off by sharing some of the stats around Amazon’s popularity and supplement them with some of the many reasons why so many people shop there. Next we dive into Amazon’s sales and boil the numbers down to how much the online shopper sells every second, minute, hour, and day. So why are these numbers so high? That comes down to trustworthiness, and we tell you all about Amazon’s efforts to make its customers comfortable and excited to use their platform. The last bundle of facts we share with you is FBA stats. Over the last couple of years, Amazon FBA numbers have shot through the roof, and they don’t seem to be slowing down any time soon. To hear about these stats, facts, and figures in more detail, be sure to join us today and have your mind blown.

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Key points from Episode 75:

• We explore the popularity of Amazon and how much Amazon has grown over the recent years.
• What an Amazon Prime subscription has to offer the customer, as well as how it impacts Amazon sellers.
• Hear about Amazon sales numbers and why they are so impressive.
• How customers view Amazon’s trustworthiness and how that turns into more and more sales for 3rd party sellers.
• The number of current sellers on Amazon and how many new sellers sign up each year (as well as the number of sellers who quit).
• And so much more!

Links and resources mentioned in this episode:

• Amazon statistic source #1
• Amazon statistic source #2
• Amazon statistic source #3
• Amazon statistic source #4
• Amazon statistic source #5

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Episode 75 Transcript:

[WELCOME]

[0:00:01.8] ANNOUNCER: Welcome to The Full-Time FBA Show. In each episode, it’s our goal to help you turn part time hours into a full-time income, selling almost anything on Amazon. Now, your hosts of the show, Stephen and Rebecca Smotherman.

[INTRODUCTION]

[0:00:20.7] STEPHEN: Welcome to episode number 75 of The Full-Time FBA Show. We are looking forward to this discussion today because we’re going to be talking about some Amazon statistics that will blow your mind. I want to, in post-production, include an explosion sound after that.

Do we not have the budget for that? I guess not, now with me to talk about this today is my wife Rebecca, how are you doing Rebecca?

[0:00:44.2] REBECCA: Hi, I think I’m okay, I’m trying hard to just get through this intro because in addition to being episode number 75, this is take number 75 of this intro. This is the best we can do guys.

[0:00:58.2] STEPHEN: Yes, this is the one we’re going to go with. We’re going to talk about some Amazon stats that impact you as an Amazon seller, maybe get you excited about continuing to sell on Amazon and we’re going to talk about that on today’s episode of The Full-Time FBA Show.

[INTERVIEW]

[0:01:15.7] REBECCA: All right, I’m not sure if we will be able to live up to the promise of blowing your mind with these statistics but there are some interesting things to consider here and the things that we’re going to be talking about really do impact our FBA businesses.

We’ve got a list of just different facts and figures here that we want to go over with you and let’s start off Stephen with the popularity of Amazon. This is a big deal for anybody who is considering selling on Amazon or already is selling on Amazon because Amazon’s pretty popular from what I understand.

[0:01:46.8] STEPHEN: Yeah, I mean, there is a lot of different platforms out there for online sellers to sell on but Amazon is by far the number one platform for a couple of reasons. I mean, Amazon is the number one place that customers go to when they are going to shop online.

Up until a few years ago, it was Google. People would go to Google, search for items, ideas for gifts, people would search for a specific thing that they’re looking for to buy and then you went to Google but for the past few years, Amazon is now the number one place, the starting point for online shoppers.

Of course, you want them to buy your items. A few other stats to kind of go along with that, there is over 150 million people who have downloaded the Amazon shopping app. Over 150 million people have the ability to buy from Amazon right in their pocket at a moment’s notice. That’s huge.

Also, another big deal over 150 million prime members and that’s a 50% increase from back in 2018. It’s a huge deal. Prime members, they get the two-day shipping, sometimes next-day shipping, they get the Amazon prime TV to watch, music and all sorts of different types of perks but they also get that fast shipping for the stuff that they want to buy.

[0:03:02.7] REBECCA: Those are your committed shoppers. If they’re willing to pay for the prime subscription, that’s a committed shopper. They are dedicated to Amazon and that’s a hundred and fifty million customers who are that dedicated.

[0:03:15.2] STEPHEN: Yeah and that breaks down to one third of all households in the United States are prime members. Over 20% of people who are shopping from prime members, they are shopping two or three times a week and over 7% of prime subscribers shop on a daily basis. I think we might fall into that.

[0:03:35.3] REBECCA: I think we’re in the multiple times a week, I would not say we’re daily.

[0:03:38.5] STEPHEN: That’s true. It feels like they arrive daily but that might be because stuff has spread out when it comes to deliveries.

[0:03:44.1] REBECCA: I don’t think we’re making orders every day. Anyway, this is not about us, I’m just – this is true confession time. We are among those dedicated shoppers.

[0:03:51.1] STEPHEN: Yes.

[0:03:52.7] REBECCA: That is pretty convincing that Amazon’s popular, we are not surprised to hear that, I would imagine. Let’s talk for a minute then about Amazon sales?

[0:04:03.1] STEPHEN: Amazon sales, this kind of part blew my mind. Each second, Amazon sells $4,700 worth of items. Each minute, those sales add up to over $283,000 in sales. Every hour, that averages to more than 17 million in sales. That’s over 408 million dollars in sales per day on average.

That’s huge. Again, people are coming to buy from Amazon, they’re buying all day long, every second long and we want to – they have our stuff in stock so they can buy our stuff.

[0:04:37.0] REBECCA: Just to note, we’re going to have links in the show notes from where we got these numbers. These are not things that we’re just making up, we have sources for it and so, be sure and checkout the links to the show notes and we’ll talk more about that as we get further in this podcast episode.

Yes, that’s a lot of sales per second $4,700 that’s pretty crazy. The next thing let’s talk about is, how trustworthy do you customers find Amazon to be.

[0:05:06.0] STEPHEN: Yeah, in fact, this is kind of the reason why we talked about number one and number two first. The popularity, the sales, that’s because 89% of buyers say that they are most likely to buy their products from Amazon over any other e-commerce website.

That’s more than Walmart.com or eBay or Poshmark or anystore.com I mean, that’s not a real website, anystore.com. I just mean the name of the store .com. Any store’s website, their store, people are going to pick Amazon over anything else and because of their popularity, because of their sales, you can see that proof that Amazon is trustworthy. Rebecca and I, a few years ago, went to an Amazon partner’s sellers, sum it up in Seattle at the Amazon headquarters up there.

They told us, one of the things that we’ve heard for years is that customer trust is their number one priority. That’s why their return policy is so flexible because they want to earn customer’s trust so that they continue to come back and buy more and we’ve seen that in our Amazon business, they continue to come back to buy more and more.

[0:06:08.8] REBECCA: I mean, this is more than just the return policy, it comes back to the way the listings are presented on the website. How controlling Amazon is about potential counterfeits on their websites. Sellers who have inauthentic complaints against them. It’s a really serious concern and that’s because Amazon wants buyers to trust their website and by and large, they do.

[0:06:30.9] STEPHEN: Yeah, I mean, 89%, that’s a huge number.

[0:06:33.7] REBECCA: Right. Okay, let’s get into something that I’m sure anybody listening to this podcast is going to be really focused in on because we are Amazon FBA sellers, this is The Full-Time FBA Show because we sell via the FBA program.

Let’s talk about the FBA program and third-party sellers on Amazon, what kind of numbers do you have for us where FBA is concerned?

[0:06:56.8] STEPHEN: When it comes to sales on Amazon, first I’m going to give you the number that Amazon has sold as a whole and then I will tell you what part of that came from third party sellers. In 2020, Amazon experienced 490 billion, that’s billion with a B, in sales and 300 billion of that was thanks to third party sellers so that is over 61% of all sales from Amazon come from third party sellers like you and like me and that was just huge.

It’s been a huge increase from the year before because from 2019, there was a 100 billion sales increase towards 2020. 300 billion in sales in 2020 increased from 200 billion in 2019. That’s a huge jump and it just continues to grow.

[0:07:45.4] REBECCA: 300 billion in 2020 from third party sellers up from 200 billion from third party sellers in 2019.

[0:07:53.2] STEPHEN: Yes.

[0:07:53.6] REBECCA: Am I interpreting that correctly?

[0:07:54.7] STEPHEN: That is correct.

[0:07:55.3] REBECCA: Okay, that’s – you are getting into numbers that are just hard to wrap your mind around. That’s a lot.

[0:07:59.8] STEPHEN: It is, it really is.

[0:08:00.9] REBECCA: That’s just so much in sales. Okay so –

[0:08:03.5] STEPHEN: Is your mind blown yet?

[0:08:04.5] REBECCA: I’m not going to go that far. Basically what you’re saying is third parties, third party sellers really are crucial to Amazon success.

[0:08:13.4] STEPHEN: Yeah and even Jeff Bezos last year, actually two years ago, two years ago is when third party sellers surpassed Amazon as the higher sales maker from Amazon and so Jeff Bezos said that third party sellers are kicking Amazon’s butt when it comes to sales on Amazon.

[0:08:30.2] REBECCA: Okay, well that’s good to know. All right, so let’s talk about the number of sellers on Amazon. Give us some facts about that.

[0:08:39.4] STEPHEN: This was something that was interesting to me. Currently, there is over 2.5 million active sellers on Amazon. Out of that 2.5 million sellers, 25,000 of them have garnered over $1 million in sales and over 200,000 have eclipsed the six-figure mark of 100,000 in sales and so 2.5 million active sellers on Amazon. There is still a lot of room for new sellers to come in and a lot of opportunity for us as third party sellers to grow our Amazon business but this is something that I really found interesting was this next stat.

Every year, about one million new Amazon sellers sign up and most of them quit soon after that. There is a lot of people thinking that Amazon is going to be a get rich quick scheme or get rich quick plan and that’s just not true. It is something that requires a lot of hard work and so 2.5 active sellers on Amazon.

[0:09:39.4] REBECCA: 2.5 million.

[0:09:40.2] STEPHEN: Yes, sorry, not 2.5 people. How do you get a point by a person? I don’t know. 2.5 million active sellers on Amazon, about a million per year come in new and most of them quit. Don’t let this discourage you because you know what? You are not doing this alone. We are here to help you. With episodes from The Full-Time FBA Show to help you, we have tools at our blog at fulltimefba.com/ourtrainings that can help you with so many different aspects of your Amazon business to help you grow.

We’ve got our Full-Time FBA Facebook Group, a community of over 10,000 people helping each other grow. You are not in this alone. Most Amazon sellers when they get started, they’re by themselves but you don’t have to be. We can all do this together.

[0:10:22.3] REBECCA: Yeah, I look at that number, 200,000 sellers who are making over a 100,000 in sales every year and to me, there’s times where I know that I feel like we’re so alone as FBA sellers, we look around and it’s like we only know a very small number of other people in our real life not our online life who sell on Amazon and so you can kind of feel like sometimes I’m the only one doing this and is this really sustainable and what am I doing.

To know that over 200,000 people out there, there are over 200,000 sellers, businesses just like you who are making a decent living at selling on Amazon that to me is – that’s a number that I really enjoy looking at and thinking about that like this is not going away and this is something that we have built into. It’s something to be proud of and that other people out there are doing something similar and too, we just are excited to be able to help other people too.

That’s why we started Full-Time FBA the blog and also the podcast. It’s exciting to think about helping other families like ours to be able to support themselves, helping other parents to be able to spend more time with their kids. Helping kids to be able to spend more time with their aging parents, you know whatever your situation is, selling on Amazon is a really great way to get some time and some flexibility built back into your schedule.

[0:11:46.9] STEPHEN: Those are just some stats that have really, you know, they blew my mind. I don’t know about yours Rebecca but they’re really interesting, really encouraging stats and something that will hopefully will help fuel you to continue going in your Amazon FBA journey.

[CLOSING CONVERSATION]

[0:12:04.1] REBECCA: Well, thank you so much for joining us today. I have really enjoyed talking about these different stats and thinking about how it impacts Amazon selling in general and also just specifically how it impacts our own business and again, if you are interested in any of the sources that these numbers were taken from, you can find those links at fulltimefba.com/75. That’s the show notes for this episode, fulltimefba.com/75, that’s the number 75 because this is episode number 75, which as Stephen pointed out earlier is three quarters of the way to 100 episodes.

[0:12:40.1] STEPHEN: Yep, I did that before one of our first takes. That was our first take that we ended up not going with, yes.

[0:12:46.5] REBECCA: That’s another stat for you, we are three quarters of the way to 100 episodes.

[0:12:51.3] STEPHEN: Woo-hoo, so next week on the show, we’re going to be talking about what to do when you have inventory and stock that doesn’t sell. Maybe you bought a dud. Well, let’s see if we can help you with that on the next episode of The Full-Time FBA Show.

[OUTRO]

[0:13:07.1] ANNOUNCER: That is all for this episode of The Full-Time FBA Show. So head over to fulltimefba.com/podcast, where you will find the show notes and links from this episode. While you’re there, subscribe to our newsletter where you’ll get several free downloads of our popular and helpful Amazon FBA resources. Now, take action on what you have learned today so you can find success at turning part-time hours into a full-time income with Amazon FBA.

[END]