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May 31, 2021

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Amazon vs Small Businesses

Amazon:

It is a company that provides its services throughout the world via the internet, created by Jeff Bezos in 1994. The company launched its products in 1994. In 2000 they provide their marketplace to allow others to sell their products on amazon.

Services offered by Amazon:

Following services are provided

  • Online Retailer
  • Manufacturing of E-Books readers
  • Web Services
  • A platform for the third party to sell their products

Small Businesses:

According to US Census, small businesses are those which have less than 500 employees.

According to HealthCare.gov the businesses having less than 50 employees are known as small businesses.

Some say that businesses having a profit of less than 1million per year are known as small businesses.

Small businesses produce their product in a particular area and their sale is also restricted to some limited area.

Is Amazon destroying Small Businesses?

It is one of the biggest companies in the world these days and its growth is increasing day by day, which will take control of other businesses. Whenever others launched something on Amazon, they manufacture their product like them and launch it to market at a lower price. So their business is depleted and at last destroyed, because no one can compete with it. Other companies will have to use other web services for their promotion, for example, Google or Facebook, etc. which cause them heavy cost but it has its web services and can promote these products easily.

On other hand, it provides a platform for small and medium businesses to sell their products. Small businesses can boost their sale throughout the world using its services. It has 1.7 million registered small and medium businesses. More than 80% of buyers are more likely to buy products from it, so it provides almost 80% of buyers throughout the world.

Is Amazon killing small businesses?

Those businesses which manufacture their products and distribute within a small radius and cannot present a product to the whole world can be destroyed by Amazon.

Whereas those small businesses which manufacture products and present it to the whole world through the internet can boost their sale and Amazon provide the best platform for such businesses.

In 2019, the selling rate of small businesses is boosted by 30% due to online businesses.

What percentage of small businesses on Amazon have?

Small and medium businesses make up 58% of Amazon’s sales, with over 1.5 million registered on the platform. Amazon helps these businesses grow and reach more customers through its e-commerce platform. This shows the significant role of small and medium businesses in Amazon’s success and how Amazon supports entrepreneurship and commerce.

List of small businesses on Amazon:

Following are some small businesses that sale their products on Amazon

  • The Red Cottage Furniture Store
  • Woolen Bloom
  • Chakra Bracelet
  • The Cashmere Choice
  • Jaques of London
  • Cuddlesome
  • Babybear
  • Truly Unique

Small businesses during a covid-19 pandemic:

The COVID-19 pandemic had a devastating impact on small businesses, with nearly 25% of them closing their doors permanently. However, some small businesses were able to survive and even thrive by pivoting to online sales. Amazon provided an excellent platform for small businesses to sell their products online, and as a result, nearly a million small business accounts were registered on Amazon in the past year alone. This shows the importance of e-commerce platforms like Amazon in helping small businesses adapt to the changing business landscape and stay afloat during difficult times.

Amazon Vs Small Businesses

In recent years, there has been a growing concern about the impact of e-commerce giants like Amazon on small businesses. Many small business owners feel that Amazon’s dominance in the online marketplace has made it harder for them to compete and survive.

This is because Amazon’s vast resources and economies of scale allow them to offer lower prices, faster shipping, and better advertising than most small businesses can match. As a result, some small businesses have been forced to close, while others struggle to stay afloat.

However, there are also arguments that Amazon provides a platform for small businesses to sell their products to a global audience, and that the company’s success can ultimately benefit the broader economy. There is a list of small businesses on Amazon

Nonetheless, the debate around Amazon vs small businesses continues to be a contentious issue in the world of e-commerce and beyond.

 

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