Amazon reveals that over 90% of listings in most categories are now from 3rd party sellers

Amazon says that more than 90 per cent of products listed on its site in most categories now come from third-party sellers.

In a letter to the House Antitrust Subcommittee, which is currently investigating the practices of US tech giants Amazon, Google, Facebook and Apple, Amazon laid bare rarely seen details about how it works with third-party sellers.

According to the 55-page report, over 90 per cent of listed items in six of Amazon’s top seven categories came from third party sellers last year, Business Insider reported.

Amazon’s key electronics category is reportedly made up of 96 per cent third-party products, alongside its beauty category, while its home and kitchen category was made up of a whopping 99 per cent.

Only its books category was made up of less than 90 per cent third-party listings, with 34 per cent coming from Amazon itself.

READ MORE: Ebay and Amazon accounted for 90% of online marketplace spend in 2019

Despite this dramatic shift towards third-party products on its marketplace, these products reportedly accounted for just 60 per cent of total revenues.

Products that Amazon purchased wholesale then resold to customers itself accounted for more than 40 per cent of sales in its electronics, consumables and toys category.

According to Amazon its own label sales also accounted for “only about one per cent” of its total revenues.

This discrepancy is thought to be due to Amazon favouring its own, higher-margin sales in listings on its platform, leaving third party sellers to make their way to the top of listings organically.

The ecommerce giant also revealed that it had spent $500 million last year and employed 8000 people to tackle fraud and abuse on its platform.

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1 Comment. Leave new

  • It’s a pity Amazon don’t give the after sales support to their customers who buy through them from 3rd party sellers.
    I don’t understand how they can escape legal responsibility for goods that they don’t themselves supply as an agent.

    Reply

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