This blog was updated on February 22, 2024.
Amazon has released its Q4 2023 financial report, announcing record profits that surpassed expectations. Total GMV for the retail giant, including 1P and 3P sales, is now an estimated $750 billion.
Among the most eye-catching details of the report is the growth of Amazon Ads. In 2023, Amazon reported $49.9 billion in revenue generated through advertising sales worldwide, a 24% YoY increase.
Amazon’s latest earnings report is good news for brands. Ready-to-spend customers continue to flock to the marketplace in record numbers – with no signs of slowing down. To highlight Amazon’s role in the future of ecommerce, we’ve compiled ten additional statistics that sellers need to know in 2024.
1. Amazon is the most visited ecommerce website in the U.S.
Amazon consistently attracts more than 2 billion monthly visitors, making it the most trafficked ecommerce website in the U.S. Coming in second is eBay, followed by Walmart. (Source: Statista)
2. Amazon has 230 million Prime Members worldwide.
In April 2021, Jeff Bezos announced in his annual letter to shareholders that Amazon’s Prime membership program had crossed the 200 million subscriber milestone. Since then, numerous analysts report Prime membership has increased to 230 million. (Source: Yaguara)
3. Amazon Third-Party Marketplace Sales reached $480 Billion in 2023.
Amazon 3P sellers set a new record in 2023, generating $480 billion in sales – a 13% increase from 2022. The third-party marketplace is responsible the bulk of Amazon’s incremental GMV, which is an estimated $750 billion. (Source: Marketplace Pulse)
4. Amazon Prime maintains over 97% customer retention.
Amazon Prime members are loyal. In Q1 2023, Amazon Prime had a 30-day trial after which 72% of users subscribed to the service. Moreover, 97% of Amazon Prime members renewed their membership for another year, and 99% renewed it for a second year over the first three months of 2023 (Source: Statista)
5. Amazon Prime Video has more than 175 million unique viewers.
The number of Amazon Prime Video users worldwide surpassed 302.9 million in 2023. This growth is due to the company’s increased focus on original programming and exclusive content. (Source: Insider Intelligence)
6. Amazon sells over 600 million products on its marketplace.
As of 2023, there are over 600 million products listed on the Amazon marketplace, not including books, media, and services. This includes 12 million sold by Amazon, meaning the vast majority of products are listed by 3rd– Party sellers. (Source: AMZ Scout)
7. Amazon accounts for 37.6% of the U.S. ecommerce market.
Amazon claimed the top spot among online retailers in the U.S. in 2023, capturing 37.6% of the market. Walmart came in second with 6.4%, followed by Apple with 3.6%. (Source: Statista)
8. Over 50% product searches begin on Amazon.
According to Jungle Scout’s most recent Consumer Trends Report, Amazon is the most popular search destination for shoppers, with 51% of customers starting their product searches on Amazon. (Source: Jungle Scout)
9. Prime members spend about $1,400 per year on Amazon.
Amazon Prime members in the U.S. spend and average of $1400 per year on Amazon. By comparison, non-Prime members spend only $600 per year. (Source: Statista)
10. Brands grow sales an average of 20% year-over-year on Amazon.
According to Amazon’s latest U.S. Small Business Empowerment Report, brand owners in the U.S. grew sales over 20% year over year in Amazon’s store in 2023. In total, these independent sellers sold more than 4.1 billion products in Amazon’s store and exported over 260 million products. (Source: Amazon)
Channel Key Takeaway
There is no question that Amazon remains the king of ecommerce in the U.S. The statistics detailed above underscore not only the importance of having a presence on Amazon, but also just how competitive the marketplace has become – both of which are prerequisites for successful Amazon Account Management. If these insights are any indication of where Amazon is heading in 2024, ecommerce brands have a good reason to be optimistic.
