There are more than 5 million sellers on the Amazon platform, and more than 3,000 new sellers add daily. But despite it is 2 million or 5 million sellers, there is a truth that not all of these sellers can sell well.
According to market research site MarketplacePulse, 25% of total product sales (GMV) on the Amazon platform come from the top 1000 sellers. In other words, the 1,000 companies created a 25% GMV on the Amazon platform.
More than 6,000 sellers created more than half of the GMV, the top 10,000 Amazon sellers accounting for 57% of the GMV.
This is done by firstly calculating the total number of seller feedback comments and then calculating the corresponding percentage of top sellers. The resulting distribution shows that while there are millions of Amazon sellers, most of the sales are made by the first few thousand sellers.
This distribution is even more compact on Amazon's international marketplace – the top 1000 Amazon sellers in Germany accounted for 38% of the total number of reviews, Japan Top 1000 sellers accounted for 39%, and the UK Top 1000 accounted for 41%.
At eBay's 2016 Q4 earnings call meeting, eBay Chief Financial Officer Scott Schenkel said: "80% of our GMV is generated by B2C sellers with annual sales of more than $ 10,000 and the remaining 20% of GMV is generated by sellers who is selling less than $ 10,000 a year. "Amazon did not make a similar explanation.
The implication behind the Scott Metrics is that millions of one-time sellers account for 20% of GMV on eBay, and most of them come from only a small percentage of commercial sellers.
to sum up
Undoubtedly, the goal of any e-commerce platform is to have as many sellers as possible, regardless of the size of the seller.
However, the 80/20 rule, the Pareto principle indicates: "In many cases, about 80% of the effects are caused by 20% of the causes, for example, 20% of the population has 80% of the wealth, 20% of employees create 80% value, 80% gain from 20% merchandise, 80% profit from 20% customer, and so on. "
From an intuitive point of view, this also applies to the e-commerce platform, and the data seem to prove that. "