Since the first quarter of 2022, Amazon has downsized its headcount, while and in early 2023, CEO Andy Jessy announced further workforce reductions. Like other e-commerce players, Amazon is being affected by the economic recession and general downturn of online consumer demand after the COVID-19 pandemic surge. Additionally, Amazon Prime has expanded to offer instant streaming of selected movies and television shows through Amazon Prime Video and Music. Prime perks contributed to the increasing sales registered during the Prime Day sale event worldwide. Due to these exclusive services, satisfaction towards Amazon’s delivery conditions and discounted prices are generally much higher among Prime users, a global survey showed. However, exclusive use of third-party selling seems to be shrinking in the United States, with an increasing percentage of sellers opting for a hybrid first-part and third-part business scheme.Īmazon also offers Amazon Prime, an annually paid membership giving free one-day delivery in the United States as well as discounted one-day shipping rates, which current users reckon is one of the key advantages of buying on the marketplace. 3P sales account for roughly 60 percent of total paid units on Amazon’s marketplace, and around the same share of 3P orders are completed via Amazon’s fulfillment services. The latter are independent sellers using Amazon as an e-commerce site to offer their products. The former are vendors that sell goods directly to Amazon, who later re-sells them to final customers. Amazon serves as a global platform for first- and third-party sellers (3P).
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