Amazon: How Small Businesses Find Success on Amazon
On November 26th, 2019, Amazon announced the winners of its “U.S. Small Business Spotlight Awards”. Out of the 1,300 nominated American small businesses, 18 finalists remained with 6 in each category. Placing first in ‘Small Business of the Year’ is a Bellevue-based, dairy-free creamer company called ‘nutpods’. The fast-growing brand launched nutpods on Amazon in mid-2015. Since then, the company has grown into 24 employees and has enjoyed a sales growth of 5,500% in Amazon stores. Nestled in at first place as “Woman-Owned Small Business of the Year”, is ‘1818 Farms’, a Mooresville Alabama-based company that founded its name from the year Mooresville was established. 1818 Farms is a multifaceted company that produces hand-woven pillows, events held for special occasions, garden parties, signature coffees and more, all based on the values of farm life. And preceding its competition, ‘Habit Nest’ takes the cake as “Small Business Owner Under 30 of the Year”. Habit Nest is a Los Angeles-based company who define their brand as “Your Home
for Building Healthy Habits”. The business has created more than 10 detailed journals cultivated by experts, and published scientific studies. All of which are focused on self-improvement. As Amazon celebrates these victors in the press release, it proclaims that 1818 Farms, Habit Nest, and nutpods all represent ideal small business success in the massive e-commerce market. Taking it a step further, Amazon also includes the major successes small businesses have enjoyed with Amazon Storefronts. In October, Amazon Storefronts exceeded 2.5 million products from nearly 30,000 brands. Amazon Storefronts is a one-stop-shop embracing many unique small and medium business (SMBs) products. 70 million distinct customers purchased more than 250 million items in the storefronts in the last 12 months alone. Amazon stores account for the U.S.-based SBMs to sell over 4,000 items every minute on average. Third-party sellers, in essence, SMBs, accounted for 58% of all physical merchandise sales for Amazon in 2018. But Amazon doesn’t stop there. SBMs are thriving through an assortment of Amazon’s features including the 90,000 (and counting) Alexa skills, self-publishing from Kindle Direct Publishing, Amazons e-book broadcasting unit, and the creation of over 1.6 million jobs worldwide (830,000 U.S. jobs) with Amazon stores because of SMBs.