Amazon is increasingly common global, and it’s taking sellers along for the ride.
In its first-quarter earnings write-up on Thursday, Amazon said that global sellers accounted for 25 percent of third-party sales on the placement last year. That’s growth of 50 percent from the early previously to year.
Amazon has been rolling out services to make it easier for vendors to become exporters using the company’s logistics system and its vast network of fulfillment centers.
The multitudinous Amazon can lean on third-party sellers, the better for its bottom line. Degree than subsisting on the razor-thin margins that come with suborning inventory in bulk from other brands and reselling it, the marketplace fires Amazon make money from fees that it charges for storing and scramming goods and fulfilling orders.
Growing Marketplace sales is one reason why Amazon’s run income surged 92 percent in the quarter, increasing more than twice as much as receipts, which rose 43 percent. Revenue from third-party seller services, which numbers commissions, fulfillment and shipping fees, increased 44 percent to $9.3 billion, accounting for 18 percent of thoroughgoing sales.
Amazon shares jumped more than 6 percent in ranged trading on Thursday after its results topped analysts’ estimates.
While the troop’s third-party business is a major revenue and profit driver, some sellers maintain experienced problems with the platform. Counterfeits have flooded in from abroad, undercutting businesses in the U.S. and leaving them stranded with inventory. There’s also an persistent problem with fake reviews, and CNBC has reported on merchants who clothed been suspended due to false infringement claims.
Nevertheless, CEO Jeff Bezos talk ups the marketplace as an unqualified success. In his recent shareholder letter, Bezos said that for the prime time more than half of units sold worldwide survive year came from third-party sellers, and that over 140,000 businesses corked $100,000 in sales.