Amazon Third-Party Sales vs. First-Party Sales

Third-party salesFirst-party sales
19993%97%
20003%97%
20016%94%
200217%83%
200322%78%
200425%75%
200528%72%
200628%72%
200729%71%
200830%70%
200931%69%
201034%66%
201138%62%
201242%58%
201346%54%
201449%51%
201551%49%
201654%46%
201756%44%
201858%42%

Since the late 1990s Amazon started to enable third-party stores to sell on the platform. This strategy enabled Amazon to improve the variety, reduce prices and further expand into more categories.

As Jeff Wilke, CEO, Amazon Worldwide Consumer highlighted:

Amazon’s mission is to be Earth’s most customer-centric company. Among the customers we’re focused on are small businesses and entrepreneurs. As we work to help them grow their businesses, we are making big investments: in our delivery network, data centers, AI research, robotics. Since 2011, we’ve invested tens of billions to help SMBs succeed working with Amazon. Amazon is inspired by the type of courage and inventiveness that makes entrepreneurs tick. And our customers benefit from the products, books, videos and skills they produce. We salute the millions of entrepreneurs, creators, and developers around the world whose impressive efforts are summarized in this report.

amazon-third-party-sellers-business
how-does-amazon-make-money
Amazon has a diversified business model. Amazon’s primary revenue streams comprise its e-commerce platform, made of Amazon labeled products and Amazon third-party stores. In addition to that, Amazon makes money via third-party seller services (like fulfilled by Amazon), advertising on its platform, AWS cloud platform, and Prime membership.

All you have to know about Amazon: 

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Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"