Why
it matters:
- More than 60% of sales on Amazon are made by independent, third-party sellers, most of them small and medium-sized businesses.
- U.S. independent sellers sold 4.5 billion products on Amazon in 2023 and had average annual sales of more than $250,000.
- More than 500,000 independent sellers worldwide are already using the new AI tools Amazon is offering.
E-commerce
giant Amazon
decided almost 25 years ago that a quick path to growth was to think
small — and to invite independent, third-party sellers, most of
them small and medium-sized businesses, to sell on its platform.
Those
independent sellers now generate nearly two-thirds of the sales made
on Amazon. And Amazon is looking to grow those sales with new tools
for small business sellers.
At
Amazon’s annual Accelerate
conference in September, Amazon Store CEO Doug Herrington unveiled a
number of tools to aid small and medium-sized sellers, including
tools they can use even when selling goods on other platforms.
Natalie
Angelillo, Director of External Relations at Amazon, spoke with CO—
about the new ways Amazon is helping small sellers during the holiday
season and why Amazon believes helping small merchants sell more on a
variety of platforms is a smart strategy.
Angelillo,
whose job involves meeting Amazon sellers and small business owners
at events around the country, said she often meets new sellers who
say they decided to sell on Amazon because they first experienced the
platform as customers.
“They
understand that the investments that Amazon’s made in the customer
experience, in protecting the customers and the brand value, are
transferable to those small businesses that want to sell on Amazon,”
Angelillo said.
“The
trust consumers have in Amazon — it’s more important than ever
these days as more and more places proliferate to sell,” she said.
[Read
more: Amazon Exec on How New Services Solve Its Small Business Sellers’ 3 Biggest Pain Points to Unleash Growth]
Amazon’s
AI-powered dashboard yields ‘critical’ marketing tools and data
insights
One
of the new tools sellers are using this holiday season is the Next
Generation Selling Experience interface, which was designed with a
focus on helping new businesses get started selling.
“It’s
a new modernized interface that gives them a personalized dashboard
that has critical data and insights that are relevant to them and
their business,” Angelillo said. “So when you’re busy and
you’re about to go through your first holiday season or maybe your
tenth holiday season, and there’s 8 million things to think about,
having a dashboard that gives you a set of insights that are tailored
specifically to what you’re worried about or you want to focus on
is really beneficial as sellers [handle] the holiday rush,” she
said.
At
Accelerate, Amazon announced a number of AI-powered tools, including
A+
Content,
which generates AI-driven product recommendations and helps sellers
easily enhance their product images or brand storylines to draw
customers.
[Read
more: How Artificial Intelligence (AI) Is Changing How Marketers Sell Everything From Food to Fashion]
‘It’s
going to help SMBs craft instantaneous business plans’
Amazon
also unveiled a generative AI-based sales assistant codenamed Project Amelia
that is available round-the-clock to answer questions and provide
data that helps sellers better manage their businesses.
“It’s
really your business partner in your pocket,” Angelillo said,
describing Project Amelia as a tool that will give sellers
“super-charged, personalized insights.”
“It’s
going to help [sellers] craft instantaneous business plans to respond
to different shifts they may be making in their business,” she
said. “They can ask it, ‘I’m interested in going into this
product line, does that make sense for me?’ or ‘Should I
participate in this holiday event?’”
[Amazon is focusing on] helping sellers grow their business no matter where they chose to sell — whether that’s adding a Buy with Prime button to their website or helping with their logistics.
Natalie Angelillo, Director of External Relations at Amazon
The
new AI tools are “designed to save sellers time, and to simplify
the selling process for them so they can focus on other aspects of
their business,” Angelillo said.
Over
500,000 sellers have tried the new AI tools already.
Angelillo
said she has seen a marked increase over the past year in the use of
AI tools, and the enthusiasm for them, on the part of small business
sellers.
“I
would say 100% of the sellers I’m talking to now are really
enthusiastic,” she said. “I think they’re actually starting to
see the possibilities for it.”
“I
think people are becoming more comfortable with the idea that you are
not necessarily relinquishing any kind of control. It’s a partner.
It’s a way to help you do the easy things or the repetitive things
or the things that take a lot of time,” Angelillo said. “It’s a
way to do those things quickly so that you can focus on the things
you love to do as a business owner.”
Expanded
supply chain and fulfillment tools for small businesses
Amazon
also announced
at Accelerate that it is expanding the use of its supply chain
and fulfillment tools so sellers can use them when they make sales on
their own websites, or on social media or other marketplaces.
Amazon
also expanded its Buy with Prime
option, which lets merchants add a Buy with Prime button on
non-Amazon sites.
“We’ve
spent a lot of effort and investment and time and focus on making
sure that our sellers have the opportunity to be very successful
selling in our store,” Angelillo said. Now, she said, Amazon
is focusing on “helping sellers grow their business no matter where
they chose to sell — whether that’s adding a Buy with Prime
button to their website or helping with their logistics.”
“We
understand the value of helping small businesses grow globally and we
understand what that does for communities across the U.S.,” she
said.
“Sellers
last year — just their Amazon business alone — generated 1.8
million jobs. And if collectively we can increase that, because
they’re hiring more and they’re returning more of that economic
value to their local communities, I think we all win,” she
said. “When other businesses in those communities see that
prosperity — not just for the sellers but for their community as a
whole — that’s when the light bulb goes on for them. They’re
excited to build their own business, and they see that it’s
possible for them too.”
CO— aims to bring you inspiration from leading respected experts.
However, before making any business decision, you should consult a
professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
CO— Exclusives: Insider Strategies
How the buzziest brands and hottest startups are solving today’s biggest business challenges. CO— brings you advice from startup founders and top executives for thriving in a new world.
Published
Joan Verdon
