Amazon Growing Past Books
When Amazon started to focus more on retail, books got pushed down the priority list. Especially books sold by the marketplace. Books sales are growing, but their share of the total sales on Amazon is decreasing.
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Brands and Marketplaces Are Squeezing Out Retailers
While 50% shoppers choose to buy something they have never bought before through a retailer like Walmart, Tesco, Aldi, or Target, 47% turn to a marketplace such as Amazon, eBay, Alibaba, or Etsy for repeat purchases.
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Distribution Is a Cost of Doing Business
The fee charged by marketplaces is fundamentally buying just one thing - distribution. Distribution is a cost of doing business and thus doesn't come for free.
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Frustrating Walmart Marketplace
The Walmart marketplace is frustrating because it is two different experiences sharing one website. CNBC broke the news that Walmart is working on fixing this. Walmart is finally addressing the flaw which existed since the marketplace inception in 2009.
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Offer Prime or Go Home
As more Amazon shoppers convert to Prime members, successful sellers have to do what those shoppers expect. Thus more sellers use Fulfillment by Amazon every year - today 69% of the top sellers on Amazon use FBA.
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Slaying the Hydra of Counterfeits
In Greek mythology the Hydra is a nine-headed serpent like snake. It was said that if you cut off one hydra head, two more would grow back. This perfectly describes the counterfeits and fake products issue on Amazon.
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Chicken or the Egg in Amazon Australia
The launch of Amazon.com.au, the growth of the marketplace, and the launch of FBA followed by Prime membership is a display of how marketplaces get bootstrapped.
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Amazon Seller Retention
Half of the top Amazon.com sellers were also top sellers two years ago. Despite the growing competition, increasing Amazon fees, and new trends like private label taking over the market, they are still at the top.
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Twenty Thousand Amazon Millionaire Sellers
Amazon has confirmed that more than 20,000 Amazon marketplace sellers worldwide surpassed $1 million in sales in 2017. Despite the millions of sellers only 20,000 were able to build a business.
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It Cost Amazon $150 Billion
On Thursday Amazon reported their latest earnings sending the stock to all-time highs after beating analyst estimates for both revenue and profit. But what looks like unstoppable dominance today is instead a decade of investing and execution.
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