Is Amazon Marketplace Saturated with Third-Party Sellers?
Almost 3 million people have found success selling products on Amazon Marketplace. In fact, third-party sellers made up more than half of Amazon’s $300 billion revenue in 2020. Statistically speaking, a majority of Amazon sellers are already gainfully employed, working 40+ hours per week, and are mostly based in the U.S.
Is Amazon Saturated?
For new or those thinking about selling products on Amazon, saturation is one of the most common concerns, which would mean a seller can only achieve growth through taking market share from competitors. However, there is only one Amazon, and everyone wants to sell on it!
So while Amazon is crowded, there’s a reason for it – global world dominance in the online retail market! Moreover, the growth of Amazon is exponential and seller moats are relatively limited, new and existing sellers are competing for a growing pie of gross merchandise value (or, GMV).
How to Stand-Out on Amazon
Of course, there are millions of sellers on Amazon, but there are also millions of YouTubers, millions of franchises, millions of restaurants, and so on… most markets worth being in are already crowded. So what do you do? You stand out.
Market your store: Paid social ads, organic social media engagement, paid influencer marketing, and micro-influencers are fantastic assets in your Amazon marketing campaign because they increase listing traffic.
Optimize for Amazon Search: Make sure your store and your products are optimized for Amazon’s search engine.
Take your customer service to the next level: Being responsive is key! By providing friendly, helpful, quick response to problems or questions and by providing quick shipping, orders quickly you will earn the trust and loyalty of your customers.
Offer deals & loyalty discounts: Offer shipping, discount coupons, gift cards, VIP cards, contests, and other promotional offers.
The most common question people have with their Amazon FBA is with their products. Before you go into ordering a product from China, make sure you do the research. Amazon’s catalog has millions of products to look through, and the key is finding a product that’s in demand with low competition. Amazon FBA is already a huge platform with millions of buyers. You don’t have to have your own warehouse and you don’t have to hire employees to ship out your products for you. It’s an all-in-one business. Is Amazon saturated? No. It’s crowded, but with savvy marketing and product research, the opportunities are limitless.
