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Amazon Statistics, Trends and Insights for 2023 / 2024

Threecolts
Geri Mileva
Published
October 12, 2023
Modified
March 26, 2024
Amazon Statistics, Trends, and Insights

Amazon offers a convenient platform for people to sell their products, but with constantly evolving consumer behavior, Amazon sellers must take a proactive stance to stay competitive. One way to stay ahead of the game is to monitor and track the latest statistics, trends, and insights that shape the Amazon marketplace.

In this article, we’ll crunch through the numbers and delve deeper into the trends that matter in 2023 and beyond.

Amazon Sales, Revenue, and Growth

Let’s start our list of statistics with those that provide insights into Amazon’s sales, revenue, and growth. These give you a glimpse of what the platform can do for your business and how you can harness its full potential.

  • Amazon continues to dominate the e-commerce market.

Amazon commands an impressive share of the U.S. e-commerce market. With a market share of approximately 37.8%, it is ahead of its competitors by a huge margin. Walmart, the second largest online retailer, only holds a 6.3% market share, and Apple, in third place, has only 3.9%. This dominance remains evident in 2023 and reaffirms Amazon's status as the go-to platform for sellers. To capitalize on this, sellers should leverage Amazon's expansive customer base and extensive resources to enhance their business visibility and reach.

  • Amazon net sales grew 11% year-on-year in Q2 2023.

Amazon generated net sales of $134.4 billion in the second quarter of this year. Compared with the $121.2 billion in Q2 of 2022, this shows an increase of 11%. Amazon projects continued growth with estimated net sales of $138 to $143 billion in the third quarter of this year. For sellers, this robust growth indicates a flourishing marketplace ripe for engagement. Capitalizing on this momentum through strategic listings, promotions, and fulfillment methods can lead to significant sales growth.

  • Prime Day 2023 was an unparalleled success.

With Prime members worldwide purchasing over 375 million items and accruing savings exceeding $2.5 billion, Prime Day 2023 was a definite success. The event held in July saw Amazon offering an array of deals never before offered on Prime Day. Home, Fashion, and Beauty stood out as the top-selling categories that month. Independent sellers, predominantly small and medium-sized businesses, also thrived during Prime Day. If you’re a seller on Amazon, participating in these events and aligning your promotions with peak shopping periods can bring you great benefits. 

  • There are almost 200 million Amazon Prime members in the United States alone.

Approximately 71% of Amazon shoppers in the United States are Amazon Prime members. This translates to a membership of about 167 million Prime subscribers. Among the top factors that inspire shoppers to sign up for membership are free deliveries, personalized deals, and exclusive discounts for Prime members. 

  • Amazon projects to increase growth in 2023 and 2024.

Insider Intelligence projects Amazon to be one of the top retail e-commerce companies in the United States to see the most growth over the next two years. Based on data they gathered, they forecast a growth of 9.9% in 2023 and 11.7% in 2024.

top us retail ecommerce companies

Consumer Behavior and Search Trends

In the dynamic world of e-commerce, understanding consumer behavior is key to success. In this section, we’ve gathered insights to give you a glimpse of what consumers want and how they interact with the platform. These can guide you in adapting to their ever-changing needs.

  • Amazon remains the most visited e-commerce platform in the United States.

In April 2023, Amazon registered 2.2 billion combined web visits worldwide. While this may be lower than the numbers in the previous months, the platform remains the most visited online marketplace. This shows that Amazon is still one of the best places to increase your online visibility and grow your business.

  • Organic search still generates substantial traffic worldwide.

A six-month analysis of visits to Amazon shows that 5.9 billion visits worldwide came directly from desktop searches to Amazon.com. In the same period, nearly two billion visits came from organic searches. Surprisingly, while most consumers are active on social media, only 385 million visits to Amazon came from social networks. This shows that SEO is still important for Amazon sellers. To boost your search rankings, integrate an effective SEO strategy into your marketing plan.

  • Approximately 58.1% of social media traffic to Amazon comes from YouTube.

YouTube, Facebook, X (Formerly Twitter), Reddit, and WhatsApp are the top social media traffic referrers to Amazon. However, YouTube leads by a huge margin with almost 6 out of 10 social media visitors coming from the video-sharing platform. Consider partnering with YouTube content creators and influencers to enhance your visibility on the platform.

  • 75% of consumers use Amazon for product discovery and research.

Before making a purchase, 3 in 4 consumers go to Amazon to compare prices and read product reviews. The same report shows that 32% of consumers purchase the first product that appears on the Amazon search results page. This undisputed trust and reliance on the platform is a huge advantage for Amazon sellers.

  • Health and Personal Care is the top product category on Amazon.

Product categories like Electronics, Home & Kitchen, and Health & Personal Care consistently perform well on Amazon. In the latest Small Business Empowerment Report, Amazon reported the top five categories for sellers as Health and Personal Care, Home, Beauty, Grocery, and Apparel. Consider these when selecting products to sell on the platform.

  • ‘Find Deals’ is the most used CTA in Amazon ads descriptions.

In an analysis of 10,000 online ads in the United States, nearly 3,900 ads used ‘Find Deals’ as their call to action. The second most effective CTA that leads potential buyers to Amazon is ‘Free Shipping’. If you run Amazon ads or other paid ads, consider using these two CTAs.

  • When purchasing online, more buyers use mobile devices than desktops.

The shift towards mobile shopping is expected to continue. In fact, 60% of online shoppers are on mobile devices when making their purchases. This is significantly higher than the 32% who use their desktop computers. Ensure your listings are mobile-friendly, as more customers make purchases via smartphones and desktops.

Amazon Seller Community

The Amazon Seller Community is a thriving ecosystem of entrepreneurs and small businesses, driven by Amazon's commitment to empowering sellers. Understanding the dynamics of this community and the opportunities it offers can help you on your journey to success on the platform.

  • More than 60% of sales on Amazon stores come from independent sellers.

Amazon empowers small businesses with the right tools for lucrative growth. Its efforts are evident in the numbers revealed in the annual U.S. Small Business Empowerment Report. In the previous year, independent sellers collectively sold over 4.1 billion products, averaging more than $230,000 in sales.

  • Almost 9 in 10 Amazon sellers say that they are profitable.

In a survey of more than 2,000 Amazon sellers, 89% indicated that they are profitable. Although faced with rising costs and other challenges, 37% of the respondents still noted an increase in profits for the year 2022.

  • Amazon independent sellers created over a million U.S.-based jobs last year.

The impressive sales growth for independent sellers has led to the creation of an estimated 1.5 million U.S.-based jobs by small to medium-sized businesses. With Amazon independent sellers present in all 50 states, growth on the platform is expected to fuel more opportunities for economic growth in local communities.

  • Amazon independent sellers continue to grow in numbers.

California, Florida, New York, Texas, and New Jersey are currently the top five states with the most independent sellers on Amazon. However, Alaska, Washington DC, Mississippi, Maine, and Wyoming are quickly catching up. These five regions have been ranked as the states with the fastest-growing independent sellers.

  • Private-label brands are gaining traction.

Creating your brand and private label products can help you stand out and build customer loyalty. In 2023, this trend is likely to keep gaining traction. According to a consumer behavior report, 76% of Amazon shoppers are more likely to purchase a private label over a brand name. The main drivers for this purchase decision are lower prices, low shipping costs, and positive product reviews. If you're considering private labeling, focus on these key factors to attract more customers.

  • Sellers are opting for FBA.

Fulfillment by Amazon (FBA) remains a popular choice among sellers due to its convenience, offering a cost-effective and efficient way to fulfill orders. Shipping with FBA costs 30% less per unit than standard shipping options offered by major U.S. carriers and 70% less per unit than alternatives comparable to FBA. However, fees and storage costs can impact profitability. Carefully analyze your products to determine whether FBA is the best fulfillment method for your items. Balance costs and convenience when making your decision.

  • Half of the Amazon seller community has full-time or part-time jobs.

Not all Amazon sellers are full-time e-commerce merchants. About 37% of them are employed full-time in jobs outside the platform. If you’re not yet on the platform but are considering creating a shop, know that it’s certainly possible to juggle full-time work with Amazon selling. 

Advertising and Marketing

Gain higher returns on ad spend by understanding the latest trends in advertising and marketing. Here are a couple of statistics worth keeping in mind as you plan your ad strategy for 2023 and 2024.

  • Sponsored products account for 78% of Amazon Ad spending worldwide.

A significant part of the advertising budget spent by sellers on Amazon is allocated to promoting products through Sponsored Products ads. This can be expected to increase further as Amazon boosts this channel with off-site placements. Starting this year, Sponsored Products ads will be extended to other apps and websites such as BuzzFeed, Pinterest, Mashable, and Raptive.

  • Social media ads are on the rise.

While 59% of Amazon sellers advertise on e-commerce platforms like Amazon PPC Ads, there is an increasing number of sellers harnessing the power of social media. From 36% in 2022, 41% of Amazon sellers now place ads on Facebook, Instagram, TikTok, YouTube, and other social networks. Investing in this type of advertising can boost your product visibility and sales. Just remember to keep an eye on your ad campaigns' performance and adjust your strategy accordingly.

Strategies for Continued Growth

The numbers above tell a remarkable story, but sustaining this level of success requires unwavering innovation. Amazon's commitment to continuous improvement goes beyond mere statistics. It's about forging partnerships with platforms and companies to deliver value-driven solutions that enrich the experiences of all users, whether they’re selling or buying on the platform.

  • Amazon’s partnership with Pinterest is expected to increase the online visibility of sellers.

Amazon has become Pinterest’s first partner for third-party ads. This alliance opens new horizons for sellers, increasing their online visibility manifold. With this partnership, Amazon can now display ads for Amazon products on the Pinterest platform. With more than 463 million monthly visitors looking for inspiration on Pinterest, Amazon sellers stand to gain more exposure for the products they’re selling. If you sell products related to home, fashion, food, and beauty, this development is great news for you.

  • Amazon simplifies listing creation using generative AI.

Amazon sellers can now leverage the new AI capabilities of Amazon to create better product listings. With this latest advancement, you can generate attention-grabbing titles, compelling descriptions, and more comprehensive product detail lists with less effort. The AI model can create them based on your product specifications and images. You can then use AI-generated content as is or refine it to your liking. The new AI tools available for all sellers are bound to enhance both the seller and buyer experiences on the platform.

  • Amazon empowers sellers with advanced tools that help accelerate business growth.

At the recently held Accelerate 2023, Amazon announced new third-party integrations and enterprise solutions that can help independent sellers manage and grow their Amazon shops. The new apps available for sellers include an AI-powered omnichannel marketing software, an inventory app with powerful integration capabilities, and enhancements to the Customer Sentiment Insights tool. If you’re a small business owner or new seller with limited resources, taking advantage of these Amazon tools can boost your growth.

Why Staying Up to Date is Crucial for Amazon Sellers

These statistics are just a handful of the numbers you need to monitor for continuous growth. Why do they matter? In a world where change is the only thing that is constant, knowing the slightest upticks and downturns is a strategic imperative for businesses.

  1. Consumer behavior and market trends shift rapidly. To thrive in the constantly changing consumer market, adaptability is key. You must adapt your product offerings and marketing strategies to stay ahead of the curve.
  2. Staying updated enables you to grab new opportunities. Amazon constantly introduces new features, ad formats, and tools. Keeping abreast of these updates ensures that you're making the most of every opportunity to expand your reach and boost your sales.
  3. A well-informed seller makes better business decisions. By understanding the statistics and trends, you can make data-driven choices about everything from inventory management to advertising spend. This strategic decision-making can help increase your chances of success.
  4. Amazon is a fiercely competitive marketplace. With millions of sellers on the platform, the ones who can differentiate themselves from the others stand out. Being aware of the latest trends enables you to identify whitespace opportunities and remain competitive.

Amazon’s growth trajectory is undeniable, but its customer base is also becoming much more discerning. To leverage the growth potential the platform offers, you must crunch numbers beyond your sales and inventory. Insights you can glean from the latest statistics and trends pave the way for long-term success.

Why Staying Up to Date is Crucial for Amazon Sellers

Transform Insights into Action

As we've explored the 2023 statistics, trends, and insights that impact Amazon sellers, it’s clear that Amazon continues to offer immense opportunities for entrepreneurs and businesses. But how can you make the most of these opportunities and navigate the dynamic Amazon marketplace with confidence? That's where Threecolts comes into play.

Threecolts is your trusted partner on your Amazon journey. With a deep understanding of the Amazon ecosystem, Threecolts provides you with the knowledge, strategies, and tools you need to thrive. It offers tailored solutions to help you:

  • Automate and streamline inventory management
  • Generate positive reviews to increase your feedback score
  • Centralize customer support services to facilitate faster and more efficient responses to customer concerns
  • Maximize profit and build product-level income statements for better analytics

With its suite of advanced seller tools and software, Threecolts empowers you with the insights and expertise you need to make informed decisions, scale your business, and reach new heights on Amazon. Register for free to discover e-commerce solutions that work.