Great start to 2012 for e-commerce

2012 got off to a great start for internet commerce, with terrific Q1 performance all around and substantial gains posted by our marketplace partners, including Amazon and eBay

Amazon beat expectations in Q1, with marketplace merchants leading the way: 60% growth in 3rd party sales on Amazon versus 34% overall growth – so given that merchant sales on Amazon are now 39% of total units, that means that merchants are seeing growth rates about double Amazon’s own retail sales. As Piper Jaffray’s Gene Munster’s headline put it, “3rd Party Sales Drive Highest March Gross Margin Since 2006.” Illustrated (click for larger view): 

Amazon 3rd Party Sales

Amazon’s North America Media business grew 17% — up significantly from last year’s growth rates with Kindle product sales leading the way – while their Electronics and General Merchandise sales grew 44%.

Amazon’s CFO, Tom Szkutak, attributed this in part to the success of merchants leveraging Fulfillment by Amazon (FBA), a key part of driving global growth on Amazon (Ina Steiner detailed this in a recent ECommerceBytes article). Sellers can learn more about FBA from Jeff Moore, senior product manager for Amazon’s FBA, who will be presenting at MonCon EAST in Philadelphia May 19th and 20th. Merchants who attended our Monsoon Summit UK in April heard from Chris Poad, Amazon UK’s head of merchant services, about how merchants in the UK can leverage the combination of Marketplace and FBA to significantly drive sales through the EU.

eBay had a strong start to 2012. Overall revenue at eBay Inc. grew 29%, led by their payments group (PayPal) growing at 32% and overall merchant services growth through GSI, Magento and more. Their Marketplaces business grew a solid 12% excluding vehicles to over $16 billion for the quarter. EBay has made significant improvements in its Marketplaces business to grow sales for merchants and it’s showing: fixed price listings were now 64% of all sales and grew 18% year on year.

We saw a great Q1 here at Monson Commerce, too – our general merchandise sellers saw 73% growth in GMV year over year, and our media seller revenues grew at 9%. We’re also seeing a lot of interest in our marketplace integration tools given the results at Amazon, eBay and more; our marketplace integration solutions gained 32% more customers in Q1 of this year compared to last year.

Impressive results all around. Here’s to a great 2012!

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About Brian Elliott

Brian is CEO of Monsoon Commerce
This entry was posted in Channels, E-Commerce, E-Commerce Strategy, Marketplaces, Monsoon Commerce, Online Stores, Reporting and Analytics and tagged , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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