How the business makes money from business.

When we at General Soft talk to a client about e-commerce, we often hear comparisons with market sharks such as Amazon or eBay. But market leaders are not the whole market yet. Especially when you consider that the largest sites are making their impressive profits thanks to regional online shops or local producers without a global market. If you are not ready to fight with leaders - join them. What should we learn from the best?

The wider the choice, the greater the demand

According to Statista's analytics platform, Amazon is the leading platform in the U.S.: 56.1% of American visits come from this website.

The company's net sales in 2019 amounted to 280.5 billion dollars. And yes, most of this amount is generated by third-party vendors. So, according to last year's results, the electronic retailer received 53% of sales of third-party products, not its own production.

Thus, the company, in fact, for the webspace and its name makes a profit. In 2018, the brand has earned 42.75 billion dollars exactly from the sales of third-party brands. At the same time, some brands, according to the analysis, generate 81-100% of their profits through the site with minimal investment.

Thus, in 2018, more than 200 thousand companies have earned profit through the site in excess of $100,000, and about 50 thousand companies have earned and more than $500,000.

 At the same time, 37% of third-party vendors are not even ready to enter new sites within a year - so great are the prospects for the global giant of commerce in the network.

How could Amazon get such popularity (and profit)?

  1. The market leader today can be proud of not only the developed worldwide sales network but also of the successful implementation of digital market trends. For business are very relevant opportunities provided by the platform: integration with retail outlets, sales automation system, a wide range of online tools.
  2. Increased demand for online sales through the platform through the diversification of access tools. Today, Amazon is not only a sales platform but also an impressive selection of gadgets: from the Fire multimedia wand to smartphones and tablets.
  3. The more they offer, the more they get. Amazon's general-purpose tools make it as easy as possible for businesses to create applications for sales through the platform. Thus, the system actually "binds" its third-party vendors to the technical solutions.
  4. Systems for selling goods. A flexible sales system allows you to sell goods to manufacturers both on behalf of the brand and the company itself. This allows firms to ensure the maximum flow of orders at the first stages, and, in the future, to gain loyalty already to their name.
  5. Amazon computing capabilities. Today’s marketplace provides its computing and operational capabilities to all customers: data migration, storage, AWS cloud, 12 different analytics systems. Machine learning and other "tricks".
  6. Ubiquitous availability. Marketplace coverage areas include 69 regions around the world. And they develop at the speed of light.

Growth of new vendors on the platform by region of operation.

Join or learn.

Today, Amazon is the world leader in brand value, and each user can conclude for himself why.

Value of global brands in millions of dollars

Do you want to reach the same heights? We can help you to develop your own, unique and modern e-commerce platform, or prepare solutions for integration with the shark reseller market directly to your business objectives. Find out what trends are currently most in demand on the e-commerce market in our next article.

We are ready to implement all modern solutions exactly in your software product. Please contact our technical experts right now for advice or individual calculations of your project!

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