Amazon this week released its second annual SMB Impact Report, detailing the ways in which small and medium businesses have benefited from partnering with the massive e-commerce retailer and online services provider. According to the company, the number of smaller businesses, developers, and content creators in partnership exceeds 1.9 million, generating around $160 billion in revenue.
Amazon currently estimates that more than 50 percent of the products sold through its interfaces are provided by small- and medium-sized businesses operating on the site. While the top categories for those business partners are health and personal care, home, and beauty, there are also industrial distributors trying to stave off the threat of Amazon as a competitor by slipping under its mighty wing.
In a 2016 promotional video, Joe Caldwell, the e-commerce manager of Minnesota-based SIM Supply, says selling on Amazon helped reach beyond the mining industry in the immediate area.
“Our growth has allowed us to bring on new vendors, new products, and increase our offerings to our customers,” Caldwell says in the video.
Bloomberg notes that analysts predict approximately half of the dollars spent online in 2019 — a figure expected to be in the area of $600 billion — will go through Amazon. The SMB Impact Report is a celebration of the ways in which Amazon shares that wealth, but the company obviously benefits significantly from the presence of partner stores on the site. Amazon banked almost $43 billion in commissions and fees from third-party sellers in 2018, according to The Seattle Times.
The report coincides with the launch of a new website called “Build Your Business with Amazon.” It provides guidance on multiple ways to interface with the company, including the launching of a store on the platform, developing associated apps, and becoming part of their growing delivery service.
