Amazon revenue from 3rd party seller sales grew to £17.1bn ($23.7bn) in Q1 2021, up 64% from the previous year. Marketplace revenue has grown considerably faster than Amazon’s own online sales.
Since 2018 UK Online Stores has been tracking sellers on the Amazon UK marketplace. Here we focus on the sellers pandemic performance, between Dec ’19 & May ’21, as they coped with disrupted supply chains and in some cases surging demand.
Sellers Performance before the Pandemic
In December 2019 UK Online Stores had identified 154,000 sellers on the Amazon UK marketplace. 35,119 sellers had registered but still had zero sales. 53,442 sellers had less than 500 sales*. 42% of sellers (65,291) had greater than 500 sales.
34% of sellers on the Amazon UK marketplace were from China, with the UK representing the next largest country with 20%.
Home & Kitchen, Electronics & Photo and Clothing each had 8% of sellers as their main product category listing. Health & Personal Care and Beauty were the next largest group of sellers with 6% each.
22,027 sellers still have zero sales on the Amazon UK marketplace, down from 35,119 in Dec ’19. This means that at least 15K sellers who were registered in Dec ’19 have started selling.
53,004 sellers still have less than 500 sales from the Amazon UK marketplace, however 51% of sellers (79K) now have 500+ sales, up from 42% in Dec 2019.
100% Growth in Sales
With the pandemic changing the way we live & work it’s no surprise that Amazon sellers performance has varied depending on the type of products sold. 2566 Amazon sellers have seen their sales increase 100% during the pandemic. Sellers in categories Home & Kitchen, Health & Grocery have been the best performing.
22% of sellers with >100% growth in sales during the pandemic have come from the Home & Kitchen category. 308 sellers (12%) are in the Health category and 229 sellers (9%) of those doubling sales are in Grocery.
Only 4% of the largest growing sellers are within the Clothing category.
During the pandemic people have obviously been concerned about their health and focused on improving the environment around them i.e. their homes. This is reflected in the performance of sellers on the Amazon UK marketplace during this pandemic.
Sellers in Amazon’s Health Category
In December 2019 there were 2053 sellers with 500+ sales and selling most of their products in the Health category. By May 2021 27% of these (546 sellers) had increased their sales by at least 50%. 648 sellers (32%) had increased sales between 10 to 50%.
Obviously some of the largest growing sellers in the Health category were selling PPE and other pharmacy related products. The table above shows some sellers with 1000%+ increase in sales during this pandemic period.
As highlighted some were using fulfilled by Amazon (FBA) to deliver products, however, this was not critical for all these sellers to help achieve a hugh growth in sales.
British Sellers on the Amazon UK Marketplace
34% of GB sellers on the Amazon UK marketplace offer at least one product via FBA, fulfilled by Amazon. Almost 3,000 GB sellers have 10+ products offering Amazon Prime delivery.
Home & Kitchen (18%), Health (14%) and Toys & Games (9%) are the largest categories with sellers offering products using FBA.
For GB sellers with their own private label the main category is again Home & Kitchen (19%) but followed by Clothing. 10% of GB private label sellers come from the Clothing product category.
It is clear that the pandemic has changed the performance of many sellers on the Amazon UK marketplace. Some GB sellers within the Health category have performed particularly well and there is a focus on products within the Home & Kitchen category as consumers are spending more time at home.
To download free sample leads on GB sellers on the Amazon UK marketplace click here.