Seller spotlight: Amazon knows you saw estimates it generated $10+ billion in revenue from Prime Day 2020. Now, it wants to (appear to) spread the wealth.
- $10 credits for the first $10 spent at 300,000+ small businesses in the two weeks before Prime Day.
- 10% back on Amazon credit card purchases made at small businesses before and during Prime Day.
Keep in mind, shoppers found third-party sellers—most of which are small- and medium-sized businesses—without a PR push last year. They generated more than $3.5 billion in sales during Prime Day 2020—a nearly 60% increase from 2019’s event, and more growth than what Amazon proper recorded. In Q1 2021, third-party sellers made up 55% of Amazon’s $108.5 billion in revenue.
Bundle deals: All those small sellers are fueling a new economy of Amazon roll-up enterprises.
Startup Perch last week landed $775 million in funding to buy up third-party sellers, while Thrasio, the leader in the space with a ~100-brand portfolio, has raised $1.75 billion since it was founded in 2018. For comparison, more than 10 companies with Amazon-brand ambitions together raised roughly $1.5 billion over the 24 months ending in November 2020, per Forbes.—HL