Amazon Prime Day 2020 “record-breaking” for SMEs as 3rd party sales jump 60%

Amazon Prime Day 2020 was a “record-breaking event for small and medium businesses” as third-party seller sales grew more than Amazon’s own.

Third-party sellers, which now account for more than 60 per cent of total sales at Amazon, saw sales grow nearly 60 per cent compared to Prime Day 2019, surpassing $3.5 billion for the first time.

According to Amazon customers saved a total of $1.4 billion during its two-day event, which was held across 19 countries this week.

While Amazon does not reveal its blow-by-blow figures for Prime Day, this year it has gone out of its way to emphasise the success of smaller independent retailers.

According to Acquia’s general manager Steve Williamson this is a calculated move “indicative of the current climate and consumer sentiment”.

READ MORE: Amazon Prime Day 2020: These were the top selling items on day one

“At a time when Amazon faces mounting pressure from lawmakers over the entrenched advantages enjoyed by Big Tech, highlighting the huge benefits of Prime Day for smaller third-party sellers is a smart move.

“Shouting from the rooftops about its own success would only give further ammunition to regulators who seek to clip its wings, and level the playing field for smaller rivals.”

While some have commended Amazon for recognising its third party sellers, on which it increasingly depends, Mirakl’s general manager Brendan Walsh believes it is not going far enough.

He added: “While Prime Day has shown how much power third-party sellers have on Amazon, the time has come for these sellers to take this power back.

“Recent reports suggest that Amazon is using third-party seller data in a way that is detrimental to the sellers’ sales. An ecosystem should be created that supports sellers so that marketplace operators can scale their offering and assortment of stock with ease and as quickly as possible.

“Marketplaces can be easily adopted by all businesses, enabling them to harness the power of third parties – benefiting both the retailer and the seller. Now is the prime time for businesses to adopt their own marketplace and give sellers options beyond Amazon.”

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