2016 the year of the seller: more than 2 billion items sold through Amazon Marketplace
Amazon has announced that in 2016, through its Fulfilment by Amazon (FBA) service, the company delivered more than 2 billion Marketplace items worldwide.
In a “record breaking” year for the company, according to economic studies Amazon Marketplace has enabled over 600,000 new jobs outside of Amazon.
“Sellers are choosing Amazon because we help the build and grow their businesses,” says Peter Faricy, VP for Amazon Marketplace.
And the success of the Fulfilment doesn’t stop there.
“As a growing business and brand owner, the Amazon Exclusives and FBA programs helped us accelerate our business to achieve more than 100 percent growth in sales this year,” said Ben Arneberg, co-founder of Willow & Everett.
“The FBA service handles the work of packaging and shipping orders to customers, which gives us the time to create new products that customers will love. We had our most successful Black Friday and Cyber Monday ever, and on Prime Day earlier in the year our sales boomed more than 10x compared to last year.”
What is Amazon Marketplace?
Amazon Marketplace is a platform that enables users to sell new, used, collectable and refurbished items – alongside Amazon’s new items. Marketplace is a global platform, allowing sellers to list items and make them accessible to millions of Amazon customers the world over.
Fulfilment by Amazon?
Fulfilment by Amazon (FBA) is a service that makes sellers products available to customers all over the world, all the while using the world class fulfilment, fast shipping and acclaimed customer service that Amazon can offer.
Sellers that enable FBA will also have their products eligible for Amazon Prime.
2016 – a big year for FBA & Marketplace milestones
Amazon FBA delivered than 2 billion items worldwide, with active sellers using the FBA service growing by more than 70 percent.
Sellers from more than 130 different countries around the world fulfilled orders to customers in 185 countries, with sellers on Amazon who reached $100k in sales growing by 30 percent.
During the Holiday Season, sellers worldwide received more than 28 million orders on Cyber Monday, while FBA items shipped worldwide grew more than 50 percent year over year during the holiday season.
Other highlights for Amazon in 2016 included the expansion of Amazon Mexico, which enabled more than 20,000 domestic and international sellers to add more than 50 million products offers available to Mexican customers.
Sellers over at Amazon Canada achieved an astonishing $1billion in sales.
The Pan-European FBA program was rolled out, allowing sellers to build their international business by selling across all Amazon European Markets while shipping inventory to just one destination.
Amazon hosted more than 300 women-owned businesses in Seattle for the first-ever Amazon Marketplace Women’s Entrepreneur Conference.
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Cainiao Network Launches Customer-Centric Logistics
As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.
Who Is Cainiao?
According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00.
For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’.
What’s Part of the Upgrade?
Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments:
- Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions.
- Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture.
- Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency.
- Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311).
Where is the Company Headed?
From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’.
Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’.