The news: Amazon launched Seller Wallet, which extends and consolidates the tools for independent third-party sellers on its platform, per a press release.
What it means: The tool can resolve small- and medium-sized businesses’ (SMBs’) pain points, improving Amazon’s relationship with its sellers.
Amazon’s opportunity: Independent sellers are an increasingly important part of Amazon’s business: This year, Amazon’s marketplace is expected to generate $251.65 billion in sales—over two-thirds of its total. Amid a sales slowdown, these relationships may become even more integral, per PYMNTS, magnifying the importance of investing in functions tailored to their needs.
And with 50% to 70% of digital commerce set to take place on marketplaces by 2025, per McKinsey, Amazon’s relationships with sellers will be critical to its ability to outcompete other marketplaces for SMBs’ business.
A broader look: Growing its merchant-facing toolkit may be a harbinger of Amazon’s broader aims in the payments space.
In light of these moves, Seller Wallet could signal broader merchant services ambitions—which would not only enhance the benefits we’ve mentioned, but also help the firm more directly compete with rivals like Shopify on the back-end in tandem with its front-facing marketplace.
Go deeper: Check out our Small-Business Payment Disruptors and Era of Uncertainty: Merchant Services Providers reports to learn more about small businesses’ needs, particularly in the current climate.
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