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A worker loads customer orders onto a waiting tractor-trailer inside Amazon’s million-square-foot distribution warehouse that opened last fall in Fall River, MA on March 23, 2017.
John Tlumacki | Boston Globe | fake images
Amazon said outside sellers in its market made more than $ 3.5 billion during this year’s Prime Day shopping event, an increase of almost 60% compared to last year and a record for small and medium-sized businesses. companies that make up the market. .
The company, which did not disclose total Prime Day sales, said third-party Prime Day sales grew even more than Amazon’s retail business.
Prime Day, launched in 2015, has become one of the company’s most important retail and marketing events. Secures new Prime subscribers and allows Amazon to further promote its products and services.
This year’s Prime Day was out of the ordinary as the coronavirus pandemic forced Amazon to delay the marquee event from mid-July to October. The right timing means that the holiday shopping season will begin earlier than ever. Other major retailers have followed Amazon’s lead and started their discount promotions this month.
Amazon’s range of Echo, Ring, Eero, and private label products are generally heavily discounted during Prime Day. Amazon said its smallest and cheapest voice-activated smart speaker, the Echo Dot, was the most popular product this year. Prime Day was celebrated in 20 countries this year.
But the event also features strong participation from more than 2.3 million small and medium-sized businesses that make up Amazon’s online marketplace. In 2019, third-party sellers saw more than $ 2 billion in sales during Prime Day. This year, the top-selling categories for third-party sellers included bedding, wireless accessories, nutrition and wellness, arts and crafts, as well as healthcare, Amazon said.
Third-party sellers are becoming increasingly important to Amazon, accounting for about 58% of the company’s total merchandise sold. At that percentage, Amazon may have generated at least $ 7 billion in sales on Prime Day this year. Previously, JPMorgan predicted that this year’s event could generate revenue of $ 7.5 billion, while eMarketer was targeting sales close to $ 10 billion.
The mega-sale is expected to help the company post a record fourth quarter. Combined with the holiday sales fever, Amazon is expected to surpass $ 100 billion in quarterly revenue for the first time in the fourth quarter, according to analysts surveyed by FactSet.
