💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Amazon says Exclusives store sales top $50 million in first year

Published 01/28/2016, 06:03 AM
Updated 01/28/2016, 06:10 AM
© Reuters. A box from Amazon.com is pictured on the porch of a house in Golden
AMZN
-

SAN FRANCISCO (Reuters) - Amazon.com Inc (O:AMZN) said that sales on Exclusives, its platform for products not available anywhere else, topped $50 million in less than a year since its launch and the site includes more than 120 brands, the first time it has disclosed the data.

The sales represents a tiny fraction of those on Amazon's third-party marketplace platform, which allows other merchants to sell on Amazon's site. Third party merchants account for roughly 40 percent of Amazon's total site sales.

But Amazon said the store serves as an important avenue for the retailer to get first dibs on new products that could be the next best-seller on the marketplace platform.

It is also part of Amazon's effort to target niche shoppers through stores like Handmade, which offers hand-crafted items, and Launchpad, which sells crowd-funded products.

Now the company plans to expand the site, which lists 10,000 products including a bluetooth-enabled "smart bag," although it did not provide details.

"We do expect the broadening of the product categories and geographical expansion," said Peter Sauerborn, director of business development at Amazon who leads the store.

In order to be listed on the site, brands agree to let Amazon be the exclusive third-party retailer for their products.

In exchange, merchants gets access to the Fulfillment by Amazon program, which refers to the company's global network of warehouses and its fast shipping and loyalty program, Prime.

"There's a whole new group of consumers (the third-party retailers) can draw to Amazon," said Seattle-based Christine Boerner, who runs Cielo, which sells fashionable metallic pillholders through Exclusives.

At the same time, rival shopping sites are also investing in one-of-a-kind merchandise. EBay Inc is returning to its roots by focusing on unique merchandise sold by smaller sellers.

An increasing number of Amazon's third-party merchants are drawn to Amazon's fulfillment program. Active merchants using it grew more than 50 percent last year and delivered more than 1 billion items worldwide, the company said.

Stephan Aarstol, founder and CEO of San Diego-based Tower Paddle Boards who was connected to Exclusives on the TV program Shark Tank, is an example of why merchants might be interested in Amazon's fulfillment program.

© Reuters. A box from Amazon.com is pictured on the porch of a house in Golden

Aarstol said he shipped "several hundred" paddle boards to Amazon's warehouse in the United Kingdom late last year and he expects his merchandise to be available to shoppers across Europe for fast delivery, something he could not have done on his own.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.