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Third-party distributors made greater than $ three.5 billion from Prime Day, in response to Amazon

An employee loads customer orders into a waiting truck inside the million square foot Amazon distribution warehouse that opened in Fall River, MA on March 23, 2017.

John Tlumacki | Boston Globe | Getty Images

According to Amazon, third-party sellers made more than $ 3.5 billion in their market at this year's Prime Day shopping event, a nearly 60% increase over the previous year and a record for the small and medium-sized businesses that make up the market .

The company, which did not disclose total Prime Day sales, said third-party Prime Day sales grew even faster than Amazon's retail business.

Launched in 2015, Prime Day has grown into one of the company's most important retail and marketing events. It secures new Prime subscribers and enables Amazon to further promote its products and services.

This year's Prime Day was unusual as the coronavirus pandemic forced Amazon to push back the marquee from mid-July to October. The timing means the Christmas shopping season is starting earlier than ever. Other large retailers have followed Amazon's lead and started their discount promotions this month.

The range of Echo, Ring, Eero and Amazon's private label brands is usually heavily discounted on Prime Day. According to Amazon, the smaller and cheaper Echo Dot voice activated smart speaker was the most popular product this year. Prime Day took place in 20 countries this year.

But the event is also attended by more than 2.3 million small and medium-sized companies, which make up the Amazon online marketplace. In 2019, third-party sellers reached more than $ 2 billion in revenue on Prime Day. Top-selling third-party categories this year included bedding, wireless accessories, nutrition and wellness, arts and crafts, and healthcare, according to Amazon.

Third-party suppliers are becoming increasingly important to Amazon and account for around 58% of the company's total goods sold. At this percentage, Amazon is said to have achieved sales of at least $ 7 billion on this year's Prime Day. JPMorgan had previously forecast this year's event could bring in $ 7.5 billion in revenue, while eMarketer was targeting revenue of nearly $ 10 billion.

The mega-sale is expected to help the company post a record fourth quarter. In combination with the increase in sales over the holidays, according to analysts at FactSet, Amazon is expecting quarterly sales of over 100 billion US dollars for the first time in the fourth quarter.

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