After a record-breaking 2020, the Amazon marketplace shows no signs of slowing down. In Amazon’s quarterly earnings report for Q1 2021, the results show the marketplace is only growing larger and third-party sellers remain the backbone of Amazon’s signature retail platform.
It’s estimated that third-party Amazon sellers were responsible for 55% of all products sold on the Amazon marketplace, matching Q4 2020 and up from 52% from a year earlier. Even more encouraging for Amazon sellers, that percentage hasn’t budged even as the amount of products sold has risen.
Overall, Amazon reports $52.9 billion in retail sales in Q1 2021. For comparison, that number represents 44% year-over-year growth from 2020.
Emphatically, the record-breaking numbers are encouraging in any context. However, the sales data becomes even more impressive when taking the events of the past year into context.
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As the COVID-19 pandemic caused lockdowns that pushed customers online, it goes without saying Amazon sales would dramatically increase. If there were any doubts on if customers would ditch digital shopping once restrictions loosened up, this quarter serves as the first indicator of e-commerce’s staying power.
While the year-over-year results may be partially skewed due to the pandemic only impacting the last month or so, the numbers represent a significant increase from Q2 and Q3 2020, when the pandemic and its subsequent restrictions were more prevalent.
Regarding what’s ahead for Amazon, the company projects year-over-year growth between 24% and 30% for Q2 2021. This projection is company-wide and not solely for the marketplace. With this in mind, the Amazon marketplace continues to thrive and appears poised for continued growth for the foreseeable future.
Without a doubt, there’s never been more opportunity to make your entrepreneurial dreams come true on Amazon.
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