Amazon conceived the marketplace to bring brands it couldn't convince to sell onto the site. Thus, for years most of the sellers were large resellers with tens of thousands of products. However, increased competition and brands going direct has eroded this opportunity.
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Amazon's last retail innovation came in 2005 when it introduced the Prime membership. Since then, it has announced hundreds of new offerings and experiments, but the core commerce experience remains virtually unchanged. It learned it doesn't need to do more.
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China-based sellers represented 75% of new sellers on Amazon in January. A significant increase from 47% in the previous year. While this hasn't yet impacted the GMV market share - domestic sellers are responsible for most of the total sales - it is a trend that has been accelerating for years.
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Amazon has always operated as if no other sales channel matters. And as if none will matter. But 2020 was maybe the last year it grew its market share of e-commerce. Shopify came to represent that change.
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The importance and thus also the risk of managing customer expectations for Amazon were the highest ever during the 2020 holiday shopping season. It did ok - unlike in previous years, there was no noticeable increase in negative shopper sentiment.
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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.
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This year, Fulfillment by Amazon (FBA) changed from a service sellers can rely on to a service they hope Amazon will allow them to use. An opaque algorithm now decides which products at what quantities are allowed to be in FBA.
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The best selling winter coat on Amazon for the last four winters has been "the Amazon Coat" by a Chinese brand Orolay. Since 2017, it enters the Women’s Clothing best-sellers Top 100 list starting early November and stays there until February.
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Nearly $1 billion in fresh capital has been committed in 2020 to Amazon aggregators looking to acquire Amazon sellers and brands. The market had a breakout year because of three factors: the pandemic accelerating spending on Amazon, Thrasio raising hundreds of millions of dollars, and Anker, an Amazon-native brand, going public.
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Over 7,500 European businesses surpassed $1 million in sales on Amazon in 2019. Out of the total, 3,300 are based in Germany, 3,200 in the U.K., 600 in Italy, 300 in Spain, and 300 in France.
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