Listen: West Amazon, Jason Delray And Hardee discussed on Today, Explained
"To know just how important the third party marketplace West Amazon's business so spoke to an expert. I'm Jason Delray senior correspondent for Commerce at recode which basically means and I spend way too much time thinking writing and talking about Amazon. Jason has spent the last six years figuring out how the marketplace replace works so people call on the everything store. The reason they're able to be that is because they don't have to buy all this inventory and stock it themselves in their own warehouses that third party merchants handle all of that for them and that immense selection weeds to price competition. which is the reason why Amazon on often has some of the best prices on the web? When did third parties start to sell products on Amazon? Sure so third party started selling rolling on Amazon all the way back in the year two thousand but back then it actually started with big retailers. Who are the third parties? Hardee's okay so toys R. US was one of the biggest third party sellers back in the day but over time retailers like toys. 'R US have learned. Why are we doing business with Amazon? And so now it is Sellers big and small merchants big and small one person shops up to do like really big operations and third party sellers today account for nearly sixty percent of total sales on ams so this is actually usually a really important part of how Amazon does business correct without third party sellers. Amazon would be much more like a traditional retailer L. or having to stock all the inventory themselves and what this allows Amazon to do is have what might be the biggest online selection in the world. One of the things that that I was particularly struck by was the idea that a lot of these third party sellers never actually Shirley handle their"