As the overall Amazon marketplace GMV expands, top sellers represent a shrinking percent. More of the sales come from a broader set of sellers than the top sellers outpacing the rest. The data indicates that it is getting harder for large sellers to continue growing because it is getting easier for new sellers to start selling.
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More brands joined the Walmart marketplace last week than ever before, setting a record for new sellers added in a week. The partnership with Shopify, announced on June 15th, was mostly why more than 1,100 new sellers joined the marketplace. That’s three times more than the average week this year so far.
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Amazon launched in Saudi Arabia on Wednesday, June 17th, replacing Souq.com - the largest e-commerce platform in the Arab world it acquired for $580 million in 2017 - with Amazon.sa. Saudi Arabia is Amazon’s 17th global marketplace. A year ago, the company launched in the United Arab Emirates, replacing Souq there too.
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As e-commerce spending accelerated, Amazon grew slower than the next ten biggest online retail rivals. Amazon’s struggles with fulfillment as well as unique strengths by Walmart in grocery and Target in same-day delivery have created a growth spike.
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As e-commerce booms during the pandemic, some marketplaces have greatly benefited, a few prepared for the future, while others were caught unprepared to react. A typical seller relied on Amazon, saw growth on Walmart, got excited by Facebook, and didn’t care about Google.
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Sales on Etsy grew nearly 140% in May, after growing 100% in April. May marks the highest sales month since Etsy went public in 2015. Powering that, 165,000 new sellers joined the marketplace during the month, double the average.
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Amazon shoppers left nearly one million negative seller reviews in the last thirty days. More than twice the usual amount. In the U.S., 13% of customers had a negative buying experience, up from 5% a year ago.
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Issues affecting global supply chains and Amazon's warehouses have considerably reduced the number of new products launched on the site. For example, the number of new best-sellers in the headphones category shrank from nearly 200 a month to less than 20 during the last thirty days. The volatility of the best-sellers list is an indicator of the health of the private label sellers industry.
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Sales on Walmart marketplace increased more than on its main rivals Amazon and eBay. The marketplace, which provides over 90% of the assortment on the website, is surging, driven by the significant increase in the number of shoppers on Walmart.
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Amazon has opened its warehouses to all items and reintroduced shopping functionality like deals and recommendations. Fast shipping for non-essentials is back, too, crucially.
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