Amazon Doubled Shipments for Independent Merchants Last Year
Marketers who work with local merchants should pay attention
The news that Amazon said its has doubled the shipments for independent merchants cannot be ignored by marketers who work with local merchants.
With more than 2 billion items sold and delivered last year, according to Bloomberg, it is becoming more evident many consumers are interested in purchasing an increasingly wide range products online, if given the opportunity.
The news also provided evidence that the online retailer's increased investments in warehouses and expansion into fashion and household goods have paid off.
The e-commerce company has emerged as the world's biggest, by offering fast, free delivery of items from its vast network of shippings hubs where inventory is stored close to consumers. Fulfillment by Amazon, its logistics service, lets merchants send goods to Amazon warehouses and pay a fee for packing and shipping online orders to customers.
Marketers working with local merchants can communicate this fact to consumers, who may hesitate to order online, especially during the holiday season, due to the time it may take for the package to arrive.
The number of merchants using the service increased 70 percent in 2016, Amazon said Wednesday in a statement, and the market share did not only come from books and electronics.
Amazon, which has predominantly won the market share of book and electronic delivery, has increased its presence in new categories such as clothing and kitchen items,
In addition to new categories, Amazon is increasing its growth rate by expanding overseas. The sales volume through Fulfillment by Amazon increased outside of the U.S. by more than 80 percent last year. Amazon, in an effort to support this production, added a logistics service in Europe that allows merchants to send goods to a single Amazon hub, and the company distributes the items to warehouses close to customers in the U.K., Germany, France, Spain, Italy, Poland and the Czech Republic.