The tech giant released its second annual SMB Impact Report on Tuesday, a 12-page dossier devoted to showing Amazon's impact on the 1.9 million small and medium-size businesses (SMBs) that use its tools and services. "Small and medium-sized businesses selling in Amazon's stores now account for 58 percent of our sales," the report reads.
It's unclear if that percentage refers to the company's total sales or product sales. If the latter, SMBs on Amazon generated roughly $82.31 billion from the company's reported $141.92 billion in 2018 product sales. Amazon didn't immediately respond to a request for clarification.
The release of the report is well-timed. Since January, Amazon has weathered a stream of reporting on fake and dangerous knockoff versions of small-business products appearing on its third-party marketplace platform. The problem has been particularly prevalent for companies appearing on Shark Tank, thanks to the TV show's exposure boost.
Even so, the report is notable for several interesting statistics. For example, on average, American SMBs made more than $90,000 from selling on Amazon's marketplace in 2018. And over the course of that year, Amazon lent those companies more than $1 billion.
Those loans are available only to Amazon sellers, and usually process more quickly than conventional loans, since the company already has sales history and personal information for all sellers on file. Amazon has never publicly disclosed the interest rates on its loans, though entrepreneur Jim Barron told NerdWallet in 2017 that the rates he received ranged from 15.9-16.9 percent--comparable to many credit cards, but far lower than traditional loans.
The Amazon report also shows that vendors in some states are selling more effectively than others. According to the report, these are the top 10 states with the fastest-growing, Amazon-selling SMBs:
- North Dakota