Amazon's 2019 report card: what did it do?

Now that the annual report is all over the screen, it’s time to review Amazon’s development in 2019.

Here’s an overview of Amazon’s developments in 2019. Let’s take a look!

In 2019, Amazon added more than 100 private-label brands. Currently, third-party sellers on the Amazon platform only generate 19% of private-label revenue, and the rest comes from Amazon’s own private-label brands.

The problem with private brands is that most of the products are the same, very common, easy to manufacture, cheap, and have similar search results . Since buyers cannot distinguish between private brands and ordinary products, the number of private brand products is growing, and inevitably there are many poor quality products mixed in.

The rise of private label brands means that search results are constantly changing and the market is more volatile. Products come and go, and only the most discounted products sell well and can generate sales.

In March 2019, many suppliers reported that Amazon had stopped purchasing and many suppliers were downgraded to sellers . Many third-party sellers said that if suppliers become sellers, market competition may become more intense.

Advertising has become Amazon's new cash cow. According to eMarketer data, advertising costs on Amazon's US site reached $10 billion in 2019 and are expected to continue to grow this year. In addition, Amazon launched Sponsored Display ads in September last year, allowing Amazon to promote products both on and off the platform.

This forces sellers to use Amazon's advertising services, leaving almost no room for natural search. There have been media reports that Amazon's search results have been occupied by advertisements. But sellers have no choice but to bid, compete for advertising space, and compete for customers.

Amazon provides Brand Analytics analysis tools for sellers who have registered for brand registration , allowing sellers to understand data such as popular search terms, products frequently purchased by users, and audience characteristics, opening a new era for sellers.

In February 2019, Amazon also launched Project Zero , which allows brand sellers to directly remove counterfeit products.