Small Businesses

Amazon’s Small Business Empowerment report unveils the secrets of small brands’ success

  • 8 min Read
  • August 23, 2023

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Escalon

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In the ever-evolving landscape of e-commerce, Amazon has emerged as the undisputed king of online retail, connecting consumers with a vast array of products from all corners of the globe. Alongside its giant marketplace, Amazon has been actively supporting small businesses, providing them with a platform to reach millions of potential customers.

Amazon recently released its 2022 Small Business Empowerment Report, which delves into the strategies and tactics adopted by small businesses to achieve remarkable success on the platform. The report reveals, “Selling in Amazon’s store has enabled independent sellers to employ an estimated 1.5 million people in the U.S., and during the 2022 holiday season alone, Amazon customers purchased nearly half a billion products from small businesses in the U.S., leveraging Amazon’s significant investments in customer traffic, a trusted shopping experience and fulfillment and logistics capabilities that enable fast and convenient delivery.”

Entrepreneur Edgar Diaz, shares, “Amazon has doubled the size of our company and helped generate a tremendous growth in sales. We’ve been able to reinvest in the company — hire more amazing employees and invest in marketing.”  

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Key insights from the report


The Small Business Empowerment Report is a data-driven study released by Amazon, which serves as a valuable resource for entrepreneurs and small brands aiming to make a mark in the competitive world of e-commerce. The report sheds light on how small businesses have been leveraging the Amazon ecosystem to grow their customer base, boost sales and achieve sustainable success.

Check out the highlights of the report:  

Insight 1: More than 60% of sales in Amazon’s store come from independent sellers.

Amazon is the top choice for millions of sellers across the world. Amazon’s Small Business Empowerment report shows that more than 60 percent of sales in Amazon’s store come from independent sellers — most of which are small- and medium-sized businesses. Many of these businesses are owned by women, Black people, military families as well as artisans who create handcrafted goods.

Matt Slykhuis, and owner of Boldly Growing, shares, “For small business owners, it used to be you could have a great idea and work hour after hour, but you still had to hope you catch a lucky break… however, Amazon has really leveled that playing field and made success possible for just about anyone who is willing to put in the effort to learn and bring their product to market.” 

Insight 2: Independent sellers in the U.S. sold more than 4.1 billion products.

In 2022, independent sellers in Amazon’s U.S. store sold more than 4.1 billion products — an average of 7,800 products every minute — and averaged more than $230,000 in sales in Amazon’s store.

Charmaine James, founder of Locsanity, who employed Amazon’s Fulfillment by Amazon (FBA) initiative, notes, “It’s amazing because prior to using FBA, we weren’t doing any forecasting. And here, you have a partner, Amazon, that’s telling us that for the next 30 days you’re going to sell 5,000 of these. We’re no longer being reactive, now we’re being proactive.”

“Shipping with FBA costs 30% less per unit than standard shipping options offered by major U.S. carriers and 70% less per unit than their premium options comparable to FBA,” according to Amazon’s Small Business Empowerment report.  

Insight 3: Brand owners grew sales by more than 20% year-over-year.

In order to help independent sellers grow their brands and get to the next level, Amazon offers a variety of new and improved tools, programs, and services. Kris Christian, former Wall Street analyst turned founder and CEO of Chicago French Press, says, “Amazon has definitely affected our growth in a major way. We’ve been able to grow about 50 percent from 2021 to 2022.”  

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Christian partnered with Amazon’s Black Business Accelerator to take her business to the next level. About the program, she explains, “Black Business Accelerator assigned us a rep, who is an integral part of our success in Amazon’s store. The ability to strategize with him and receive his guidance month over month has been invaluable as we scale. Amazon has embedded tools for success, and having a one-on-one expert has been a game-changer. It’s an efficient way to grow rather than having to figure it all out on our own.”  

Insight 4: More than 260 million products were exported globally by U.S.-based sellers.

The report highlights how “with Amazon Global Selling, sellers can use Amazon’s trusted global brand to reach customers across countries. Amazon’s state-of-the-art international logistic capabilities help sellers more easily and cost-effectively move products across borders. Selling tools also help simplify listing products across countries with automated translation and currency conversion capabilities for managing pricing and receiving disbursements.”  

Insight 5: Amazon and its lending partners lent US$ 2.1 billion to sellers.

In 2022, Amazon and its third-party financing partners provided independent sellers with access to US$ 2.1 billion, which is an increase of 50% from 2021. Amazon Lending program provides financing solutions to help eligible businesses free up cash flow and reach their goals. These solutions include first-and third-party term loans, third-party lines of credit and a merchant cash advance programs.

Insight 6. Amazon independent sellers created 1.5 million U.S.-based jobs.

In the U.S., selling through Amazon’s store has led to the creation of an estimated 1.5 million jobs, including those providing management, operations and support for sellers. In addition, sellers choosing to use Amazon’s FBA and Customer Service by Amazon (CSBA) programs support thousands of jobs in Amazon fulfillment centers, at delivery service partners that work with Amazon and within Amazon’s Customer Service teams.  

“Our goals with Amazon, our community, and business are all interconnected. For example, we work with a local non-profit organization called PRIDE that offers jobs for individuals with cognitive, developmental, and/or intellectual disabilities. PRIDE’s philosophy is that everyone who wants to work can work. The PRIDE team helps pack kits and fulfills orders for us. It’s a wonderful thing to be able to support them. Our community is a big part of this equation, because our community helped us get to where we are,” shares Angus Junkin, founder of Garden Tutor.  

Insight 7: Health and personal care products top the list of the most-shopped categories from U.S. independent sellers.

The number one category from U.S. independent sellers in Amazon’s store is health and personal care, followed by home, beauty, grocery and apparel.  

Insight 8: California had the most independent sellers in 2022.

While there are Amazon independent sellers in all 50 states; California, Florida, New York, Texas and New Jersey are the states with the most independent sellers in 2022.  

Insight 9: Alaska had the fastest-growing independent sellers.

Alaska tops the chart for the states with the fastest-growing independent sellers in Amazon’s store, followed by Washington D.C., Mississippi, Maine and Wyoming.  

A valuable guide for aspiring entrepreneurs seeking success on the e-commerce giant’s platform


Amazon’s Small Business Empowerment Report showcases how small businesses can harness the power of Amazon’s vast reach, infrastructure and advertising tools to achieve substantial growth. By embracing practices such as leveraging FBA, utilizing Amazon Advertising, valuing customer feedback, targeting niche markets and participating in small business programs, small brands can create a sustainable path to success.

As part of Amazon’s seller community development, the company offers educational resources, interactive tools that engage sellers with each other and Amazon, and a premier annual seller conference that attracts thousands of sellers from around the world.

As Amazon continues to invest in empowering small businesses, the opportunities for entrepreneurs to thrive on the platform are bound to grow. The Small Business Empowerment Report acts as a beacon of inspiration, demonstrating that with the right strategies and determination, even the smallest businesses can find their way to prosperity in the digital age

Want more? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, taxes, HR, payroll, insurance, and recruiting — and we can help yours too. Talk to an expert today.

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This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.

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