Insights for Sellers is the latest addition to Marketplace Pulse. We want to help you sell better. We have been collecting billions of data points since our inception, and this is our way to share it with you.
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Back in December we wrote an article on the rise of fraudulent sellers on Amazon. This was causing so much frustration that even Forbes picked up on our findings and wrote an article Amazon Scams On The Rise In 2017 As Fraudulent Sellers Run Amok And Profit Big. We are happy to report that Amazon has been making some changes and have improved the situation.
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Last week The Census Bureau of the Department of Commerce reported 2016 US e-commerce results. Sales have grown by $53.16 billion in a year. Out of that, 55% were generated on Amazon.
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In the 2016 Q4 earnings report published today Walmart reported promising results for Walmart e-commerce. The 29% growth reported today is the highest in 3 years since 2013 Q4. Walmart also confirmed that there are now more than 35 million SKUs on Walmart.com.
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Today The Census Bureau of the Department of Commerce reported quarterly results for US E-Commerce 2016 Q4. E-commerce sales were $102.67 million, up by 14.3% from the year before.
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We are continuing to research brands - recently we were able to build a reliable way to detect private label brands. Thus this time we are sharing top 25 brands based on reviews who enjoy the luxury of having no competition.
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eBay Q4 sales were up 5% YoY, but overall US ecommerce is growing at 15%. The key metric to notice is that auctions are now only 13% of total sales. In 10 years eBay went from being a primarily auction website, to a instant-buy platform.
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There has been an article titled "A Growth Plan for eBay: Buy Etsy" circulating, which is quoting an analyst from Monness, Crespi, Hardt & Co. to have said that eBay should consider acquiring Etsy as a strategy for growth. The combined could company would have a larger product offering, and thus improve Ebay's chances in competition with Amazon. We think this is flawed idea.
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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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One of the major challenges for Amazon sellers is using Fulfillment by Amazon (FBA) successfuly. Amazon continues to change the rules, introduce extra fees and overall make it more challenging to manage it effectively. Thus we looked at just how important using FBA is for top Amazon sellers. When we looked at this data in May 2016, Amazon USA was at 50% - so in 7 months it grew 15%.
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