#158 - Amazon’s Record Profits Mystery, Third-Party Seller's All-Time High, and more
Hot News
Amazon Steers Third-Party Seller Share To All-Time High
Amazon’s third-party sellers accounted for an all-time high of 62% of units sold in Q4 2024, though this is more by Amazon’s design than sellers’ dominance. One-fourth of Amazon’s revenue now comes from seller fees, another record high. History suggests that both numbers will continue to rise as Amazon steadily and purposefully shifts from retailer to infrastructure provider. Twenty-five years ago, Amazon launched its third-party marketplace as one of a long list of experiments designed to rapidly expand its product selection in pursuit of becoming the “Everything Store.”
marketplacepulse.com
Amazon isn't the money-losing online bookstore it once was. Yesterday, the retail giant announced record quarterly and annual profits, with operating income increasing 86% year-over-year. But when it comes to explaining this profit growth publicly, Amazon doesn't disclose the whole picture. And that murkiness leaves unanswered the question of just how much profit comes from one of Amazon's thornier business practices: Increasing the fees on the millions of independent sellers who are critical to stocking the shopping platform's digital shelves.
aol.com
Amazon to Automatically Set Seller Handling Capacity Based on Performance Data
Amazon is obsessed with showing shoppers accurate delivery estimates. As a result, Amazon changed how sellers’ Order Handling Capacity settings are set. As of February 7, Amazon will automatically set a threshold that is a conservative estimate of the volume capacity sellers can handle based on their average daily orders over the past 30 days. The setting is a bit like a safety valve – if sellers get a sudden spike in orders and they exceed their order handling capacity, Amazon will show shoppers a delivery date that’s a day longer, giving sellers an additional day of handling time.
ecommercebytes.com
Good to Know
There are many ways of selling on Amazon. Firstly there are first-party (1P) vendor sales, where vendors send their inventory to Amazon, who in turn control the pricing and include “ships from and sold by Amazon.com” on product listings. The benefits of 1P sales on Amazon are wholesale purchases from Amazon, priority selling and brand trust through Amazon’s credibility as a seller. Amazon also permits third-party (3P) sales on its marketplace. Both individuals and professional sellers can sell on Amazon Marketplace.
statista.com
Helping customers discover even more selection on Amazon
Amazon offers a broad selection, carrying hundreds of millions of products, including 300 million items available with fast, free Prime delivery, across more than 35 categories including home, apparel, beauty, grocery, and everyday essentials. Because every customer and every shopping trip is unique, Amazon works to cater to every need, want, interest, and occasion. In the past year alone, we have increased product selection by millions of items at every price point, from luxury designers to everyday essentials.
aboutamazon.com
Amazon’s quarterly profits soar to a record $20 billion, but cloud growth comes up short
Amazon beat Wall Street’s overall expectations with $187.8 billion in net sales, up 10%, and came in well ahead on the bottom line, with earnings of $1.86 per share, vs. expectations of $1.48 for the fourth quarter. Quarterly profits surpassed $20 billion for the first time, up more than 88% from a year ago. The results for the quarter included the e-commerce giant’s sales from the 2024 holiday shopping season.
geekwire.com
SPS Commerce acquires Amazon seller software firm Carbon6
SPS Commerce Inc. , renowned in the retail cloud services sector and currently valued at $6.77 billion, has completed the acquisition of Carbon6 Technologies, Inc., a software provider catering to Amazon sellers with tools designed for revenue recovery for suppliers. The acquisition, announced today, aims to enhance the offerings for both first-party and third-party sellers in the retail space. According to InvestingPro data, SPS Commerce maintains a "GREAT" financial health score, positioning it well for strategic expansions.
investing.com
Global net revenue of Amazon.com from 4th quarter 2017 to 4th quarter 2024, by product group
In the fourth quarter of 2024, Amazon.com saw a nine percent increase in global net revenue across online stores when compared to the prior quarter. In terms of profitability, the online stores segment was followed by retail third-party seller services, with net revenues of 47.7 billion U.S. dollars. Amazon.com, world’s leading online retailing company based in the United States, enjoyed unprecedented growth in net revenues in 2020 and 2021, also because of the coronavirus pandemic lockdown. This growth was again repeated in the annual net sales across different global markets, with the United States being the most prominent one.
statista.com
TransferMate becomes a member of Amazon's PSP programme
Through this move, Amazon sellers are set to be able to leverage TransferMate’s accounts to receive their sales proceeds. The company’s offering includes local virtual accounts to get paid in multiple currencies by Amazon. Additionally, TransferMate’s accounts include all of Amazon’s stores in North America, Eurozone countries, the UK, Australia, and several marketplaces in the APAC region.
thepaypers.com
Amazon is a more complex phenomenon than a highly successful marketplace selling its items and enabling third-party vendors to use its platform to sell its products. It is a multinational technology company relying on e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon enjoys a reputation as the world’s most influential economic and cultural force. It is also a brand that sets the rules and commands respect even among its FANG peers, Meta (formerly Facebook), Netflix, and Alphabet/Google, which have demonstrated massive growth in recent years.
investing.com
Amazon's net income from 1st quarter 2009 to 4th quarter 2024
In the fourth quarter 2024, Amazon's net income amounted to roughly 20 billion U.S. dollars, up from the previous quarter. Online product sales are the biggest revenue segment of the e-tailer, followed by retail third-party seller services. Amazon not only processes vendor sales but also enables third-party sellers to sell their goods through the platform. In the fourth quarter of 2024, 62 percent of all paid unit sales were generated by 3P sellers.
statista.com
Tips and Tricks
How to Find Trending Products on Amazon in 2025
Finding trending products early is essential for standing out in Amazon’s competitive marketplace. With thousands of new sellers entering the platform daily, the ability to identify and capitalize on emerging trends can be the difference between success and failure. The most successful Amazon sellers rely on data-driven tools to discover new product opportunities, validate demand, and avoid fleeting fads that can result in financial losses.
junglescout.com
Starting an Amazon Store: A Step-by-Step Guide
Opening an Amazon store offers immense revenue potential, with the eCommerce giant generating billions in annual sales and providing access to a global marketplace. For businesses, selling on Amazon is a strategic move to boost visibility, attract customers, and drive profits. However, navigating the platform can be daunting without proper guidance. We’ll provide a comprehensive, step-by-step approach to starting an Amazon store — from competitor analysis and account setup to marketing strategies and scaling your business.
designrush.com
Imports from Canada: Navigating Tariffs & Trade Shifts for Amazon Sellers
Canada has long been a key trade partner for the United States, offering Amazon sellers a reliable source of diverse products. However, recent tariff changes have introduced new challenges. The United States announced a 25% tariff on imports from Canada, originally set to take effect in February 2025 but delayed by 30 days to March 2025. This temporary delay gives Amazon sellers a critical window to reassess sourcing strategies and mitigate potential cost increases.
junglescout.com
Podcasts
Flip App – A Hot New Marketplace You Aren’t Selling On
Join us as we welcome Carrie Miller, Principal Brand Evangelist at Helium 10, back to the show, where she shares her exciting journey navigating the e-commerce landscape. Carrie has been thriving on a lesser-known platform called Flip, selling an impressive 30 units daily. She talks about her strategic approaches, including leveraging product inserts to collect customer emails, which has significantly boosted her Shopify sales.
helium10.com