Amazon vs Small Businesses


Amazon 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 by amazon

  • 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 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?

Amazon 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 ata lower price. So their business is depleted and at last destroyed, because no one can compete with Amazon. Other companies will have to use other web services for their promotion, for example, Google or Facebook, etc. which cause them heavy cost but amazon has its web services and can promote these products easily.

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

There are more than one and a half million registered accounts of small and medium businesses on Amazon, which makes about 58% of sales on Amazon.

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:

Almost 25% of small businesses closed their doors during the pandemic, and those who survived and pivoted to online sales boost their business. Amazon provides the best platform for online sales, due to which nearly a million small business accounts were registered last year.