2020 was the best year for e-commerce marketplaces in over a decade. E-commerce growth had a step change, and marketplaces captured most of it. In aggregate, it was the most successful year for sellers and brands that transact through them, too. The Year in Review looks at the state of marketplaces and describes the most important trends.Read the report
Advertising on Amazon now costs, on average, $1.20 per click. Up 30% from $0.93 at the start of the year and up over 50% year-over-year. Demand for advertising on Amazon is rising faster than the ad inventory on and off Amazon, thus driving up advertising prices.
An increasing percentage of sales on the Amazon marketplace comes from sellers that have been on it for years. More than half, from those who joined in 2017 or earlier. At the same time, new sellers are finding opportunities and bring incremental marketplace growth.
Amazon has expanded the list of countries accepted to register for selling on Amazon to 188 countries. The company added 85 new countries, mainly in Central Asia, Middle East, South America, and Africa.
US e-commerce reached market share levels it would have only gotten to in 2022. According to the Department of Commerce, e-commerce represented 13.4% of total retail spending in Q1 2021. Before the pandemic, it was expected to be 12.3%.
Amazon has suspended over a dozen Chinese sellers for participating in fake review schemes. The list includes Mpow and Aukey, two of the biggest electronics Amazon-native brands out of China. The total sales by the suspended sellers eclipses $1 billion.
Amazon Marketplace grew 60% in the first quarter of 2021, the fastest in at least five years since the company started reporting third-party seller services revenue.
For most consumers, Amazon has been back to normal for a while. However, behind the scenes, for the sellers and brands that sell on Amazon, Amazon’s fulfillment operations have remained disrupted.
Walmarts wants most of its shoppers to be Walmart+ members. It is aggressively pushing free shipping, the membership's core benefit. While also trying to increase free two-day shipping selection by nudging sellers to use WFS.
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