Benzinga | Oct 4, 2021 12:19PM EDT

Retailers Turn to Amazon in Droves

Photo by Christian Wiediger on Unsplash

Amazon (NASDAQ:AMZN) is the king of digital commerce. Since its founding 27 years ago, the company has grown to one of the largest retailers in the world. Last year, Amazon brought in $386 billion in revenue. That's a 38% increase from the previous year -- a staggering growth rate for a company that big.

Retailers know this, and every day more are choosing to sell their products through Amazon. Almost 10 million companies -- including huge brands like GoPro Inc. (NASDAQ:GPRO) and Roku Inc. (NASDAQ:ROKU) -- use Amazon, and that number is growing fast. The company is on pace to add 1.4 million retailers this year. These retailers know that selling their products with Amazon gives them access to millions of customers worldwide.

The most important advantage selling through Amazon gives you is trust. Amazon has built a loyal user base over the years. Today, the company has 150 million Prime members. These users pay a monthly or annual fee to have access to special privileges and are more likely to use the service often. According to statista.com, 27% of Prime members said they shopped on Amazon nearly every day to a few times a week. People trust that when they order something from Amazon it will be exactly what they expect and it will be delivered quickly.

This trust is so strong that many shoppers go to Amazon to shop without knowing what they want. They are looking for inspiration. According to a study by the digital agency Optimizely, 23% of shoppers go to Amazon without a specific product in mind. Retailers can grab the attention of shoppers who may never have otherwise sought out their product.

The storefront that Amazon provides is highly customizable. Retailers can create a user experience that is unique to the company -- one that will inform and engage the customer. WiSA (NASDAQ:WISA), a trade association representing 60 wireless audio brands, has built an Amazon storefront that effortlessly guides users and educates them on the technology they are selling. This is critical to attracting and retaining loyal customers.

The advantages that Amazon provides are clear. For retailers, Amazon is a perfect place to sell their products and connect with customers. The association with Amazon offers automatic credibility to the retailer and builds trust in the eyes of the consumer. The Amazon ecosystem is thriving and will continue to grow for many years to come.