New Report Shows Amazon’s Positive Impact on Small and Medium Businesses

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Report Shows Amazon's Impact on Small and Medium Businesses
Report Shows Amazon's Impact on Small and Medium Businesses - Photo by TONY BYRD via blog.aboutamazon.com
Report Shows Amazon's Impact on Small and Medium Businesses
Report Shows Amazon’s Impact on Small and Medium Businesses – Photo by TONY BYRD via blog.aboutamazon.com

About 1.9 million U.S. businesses use Amazon products and services to reach a larger customer base and sell their products.

A new report suggests that small- and medium-sized businesses account for more than half of Amazon’s current sellers — up by 30 percent 10 years ago.

“That’s just one measure of the success small businesses are achieving by working with Amazon,” wrote Jeff Wilke, Amazon Worldwide Consumer CEO. “This second annual SMB Impact Report takes a deeper look at how small businesses are benefiting from Amazon’s tools and services. The results are striking: SMBs selling in Amazon’s stores have created an estimated 1.6 million jobs worldwide. Developers have built more than 90,000 Alexa skills. Hundreds of thousands of authors from around the world have self-published millions of books through KDP. Many of them are building incredibly successful writing careers as a result. In 2018, thousands of independent authors earned more than $50,000, with more than a thousand surpassing $100,000 in royalties.”

Small business impact

The report suggests that Amazon’s impact to small business accounts for the creation of more than 1.6 million jobs in small businesses worldwide in 2018, up from 700,000 in 2017. Notedly, about 200,000 small and medium businesses surpassed $100,000 in sales in Amazon stores, according to the report.

“In 2018, more than 25,000 small and medium businesses worldwide surpassed $1 million in sales in Amazon stores, up from more than 20,000 in 2017,” the report suggests.

Amazon has also helped some of the small businesses its partnered with by loaning more than $1 billion in 2018 to help support their Amazon stores. The report states that the fastest-growing small and medium businesses were in Maine, Nebraska and Mississippi in 2018.

Amazon is also helping grow delivery businesses, giving entrepreneurs the opportunity to start their own businesses. The Delivery Service Partner program helps these aspiring business owners by partnering with individuals to deliver Amazon packages. Some of these business owners in the Delivery Service Partner program have seen as much as $300,000 in profits.

Kindle Direct Publishing, authors

Kindle’s Direct Publishing is also helping aspiring authors reach new readers.

“Kindle Direct Publishing enables authors to publish and distribute their books to millions of readers around the world, choosing where they want to sell setting their own prices and earning up to 70 percent of every sale in royalties,” the report states. “Since launch in 2007, hundreds of thousands of authors from around the world have self-published millions of books through KDP, many of whom are building incredibly successful writing careers as a result.”

In 2018 authors using KDP earned more than $260 million from the KDP Select Global Fund. Many surpassed $100,000 in royalties using KDP.

 

Read the full report at Amazon

 

Source: blog.aboutamazon.com

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