Amazon Sellers Will Make Up At Least Half of American E-Commerce By 2022:What Does This Mean for You
Updated: Sep 15
From humble beginnings to an omnipresent leader, Amazon has become the most unbreakable giant in the field of e-commerce. At present, all the changes over the past couple of years and their impact on the global economy have greatly affected the positioning of the Amazon marketplace. At the early onset of the global pandemic, Amazon became the default go-to for online shopping for many households, not only in America but around the world as well.
Amazon FBA sellers have experienced a boost in their sales during the pandemic. However, this rise in sales has especially affected a few sellers who market mainstream products that became highly in demand during the onset of the pandemic. This includes products that fall under the health and safety categories, like sanitizing gel and masks. Basic needs and grocery items, including perishable products such as milk and tissue paper have also shown skyrocketing sales digitally as people have turned to online grocery shopping.
On the other hand, unforeseen shutdowns and hiccups at factories have seen some Amazon FBA sellers –often those who offer private label products and other specialty items–experience a sudden drop in sales. Many private label brands were forced to change their selling path and try to capture the attention of buyers in a time when priorities changed. Competition for basic products and health-related items remains at a high and entering the category at this point can be quite tricky.
With this sudden shift in consumer behavior and product preferences, Amazon sellers struggled to make adjustments to make sure that their items would sell during the whole stretch of the pandemic, and even in the post-Covid era. As sellers adapt and become smarter while online consumer demand grows, Amazon sellers’ market share has grown and will continue to do so, expected to surpass at least half of the US e-commerce market this year as we roll into 2022.
What exactly does this mean?
ONE: Shoppers’ Attitudes on Spending Are Changing
The attitude of buyers towards spending has rapidly shifted because of necessity. However, now after more than a year and a stabilizing economy, consumer demands have become even more extensive, which affects how sellers choose specific products and how they improve marketing tactics in order to capture the attention of the buyer yet again and drive sales back into their FBA business.
Because people are more inclined to spend money on mundane, everyday necessities, Amazon FBA sellers should find more practical ways to regain consumer attention, designed to convince a shopper that the products they sell are necessary. Increasing the value of each product is critical to defining an item’s success as it is “reintroduced” to the market as an everyday item, keeping in mind that the perception on spending has evolved.
TWO: Seller Attitudes Are Also Shifting
Because some products have lost their initial appeal, largely as buyers live in a “new norm” and cater to these needs, some sellers have observed this changing behaviour and made the decision to reflect this change in the products they sell. From specialized items and holiday-focused products, they now also cater to products in basic categories, like perishable food to housewares and cleaning products, as well as health and nutritional items, like supplements and other selfcare-related products, which have seemingly increased in sales ever since the pandemic’s onset.
Sellers have expanded their offering and become more inclusive, aiming to reach a variety of cultures and attitudes. Still, some FBA entrepreneurs have taken this time to change paths and looked to put their Amazon business for sale, often making a successful exit after contacting a company that invests in Amazon FBA businesses and allows for owners to come out on top.
THREE: Amazon Sellers Are More Adaptable
Even before the pandemic, it was evident that Amazon is on the forefront of meeting customer demands and changing global attitudes when it comes to online consumerism. The platform has gone from providing limited marketing to establishing multiple ways for sellers to promote products and target buyers.
From utilizing online SEO strategies to adding titles that capture buyers’ attention, as well as social media platforms and Amazon provided marketing, a new wave of advertising opens a world of possibilities for sellers, especially as their FBA business begins to grow. For sellers who are ready to take on the exciting challenge and take on the competition while laying out their marketing strategy, Amazon can be both enticing and fulfilling for ambitious sellers.
Matched with the potential for large profit margins, Amazon FBA sellers often hire teams of marketers and managers to make sure that their business remains afloat, especially in the midst of expansion within the platform and unpredictable changes in online selling and global e-commerce.
Are You Thinking of Selling Your FBA Amazon Business?
Your initial conclusion may be that it’s unwise to sell your Amazon business now, considering the substantial growth that Amazon and its sellers have seen in recent years.
This expansion also means that there are over two million active sellers around the globe who sell on the platform which means competition is fierce. This fact highlights the need of existing sellers to develop an airtight strategy for reaching buyers and making sure their methods effectively target and attract buyers.
Many seasoned Amazon sellers face tough decisions as to whether they should continue on the platform or figure out how to sell a business such as an FBA operation. They face frustration and exhaustion as they try to cope with constant adjustments and an ever changing e-commerce landscape. The emotional and mental stresses are valid; long-term Amazon sellers feel the pressure of keeping up with the competition while trying to catch a fair share of the market willing to buy their products. If you yourself are an Amazon seller and you feel this way, then know that you are not alone, and often the best option can be to sell your Amazon business.
Rest assured that there are FBA aggregators that are ready to provide you the right price for your business. After evaluating your business’s background and seller central account performance, a trustworthy FBA acquisition company like Umbrella Fund can often help you liquidate your business and reward your investments, while allowing you a successful exit, rather than a slow decline. If you feel that your Amazon business has gone from a fulfilling endeavor to taking a toll on your life, then selling your Amazon business could be a viable decision that can ease you of the many stressors you’re facing.
Managing your FBA Amazon business, especially now, requires lots of time and effort and having a team to handle the growing demand for time spent on strategy can lessen the pressure. Nonetheless, this requires an investment dedicated to added manpower. If this is not how you envisioned your entrepreneurship, then it may be the right time for you to sell your FBA business to an acquisition company that understands your brand and can bring your business into the future.
The biggest draw of selling your FBA business is that a reputable acquisition company is experienced and knowledgeable about the Amazon system from top to bottom, and can readily provide the teams needed to continue the growth of any Amazon business they take under their management. Looking for the right company to sell your FBA Amazon business to is similar to passing it onto a business partner, so you need an aggregator you can entrust it to; Umbrella Fund understands how to take your venture forward, even beyond the pandemic’s impact on the global economy.