The Amazon Effect – Why Business Should Take Advantage

A common term in today’s business world is the “Amazon effect”, which essentially means that Amazon’s online platform is revolutionizing the way companies enter the marketplace. In an instant, by listing merchandise on Amazon, sellers gain access to 300 million consumers that shop Amazon.  It’s inevitable that e-commerce is the way of the future. Here is a staggering number for reference. Businesses often capture a 30-50% sales increase by selling on Amazon. Conducting business on Amazon is a game-changer for those not already benefiting.


Convenience and price are the primary drivers in today’s purchase habits for consumers.  Amazon is a true one-stop-shop experience as Amazon U.S. offers approximately 564 million unique items on their platform.  Free one-day shipping on most products for Prime members comes in handy too.  If that’s not enough, Amazon’s platform makes it easy for consumers to price match.  This unique combination makes for a desirable shopping destination.


  1. Amazon owns approximately 250 million square feet of warehouse space.
  2. Over half of Amazon sales are attributed to 3rd party sellers.
  3. 90% of consumers price match products on Amazon.
  4. 95 million people hold Amazon Prime memberships in the United States.
  5. Amazon Prime Day 2018 grossed over 100 million product sales.


It’s easy to see why some of the most successful organizations in the world are operating within Amazon’s platform.  To start, your marketing obligation to sell on Amazon is virtually null as Amazon already attracts millions of consumers to their website every day. Materials, storage, and labor expenses related to preparing your merchandise for Amazon can easily be mitigated by outsourcing the process to an FBA preparation and warehouse service provider. Also, choosing to utilize Amazon FBA (Fulfillment By Amazon) allows for a stress-free order fulfillment process.  Amazon even provides competitive parcel and LTL transportation discounts for 3rd party sellers with USPS, UPS, FedEx, Estes, Roadrunner, and more.  This includes FBA inbound and self-fulfillment shipping.  Ultimately, the cost of entry into Amazon’s marketplace is negligible, making it easy for companies to expand their business onto the platform.

Approximately 44% of all online shoppers go to Amazon first.  Small businesses must take advantage of the hundreds of millions of consumers shopping Amazon annually.  If that isn’t convincing enough, Amazon’s Seller Central platform offers compelling data analysis for sales figures, inventory management, advertising campaigns, and overall business health.  These data points offer valuable insight into product trends, inventory gaps, advertising opportunities, and more.  Amazon is the place to be whether your business is trying to develop brand recognition or simply looking to drive additional sales. If your business is not currently selling on Amazon, it is highly likely that sales critical to future growth and sustainability are being left behind. Stampede FBA Prep can help you get started.

For a free consultation, fill out the contact form here.

Posted in