Study: Small retailers are making money on online marketplaces
Over 60 percent of small to mid-size businesses are attributing half, or more, of their ecommerce sales to Amazon and other online marketplaces, according to a new NetElixir study.
NetElixir surveyed over 500 small to medium size business owners and managers of companies that sell products through Amazon.
"Having worked closely with retailers for over 10 years, we have always known that Amazon is a strong ecommerce contender that can both help and hurt retailers," said Udayan Bose, CEO of NetElixir, in a press release. "It seems that 2017 is the year that this understanding became mainstream, and as a search marketing agency specializing in retail, we felt it was important to have a way to quantify small and mid-size retailers' experience with the ecommerce giant."
The majority (60.2 percent) of small to mid-sized businesses are seeing 50 percent or more of their ecommerce sales happening on marketplaces and 26.6 percent see a 50/50 split from their websites versus marketplaces such as Amazon, Jet.com and eBay.
"Our results clearly demonstrate that Amazon has a huge influence on SMBs and is an integral part of their business strategy. However, our results also indicate that most businesses aren't sure how to navigate marketing on Amazon, with a majority of SMBs not marketing on it at all," stated Bose in the release.