Amazon Sellers See Major Opportunity in Private Label Expansion, Feedvisor Study Finds

Two in Five Sellers Interested in Creating Private Label Brands


NEW YORK, May 23, 2018 (GLOBE NEWSWIRE) -- Feedvisor, the only algo-commerce company using machine-learning and big data to help online retailers make accurate business decisions, today announced results of its The State of the Amazon Marketplace 2018 report. While Amazon continues to dominate the e-commerce landscape, these findings show increased year-over-year profit margins for third-party sellers on the Marketplace, as well as opportunities for continued growth through private label expansion.

To illustrate the evolving state of Amazon’s Marketplace and shed light on how third-party sellers manage their businesses, Feedvisor surveyed 1,200 Amazon merchants about their goals, priorities, and revenue figures. Findings include:

  • High-volume sellers are increasing advertising investment: For sellers with an annual revenue over $2 million, 12 percent of sellers spend more than $1 million annually, a five percent increase from 2017.

  • eBay losing ground as top contender behind Amazon; growing interest in Walmart.com: While eBay has lost notable ground over the last year with just 52 percent of survey respondents stating they sell on the platform (down from 65 percent in 2017), Walmart has made exceptional strides with 36 percent of respondents planning to focus online sales there in 2018, versus just 29 percent in 2017.

“Amazon continues its reign as the dominant force in e-commerce today. Our study reveals that sellers recognize the value and growth potential that a strong Amazon presence can create for their businesses,” said Victor Rosenman, CEO, Feedvisor. “Third-party sellers are bringing in more money on the platform than ever before. While they are still navigating the complexities of the Marketplace, their instincts and ambition will undoubtedly help them achieve their goals.”

Sellers are evolving their shops from small businesses to more mature operations. Last year, 84 percent of businesses surveyed employed just one to five people. This year, that number dropped to 74 percent while the number of businesses with 50 or more employees increased by five percent. The survey also analyzed current business models, growth, and future pain points of Amazon sellers. Key findings include:

  • Million-dollar sellers experiencing significant growth: The number of high-performing sellers skyrocketed this year. The number of Amazon merchants with more than $1 million in sales grew nine percent from last year. The number of multimillion-dollar sellers also increased from last year, moving from one percent of sellers in 2017 to three percent this year.
     
  • Competition, fees reviews are top concerns: Nearly half of sellers (40 percent) said their top concern is competing with Amazon on its Marketplace for both the Buy Box and private label products, closely followed by Marketplace fees (33 percent) and negative customers (32 percent).

“While sellers have valid concerns about competition on the marketplace, and the impact of fees and customer reviews, there are resources to help them succeed. Sellers can look to advanced algorithmic and AI tools to manage their inventory, grow even faster, and prepare their businesses for the future,” said Rosenman.

To download The State of the Amazon Marketplace 2018 study, which includes additional insights and resources for growing your Amazon business, please visit here. For more information about Feedvisor or to schedule a demo, please visit www.feedvisor.com.

About Feedvisor
Feedvisor is the pioneer of Algo-Commerce — the discipline of using big data and machine-learning algorithms to make business-critical decisions for online retailers. Feedvisor’s cloud-based algorithmic repricing and revenue intelligence solutions power millions of pricing decisions daily, providing retailers with actionable insights to maximize profitability and drive their business growth. For more information about Feedvisor, visit www.feedvisor.com.

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