Third-party sales at Amazon are growing at a faster rate than first-party sales, according to the company, which in a new report outlined the number of small and medium-sized businesses that topped key sales milestones during 2018.
The Amazon report noted that more than 50,000 small and medium-sized businesses that have an Amazon store exceeded the $500,000 sales mark in 2018. Also, the company noted that nearly 200,000 additional businesses with an Amazon store surpassed yearly sales of $100,000 this past year and the number of small and medium-sized businesses topping the $1 million mark in sales grew 20% during the past year.
Amazon said that more than one million small and medium-sized businesses based in the U.S. are now utilizing an Amazon store.
“Since we opened our shelves to third-party sellers in 2001, small and medium-sized businesses have been an integral part of Amazon’s DNA,” said Nick Denissen, vp/Amazon. “This year growth of small and medium-sized businesses in our stores enabled business owners to create new products, provide a greater selection to customers, and reinvest in their local communities through job creation.”
Bobby Djavaheri, director of sales and development, Yedi Houseware, said selling on Amazon has been an important part of his company’s business. “Since we began listing products on Amazon 12 years ago, our business has skyrocketed and we now have 12 full-time employees and plan to hire more this year. Amazon allows us to reach new customers across the U.S. and even worldwide, which enabled our business to grow 126% just last year.”