Amazon Marketplace: Understanding how massive it truly is
Many retailers, established merchants and fledgling brands leverage Amazon as a means to sell more products online to a broader audience. Amazon’s marketplace function, which allows anyone to sell their products on the site, can be utilized by retailers to reach new customers and generate substantial sales and exposure simply due to how many people use the site.
So, just how big is Amazon? A new infographic from Accounting Degree illustrates just how massive Amazon’s reach is and precisely why so many retailers leverage the online marketplace.
Amazon has a huge reach. Of course, any business selling products over the Web could hypothetically engage shoppers across the world. With Amazon, however, merchants are turning a possibility into a reality.
The Amazon marketplace has more than 50 order fulfillment centers (known as Fulfillment by Amazon or FBA) in the United States alone, some encompassing more than 1.2 million square feet of floor space that can be used to hold a wide variety of products.
Amazon also directly operates in 12 markets besides the U.S. and has partnered with even more companies to extend that reach to 29 international markets.
For merchants taking advantage of Amazon’s marketplace, such an expansive reach means they, too, can engage customers on a truly global scale. Online marketplace sellers around the world have continued to make use of Fulfillment by Amazon (FBA), which allows merchants to store their products and services within one of Amazon’s FBA locations, the Web retailer said in a press release. Amazon will then handle the order fulfillment process – the picking, packing and shipping – and sellers also benefit from other perks such as Amazon Prime.
In other words, retailers just need to handle inventory management and making the sale – Fulfillment by Amazon (FBA) takes care of the rest, allowing merchants to reach a broader audience.
A mammoth digital presence
As huge as Amazon’s presence is in the real world, it’s even more of a force in the digital one.
According to the monthly Web Media Matrix reports from comScore, Internet users can be found frequently browsing retail websites.In the top 10 categories of websites noted by comScore, five are retail-based.
When it comes to an online marketplace, Amazon is far and away the leader of the pack. While the top consumer destinations tend to be broad content networks (such as Google and Yahoo), Amazon sites come in at No. 6, with more than 115,000 Americans visiting these pages every month. Comparatively, only 73,000 people head to eBay, which is viewed as another popular online marketplace that retailers can leverage.
Capitalizing on Amazon’s marketplace functions
Merchants looking to reach new customers and generate additional sales should leverage a third-party online marketplace such as the Amazon marketplace . Not only can it help retailers reach further geographically, it can also enable them to engage a broader online audience as well.
“Amazon.com’s name is well-chosen,” Accounting Degree added. “The word ‘Amazon’ has come to be associated with large size, and to say that this online company is big would be an understatement. From the number of markets they serve to the number of items, number and size of Fulfillment by Amazon (FBA) centers, etc. – most everything about Amazon.com is BIG, even behemoth.”
Although multichannel management can add a stumbling block to successful eCommerce operations, the right solutions can help significantly in this regard. Managing inventory and products across Fulfillment by Amazon (FBA) and other channels requires real-time information that is accurate and easy to access, and with the appropriate software, merchants can consolidate their cross-channel efforts into one solution. This makes decision-making much easier and helps merchants identify potential gaps and fix them – or notice opportunities and capitalize on them.