More than Half of U.S. Brands Are Selling on Amazon

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Amazon has taken ownership of the U.S. ecommerce journey, with nearly nine out of 10 domestic shoppers visiting the marketplace during their purchase cycle and 50% of them beginning product searches there, according to data from Feedvisor.

Brands are also held in Amazon’s sway, Feedvisor found in its survey of 500 sellers, with 54% of them selling there and considering it critical to their business and a tremendous growth opportunity.

The survey found that 97% of brands selling on Amazon and 84% of those that don’t believe the most compelling benefit to the marketplace is acquiring new customers.

Brands already selling on Amazon cited rationales such as “make sure my brand is present” (81%), “serve my customers where they are” (72%) and “defend my brand against unauthorized resellers” (71%) for staking their claim there.

Among brands not selling on Amazon, 33% said new customer acquisition to diversify their revenue would be the main reason to sign on. Over 80% of brands selling directly on Amazon are interested in expanding to the third-party marketplaces, Feedvisor found.

About one-third of brands selling on Amazon diversify by using both Vendor Central and the main marketplace. Of the first-party brands surveyed, 81% said they wanted to expand to Amazon’s third-party channel, with 61% citing the desire to get in front of a larger audience. Other factors included increasing their competitive presence (20%), having more control over pricing (17%) and having more control over inventory (2%).

Feedvisor found Amazon, the market leader in ecommerce sales, drives more than 50% of online revenue for about half the brands surveyed, helping them maximize their reach and drive incremental business.

For more than a quarter of the brands selling on Amazon (28%), over half of their Amazon traffic represents net new business, according to Feedvisor; for the rest it’s between 25% and 50%.

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