Why Independent Sellers Continue to Choose Amazon: A Deep Dive

What makes Amazon the preferred e-commerce behemoth for small-scale sellers? With so many e-commerce platforms for small businesses to sell their products, Amazon remains a compelling choice for many.

1. Value Proposition & Trust: Most sellers attribute their choice to the exceptional value Amazon offers. By collaborating with Amazon, sellers gain access to a platform that millions of customers trust, advanced tools to foster business growth, and a selling price that’s generally more affordable than alternatives. In 2022 alone, U.S.-based sellers sold over 4.1 billion items on Amazon, generating an average sale of more than $230,000.

Alfred Mai, founder and CEO of ASM Games, emphasizes the platform’s inclusivity, stating, “The nice thing about Amazon is that everyone has an equal opportunity; any small idea you can make happen. You don’t have to be this big company to launch a product.”

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2. The Amazon Brand: Amazon’s reputation is a significant driver for independent sellers. Alex Fedorowicz, founder and CEO of QRxLabs, credits the platform for providing extensive exposure, saying, “Amazon really gave us that exposure at a low cost to a huge amount of customers.”

Amazon’s dedication to ensuring trustworthiness is unparalleled. The company invested over $1.2 billion in 2022 to combat counterfeiting, fraud, and other malicious practices. Such investments underscore the company’s commitment to keeping the shopping experience safe for both customers and sellers.

3. Comprehensive Tools & Services: Every professional seller on Amazon has access to a comprehensive suite of tools designed to help their businesses thrive. Angus Junkin, founder of Garden Tutor, praises Amazon for empowering him, stating, “There is no question in my mind that without Amazon I would have never gotten this business off the ground.”

Amazon’s tools cover the entire selling journey from listing to order management. Plus, the platform gives sellers insights into customer behavior and purchasing trends, aiding in more informed decision-making.

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4. Optional, Value-Driven Services: Beyond the basic services, Amazon offers an array of optional, paid services tailored to enhance business growth. Services range from competitive loan opportunities to efficient advertising solutions. Chris Farley, CEO of Pacers Running, elaborates on the advantages of using Amazon’s Fulfillment service: “There’s no way we could store, pick, pack, and deliver these shoes without Amazon.”

In 2022, Amazon and its partners lent a staggering $2.1 billion to independent sellers, marking a 50% increase from the previous year. Other notable tools include the Transparency program, which allows businesses to safeguard their product authenticity, and Veeqo, which offers significant savings on shipping.

5. A Testament to Success: Independent sellers constitute a whopping 60% of all sales on Amazon. Jason Pratt, founder of Joyspring, shares his success story, “Amazon is the foundation of what we’ve done. We started the brand in Amazon’s store. I chose very early on to pour myself into this channel because I thought it was the best place to build a sustainable business.”

Amazon’s 23-year history of backing independent sellers showcases its commitment to fostering small and medium-sized businesses. As the e-commerce landscape continually evolves, Amazon remains dedicated to offering small businesses the resources and support they need to flourish.

While the world of e-commerce is vast and varied, Amazon’s proven track record of fostering growth, providing unparalleled tools, and its commitment to trust makes it a beacon for independent sellers worldwide. The platform’s continuous investments and innovations ensure that the future is promising for small businesses.

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