How Amazon is Helping Small Businesses Excel Online
Amazon Gets a Bad Reputation
The global giant, Amazon, has been getting blamed for destroying small businesses and brick-and-mortar stores. Its extensive online marketplace allows consumers to search for and order anything they can imagine and have it on their doorstep in two days with Amazon Prime shipping. The sheer convenience of it is keeping shoppers out of traditional retail stores and causes critics to blame online markets for the decline in the storefront business economy and so many stores closing nationwide.
Small Businesses Skyrocket by Partnering with Amazon
Contrary to very popular belief, Amazon is actually helping many small businesses across the nation increase their sales drastically and build their companies. According to a press release from Amazon on January 18, 2019, the international online marketplace has helped more than 50,000 small and mid-sized businesses skyrocket their growth in 2018. They did so by expanding their ‘shelves’ and bringing small businesses on as third-party sellers. The press release states that “More than half of units sold in Amazon’s stores are from small and medium-sized businesses”, attributing to almost 200,000 businesses selling more than $100,000 on Amazon in 2018 and more than 50,000 businesses selling $500,000 or more.
By coming on as a third-party seller, these small and mid-sized businesses have been able to create a large customer base, maintain a consistent cash flow, and grow their companies. The Director of Sales & Development for Yedi Houseware, a business that has been listing their products on Amazon for 12 years, mentioned that “Amazon allows us to reach new customers across the U.S. and even worldwide, which enabled our business to grow 126% just last year !”
Changing the Perspective
While online retailers and shopping online is certainly on the rise due to its convenience for consumers, there are great ways for these major retailers, such as Amazon, to utilize their platform to help small businesses around the world and bring a wider variety of products to customers.
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