34% of Amazon’s Earnings Come From Third Party Sellers?
Claims made by a new study indicate that some 34% of Amazon’s earnings are from third-party sellers – making far more from fees than its cash cow known as AWS.
Here’s the report “Amazon’s Toll Road“ by the Institute of Local Self-Reliance.
ISLR researches make two primary claims:
- Amazon will bring in 121B (34% of sellers’ total revenue) from sellers in the form of fees and advertising payments. Twice the estimated $60 billion from 2019, which at the time was 31% of seller revenue.
- The second claim made by the report states Amazon’s using creative accounting to mask the enormous revenues generated by seller fees, grouping the huge profits of the Marketplace division with enormous losses incurred in building their shipping infrastructure.
Quote: “Drawing on analysts’ estimates of the margins Amazon likely earns on seller advertising and other seller fees, we find that Marketplace may have generated operating profits of $24 billion in 2020 — significantly more than the $13.5 billion in profit that Amazon reported for AWS.
AWS has long been seen as Amazon’s cash cow. But this report finds that the tech giant has a second cash cow, which it keeps quietly out of view.”
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Facebook Adds Shops in Groups
Facebook’s expanding its eCommerce push with the addition of a range of shopping and product discovery options in groups.
The biggest addition is Shops in Groups – in other words, you can add a Shop within your Facebook Group display.
You’ll see a new ‘Shop’ tab in your navigation and items featured in a separate panel within the group feed when a shop is available.
Facebook hasn’t yet declared any specific revenue cuts to the merchants. Whom will be able to advertise group branded items.
Product recommendations are being added to tap into community expertise and help group members find relevant items.
Plus there’s going to be a Top Product Mentions alert in main user News Feeds displayed to people who are members of related groups.
BFCM – Consumer Spend Fails to Impress on Black Friday 2021 ☹️ — Read more
META…VERSE – The Metaverse Explained 🥽 — Read more
TEAMS – Understanding Employee ‘Attachment Styles’ Helps Managers Build More Cohesive Teams ❤️ — Read more
SURVEYS – ✔️4 Ultimate Survey Tips for Customer Insight — Read more
SHOWERTHOUGHTS – “Millions of people wake up at the exact same second from using their cell phone as an alarm clock.” /u/apworker37
FEATURED STM THREAD: How Many Hours Do You Work Everyday?
We have had an interesting discussion running on the STM Forum for the past 2 weeks or so. The opening question was simple: “How many hours do you work every day?”
But the answers were quite diverse, so to speak 🙂 Some members say they only work when needed, some work like mad, some are not even sure what still qualifies as work… Does reading and educating yourself still qualify?
And recently, the thread took an interesting turn. An 18y.o. member just jumped in, saying he already hates his current 9/5 job and seeks the freedom that affiliate marketing can provide. But what about education? Should he finish college first or dive into affiliate marketing straight away?
Some members think that the current education model is irrelevant for this digital era, but some members still see value in it. So what’s your take on the topic? And how much do YOU work a day?
Stay tuned for the next edition of MRKTRS WKLY.
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