We ran some numbers and found that roughly 10% of TOP 10,000 brands on Amazon are sold by a single seller. Out of TOP 1,000, which includes Sony, Hewlett Packard, Fisher Price, and many other major brands, 5% of of them are sold by one seller. We see a trend of manufacturers selling directly on Amazon, and new brands being created by retailers themselves, so this percentage should increase over time.
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Amazon USA marketplace added 54,000 new sellers in a month. 120,000 new sellers joined all Amazon marketplaces in a month. Since we looked at this back in July, the growth rate has accelerated and Amazon USA has remained growing at a steady pace.
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A very interesting metric for us is what sort of brands are on sale on Amazon, how many sellers sell them and how brands grow and shrink on the marketplace. A lot of the brands offered by a single seller or two are misspelled or mistaken brands. Of the 1,357,529 total brands on Amazon, at least a half could be discarded as duplicates. Each seller on average has 68 brands. However this average number is meaningless as it hides the distribution - most sellers have 10 or less brands.
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We estimate that more than 30% of all active Amazon.com sellers carry less than 10 products and 2 or less brands. Many of those sellers could have boosted their sales by using incentivized reviews, however last week Amazon put a stop to this practice. While many of the biggest Amazon sellers are carrying dozens of brands, a growing amount of sellers are manufacturers selling their own brand or new sellers building a brand. This is why we think incentivized reviews were so used by smaller sellers as that allowed them to have drastic increase in sales.
Read moreIn June more sellers saw a decline than were able to grow their sales. The fastest growing seller was Simple Modern, a classic case of private labeling. They only have 6 products in stock, but all of those products are their own brand and thus they are able to avoid competition from other sellers.
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A study called "Amazon SEO Research Study" from Ripen eCommerce looked at more than 344,936 unique products and 746,500 search results to find what high-ranking products have in common. It is a fascinating insight into search ranking opportunities.
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One of the TOP 50 Amazon.com marketplace sellers changed their name from Juvolicious to Juvo+ on April 4th. As a fairly successful and growing seller they are trying to jump to the next level and join the biggest retailers like Avalanche Brands and etailz. They all have very similar product offerings, though Juvo+ is stronger in private labeling offering unique products.
Read moreTop 3 sellers in February are all selling their own branded products. While Christmas season was very strong for traditional reseller-style Amazon retailers, so far 2016 has shown great results for sellers focused on designing and manufacturing their own products. Existing brands are launching on the Amazon marketplace and are very quickly finding the customers. As private labeling is heating up, more and more sellers are trying to grow their own brands as well.
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Without a big announcement Amazon has entered the Fashion business. Ed Yruma, managing director at KeyBanc Capital Markets reported yesterday that Amazon.com has launched over 1,800 different fashion products on its site, under seven different brand names it trademarked. Those brands are Franklin & Freeman, Franklin Tailored, James & Erin, Lark & Ro, North Eleven, Scout + Ro and Society New York.
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