Wednesday, February 27, 2019

2018 Amazon Small Business Impact

Amazon has released their numbers from 2018 and the impact that has had for small businesses and it is pretty staggering and I'm proud and thankful to be part of that movement.

You can see the details here from Business Wire

Some of the highlights:

  • More than 200,000 small and medium sized businesses have sales of $100,000 or more
  • More than 50,000 small and medium sized businesses have sales of $500,000 or more
  • 20% increase in small and medium sized businesses have sales of $1,000,000 or ore

Amazon claims that their small and medium sized businesses have helped create 900,000 jobs.  I really have no idea how this was calculated so I have no way of knowing its accuracy.

In 2018 I thankfully became a member of the 25,000ish small and medium sized sellers who have $1 million in sales.  Here is my personal job impact.

I have zero official employees but my business helps sustain a number of employees for other business.  Businesses need a lot of other businesses to help them succeed.

My prep service has someone employed who spends about half a day or more on my inventory during the months that aren't busy and full time during the busy months.  During the busy months someone else from the service is often also helping that employee.  

I pay for many services.  I know I am not responsible for any jobs on my own at any other places but maybe together it will equal a full time employee or two but really don't know

More Obvious

Inventory Suppliers - everyone who helps make the inventory that I sell or performs customer service. 
Amazon - amazon has to have employees to handle all of my inventory and sales
UPS/Fedex/Postal Service - Items are shipped to me from suppliers, inventory is then shipped to amazon and then from amazon consumers.  That's a lot of shipping.  Obviously they are serving others at the same time but more packages = more jobs.
My programmer - I am probably responsible for a couple weeks of the year for his job
Inventory Lab
Joe Lister
Inventory reconciling service - only one of his clients but every little bit helps
BQool - repricing services for those who don't know

Not obvious

Supplies - whoever is making the boxes, labels, tape, etc.
Landlord - I pay rent every month for storing my inventory.  That is another company involved besides my prep service.
Credit card companies - this actually might be a full time employee for them ;).  That being said, they aren't making money off me.
Accountant - again, they have tons of clients but each one helps.

The list can go on and on (utilities, internet company, etc.).  The point is that almost all businesses are great at creating more jobs within their own business or someone else's business.  It legitimately makes me happy knowing that other people are employed because of me even if it is indirect.  If I can hit 2 or 3 million in sales which will take some time, the prep service will probably need to employee more than one person just to handle my volume.  That is wonderful.