Just a few weeks ago, Amazon published its 2021 results report, in which it can be seen that it continues to be one of the most successful Marketplaces in the sector, because Amazon sales in 2021 were 390 billion dollars, which which represents a growth of 30% compared to the previous year, thus reaching a new record in sales.
Amazon Gross Merchandising Volume: What is it and what does it tell us?
Gross Merchandising Volume (GMV) is the metric that measures the value of products or services sold on an internet platform within a given period of time. In the case of Amazon, this figure is made up of the total sales invoiced within Amazon Retail and Amazon Marketplace, which reached a total of 600 billion dollars in 2021, generating a growth of 22% compared to the year former.
This figure also allows us to see how fast Amazon has managed to grow in the last 3 years in relation to its sales, since if we compare the GMV of 2021 vs. 2018, it can be seen that Amazon has achieved an increase of more than double with respect to to that year. Since its GMV went from $277 billion to $600 billion. This makes it possible to highlight even more the power that the company has to generate results that are very difficult to replicate by other competitors.
Amazon Marketplace Sales and their impact on GMV
Now that we know what GMV is, it is important to understand how Amazon Marketplace sales have been the main reason why the company has been able to generate such important results in recent years. As previously mentioned, during 2021, Amazon Marketplace billed a total of 390 billion dollars in products sold by third parties, which makes it responsible for 80% of the increase in the company’s GMV.
Also, keep in mind that Amazon Marketplace sales nearly doubled in just two years, from $200 billion to $390 billion. This makes it one of Amazon’s most important sources of revenue, especially considering that the marketplace has grown at a faster rate than Amazon retail in recent years. This is because 10 years ago, Amazon Retail Sales represented 65% of GMV and now they only represent 38%.
What does this growth represent for Amazon?
The rapid growth that Amazon has experienced has meant that the company must respond immediately by seeking the necessary resources to be able to respond to the high demand for orders, this includes acquisitions of new logistics centers and hiring more personnel. It is thanks to this that the company can continue to maintain its high quality standards in its services offered and always keep its customers satisfied. Likewise, this has also allowed more companies to want to sell their products on its platform and be part of the rapid growth Amazon Marketplace has generated in sales.
At Década Studio we help you achieve your sales goals on Amazon
At Década Studio we are experts in Amazon and marketplaces. With Amazon’s recognition as an Amazon Ads Partner, we help brands grow their businesses on the world’s leading retail platform. We successfully identify the needs of each client and focus on ensuring the highest possible performance.
If you want to start increasing your sales and take advantage of the key dates for it, do not hesitate to contact us, since you will have a team of professionals who will advise you at all times.
I'm Paola Veintimilla, Marketing Assistant at Década Studio. I like to find creative solutions to problems and I am always looking for new challenges. For me, social networks are a great tool not only to promote brands, but they are also an opportunity to connect with the audience. But in my spare time I'm just a cat lover.
