Tuesday, Amazon announced exciting small business investment news. In a demonstration of its support of small businesses on Prime Day, Amazon has shared that they are on course to invest $18 billion this year to help independent companies sell to customers, including investments in logistics, tools, services, programs, and people. Prime Day is Amazon’s annual deal event for Prime members, where they deliver two days of special savings on many items. Amazon is also planning to invest an additional $100 million to help small businesses reach new customers starting on Prime Day and continuing throughout the holiday season to increase sales.
Since Covid-19 began, more than 100,000 small businesses in the United States have closed indefinitely. Small business owners need more direction and help than ever before learning how to pivot and transform its businesses. Amazon has had a standing reputation for supporting small businesses through SMB selling, investing in SMB growth, educating, providing credit, and more. As I stated in an earlier article, “Amazon Puts Numbers To SMB Support In New Study,” Amazon’s 2020 SMB impact report reveals that “American SMBs sold $3.4 billion products in Amazon’s stores and averaged 6,500 products sold per minute. SMB sellers had over $160,000 in sales on average, and the number of sellers that have reached $1M in sales grew by 20%.”
In the next twelve months, the company plans to provide more than 500,000 U.S. small and medium-sized businesses (SMBs) currently selling on Amazon with online selling guidance, education, and support. Also, the company plans to onboard an additional 100,000 U.S. businesses as new sellers in its store. This week, Amazon hosted a three-day virtual summit called Amazon Accelerate specifically for U.S. SMB’s who are currently selling in Amazon’s store or interested in doing so. More than 20,000 entrepreneurs and brand owners are set to attend this event, the company’s largest U.S. event dedicated to its sellers’ success.
Amazon Accelerate is virtually taking place on September 1-3 and features Amazon execs, current sellers, and experts. Resiliency has been an increasingly important topic in the last couple of months and has determined whether a small business has made it through this time. By providing educational resources such as this virtual event, SMB owners can gain the knowledge to thrive on Amazon and have a strong finish through 2020. Amazon sellers have proven to be successful during this time, recording selling more than 3.4 billion products in the last 12 months.
Amazon also launched 135 free tools this year for its sellers to help them gain insights, protect and build its brands, delight customers, and increase sales. These tools are said to help increase engagement, have CRM features, and introduce a new way to connect brands and customers. Two cool tools within this launch are “Repeat Purchase Behavior,” which provides insights on how customers engage with brands, and “Brand Follow,” Amazon’s CRM tool that allows sellers to see and connect with interested customers.
I think that Amazon is taking strides to impact SMB’s positively, especially in this time of crisis. They show that it supports its sellers and are giving them resources to thrive and build their brands. These resources are incredibly important to small businesses because they do not always have access to these resources and cannot spend the money to do so. I previously wrote hereabout Amazon’s narrative of its success being dependent on its SMB sellers’ success. CEO of Amazon Worldwide Consumer Jeff Wilke said, “Our success depends on [SMB sellers] success.” With the investments Amazon has made and the numbers from the recent SMB impact report, it is evident that they are a company that is supporting SMB’s in each stage of its journey. From free tools and educational resources to its large financial investment, Amazon is doing this the right way. Nice job, Amazon.
Note: Moor Insights & Strategy writers and editors may have contributed to this article.