Amazon says more than 1 million small- and medium-sized businesses sell on its third-party marketplace, offering another level of detail about an increasingly important line of business for the retailer.
Amazon says more than 1 million small- and medium-sized businesses in the U.S. sell products through its online bazaar, offering another level of detail about an increasingly important line of business for the retailer.
The Seattle company rents space on its retail website to third-party sellers, offering them shoppers’ eyeballs in exchange for a cut of any sale. Such sales by outside vendors accounted for about half of the total items sold on Amazon in the last year.
Two years ago, Amazon had disclosed that it had more than 2 million sellers on the platform worldwide.
Amazon’s disclosure on Thursday, timed to Small Business Week, comes as the company’s impact on the global economy and competing retailers remains a subject of widespread debate. Among President Donald Trump’s recent Twitter salvos aimed at the company was the contention that Amazon was contributing to the closure of brick-and-mortar retailers, long a sticking point for critics of the company amid the broader shift to online retailing.
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The company on Thursday also gave state-by-state tallies of small-business sellers active in the U.S. The most, 175,000, were located in California, followed by New York, at 81,000, and Florida’s 75,000. Washington was home to about 27,000.
Amazon says its tally includes sellers who sold less than $7.5 million on the platform annually, a definition designed to line up with U.S. Small Business Administration guidelines.