[eMarketer] Amazon ramps up resources for independent sellers

Amazon launched Seller Wallet, which extends and consolidates the tools for independent third-party sellers on its platform, per a press release.

Seller Wallet’s account management tools let merchants hold and view funds as well as enabling transfers to bank accounts, among other functions.

It’s free for sellers to use, though Amazon will charge currency conversion fees if that’s an action merchants take.

The brand is rolling out the wallet on a limited basis and plans to refine the offering as it grows.

The tool can resolve small- and medium-sized businesses’ (SMBs’) pain points, improving Amazon’s relationship with its sellers.

Cross-border transactions can also be a challenge. SMBs are likely to become more reliant on international shoppers as the number of cross-border buyers grows, and will benefit from simple, built-in currency conversion tools.

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.

According to eMarketer, growing its merchant-facing toolkit may be a harbinger of Amazon’s broader aims in the payments space.

Read the full eMarketer article here

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